Sonoco Implementing Price Increase for Uncoated Recycled Paperboard

Rhea-AI Summary

Sonoco (NYSE: SON) announced a $50 per ton price increase for all grades of uncoated recycled paperboard (URB) in the U.S. and Canada, effective April 26, 2021. This decision is attributed to strong demand and significantly longer backlogs, along with rising input costs including freight and papermaking chemicals. The company, which has annualized net sales of approximately $5.2 billion, aims to adapt to market conditions and maintain pricing power amidst inflationary pressures.

Positive

• Price increase of $50 per ton may improve revenue.
• Strong demand signals a robust market position.

Negative

• Longer backlogs could lead to operational challenges.
• Significant inflation in input costs may squeeze margins.

HARTSVILLE, S.C., March 24, 2021 (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 April 26, 2021.

Sonoco said the price increase was in response to strong demand across its U.S. and Canada mill network which is driving significantly longer backlogs as well as stepped up inflation of input costs, especially freight, papermaking chemicals and packaging supplies.

About Sonoco

Founded in 1899, Sonoco (NYSE: SON) is a global provider of a variety of consumer packaging, industrial products, protective packaging, and displays and packaging supply chain services. With annualized net sales of approximately $5.2 billion, the Company has 20,000 employees working in approximately 320 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 year in a row. For more information, visit www.sonoco.com. 

FAQ

What is Sonoco's recent price increase for recycled paper products?

Sonoco announced a $50 per ton price increase for uncoated recycled paperboard in the U.S. and Canada, effective April 26, 2021.

Why did Sonoco implement a price increase on uncoated recycled paperboard?

The price increase is in response to strong demand and rising input costs, including freight and papermaking chemicals.

When will the new prices for Sonoco's uncoated recycled paperboard take effect?

The new prices will take effect with shipments beginning April 26, 2021.

What are the annualized net sales of Sonoco?

Sonoco has annualized net sales of approximately $5.2 billion.

How is Sonoco positioned in the market?

Sonoco is positioned strongly due to high demand, but long backlogs indicate potential operational challenges.