Sonoco Implementing Price Increase for Uncoated Recycled Paperboard

Rhea-AI Summary

Sonoco (NYSE: SON) has announced a $50 per ton price increase for all types of uncoated recycled paperboard in the U.S. and Canada, effective February 18, 2022. This decision is attributed to strong demand leading to extended order backlogs and inflationary pressures on freight, energy, labor, and manufacturing costs. With annual net sales of about $5.5 billion and a workforce of 19,000 employees across 34 countries, Sonoco aims to create sustainable solutions and is recognized among Fortune's Most Admired Companies for 2021.

Positive

• Implementation of a $50 per ton price increase for uncoated recycled paperboard to offset rising manufacturing costs.
• Strong demand resulting in extended order backlogs, indicating healthy market conditions.

Negative

• Inflationary pressures on freight, energy, and labor costs may impact overall profit margins.

HARTSVILLE, S.C., Jan. 20, 2022 (GLOBE NEWSWIRE) -- Sonoco (NYSE: SON) today announced it is implementing a $50 per ton price increase for all grades of uncoated recycled paperboard (URB) in the United States and Canada, effective with shipments beginning February 18, 2022.

Sonoco said the price increase was in response to continued strong demand resulting in extended order backlogs, and inflationary pressures on freight, energy, paper making chemicals, labor and other manufacturing costs.

About Sonoco

Founded in 1899, Sonoco (NYSE: SON) is a global provider of consumer, industrial, healthcare and protective packaging. With annualized net sales of approximately $5.5 billion, the Company has 19,000 employees working in approximately 300 operations in 34 countries, serving some of the world’s best-known brands in some 85 nations. Sonoco is committed to creating sustainable products, services and programs for our customers, employees and communities that support our corporate purpose of Better Packaging. Better Life. The Company was listed as one of Fortune’s World’s Most Admired Companies for 2021 as well as being included in Barron’s 100 Most Sustainable Companies for the third consecutive year. For more information, visit www.sonoco.com.

FAQ

What is the reason for Sonoco's price increase on uncoated recycled paperboard?

Sonoco's price increase of $50 per ton is due to strong demand and inflationary pressures on various manufacturing costs.

When will Sonoco's price increase for uncoated recycled paperboard take effect?

The price increase will be effective for shipments beginning February 18, 2022.

What are the financial implications of Sonoco's recent price increase?

The price increase aims to offset rising costs from inflation, which could help maintain profit margins despite increasing expenses.

How much is Sonoco's annual net sales?

Sonoco has annualized net sales of approximately $5.5 billion.

How many employees does Sonoco have?

Sonoco employs around 19,000 individuals across its operations.