Sonoco Implementing Price Increase for Uncoated Recycled Paperboard

Rhea-AI Summary

Sonoco (NYSE: SON) is raising prices by $50 per ton for all grades of uncoated recycled paperboard (URB) in the U.S. and Canada, effective May 30, 2022. The increase reflects ongoing tight market conditions and inflationary pressures impacting manufacturing costs, including energy and labor. Tim Davis, Division VP and General Manager, noted that challenges from 2021 persist, with strong demand and increasing backlogs. Sonoco recorded net sales of $5.6 billion in 2021 and continues to prioritize sustainability, ranking highly in several industry recognitions.

Positive

• Price increase of $50 per ton for URB could enhance revenue.
• Company ranked first in the Packaging sector on Fortune’s World’s Most Admired Companies for 2022.
• Included in Barron’s 100 Most Sustainable Companies for the third consecutive year.

Negative

• Inflationary pressures affecting manufacturing costs.
• Continued challenges from strong demand and increasing backlogs.

HARTSVILLE, S.C., May 02, 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 May 30, 2022.

Sonoco said the price change reflects continued tight market conditions and inflationary pressures on manufacturing costs, including energy, freight, chemicals, packaging materials and labor. “Unfortunately, the conditions that challenged us in 2021 have not dissipated in 2022. We continue to be challenged by strong demand, increasing backlogs and inflating costs,” said Tim Davis, Division Vice President and General Manager, Paper – U.S. and Canada.

About Sonoco
Founded in 1899, Sonoco (NYSE: SON) is a global provider of consumer, industrial, healthcare and protective packaging. With net sales of $5.6 billion in 2021, the Company has 22,000 employees working in approximately 300 operations in 32 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 ranked first in the Packaging sector on Fortune’s World’s Most Admired Companies for 2022 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 recent price increase for Sonoco's uncoated recycled paperboard?

Sonoco announced a $50 per ton price increase for all grades of uncoated recycled paperboard, effective May 30, 2022.

What factors led to Sonoco's price increase announcement?

The price increase is attributed to tight market conditions and inflationary pressures on manufacturing costs, including energy, freight, and labor.

What were Sonoco's net sales in 2021?

Sonoco reported net sales of $5.6 billion in 2021.

Which recognitions did Sonoco achieve in 2022?

Sonoco was ranked first in the Packaging sector on Fortune’s World’s Most Admired Companies and included in Barron’s 100 Most Sustainable Companies.