Sonoco Prod Stock Price, News & Analysis

Sonoco Products Company (NYSE: SON) has promoted Aditya Gandhi to Chief Accounting Officer, effective immediately. He will oversee accounting and SEC reporting functions and partner with senior leaders to improve efficiency and effectiveness within the company. Gandhi brings nearly two decades of experience, having held significant roles at Westrock and Deloitte. Sonoco, with net sales of approximately $5.6 billion in 2021 and a workforce of about 22,000 across 32 countries, continues to focus on sustainable packaging solutions and maintaining its reputation as a leader in the industry.

Sonoco (NYSE: SON) reported record net sales of $1.91 billion for Q2 2022, a 38% increase from $1.38 billion in Q2 2021. GAAP net income was $131.7 million, or $1.33 per diluted share, compared to a loss of $(334.1) million in 2021. Base net income reached $173.8 million, up 85% year-over-year. The company expects Q3 base earnings between $1.35 and $1.45 per diluted share, with full-year guidance raised to $6.20-$6.30. Cash flow from operations is forecasted at $690-$740 million. CEO Howard Coker praised the strong performance despite foreign currency impacts.

Sonoco (NYSE: SON) has declared a quarterly dividend of $0.49 per share, payable on September 9, 2022, to shareholders of record as of August 10, 2022. This marks the 389th consecutive quarter of dividend payments, dating back to 1925. The dividend offers an approximate yield of 3.3%, significantly higher than the S&P 500 Index. In 2021, Sonoco reported net sales of $5.6 billion and continues its commitment to sustainability, ranking first in its sector on Fortune's list of the World’s Most Admired Companies for 2022.

Sonoco ThermoSafe has partnered with Turkish Airlines to lease the Pegasus ULD®, a temperature-controlled bulk shipping container designed for pharmaceutical transport. This partnership grants freight forwarders direct access to the Pegasus ULD® through Turkish Cargo, enhancing their cold chain services. The Pegasus ULD® is notable for being the first FAA and EASA-approved passive bulk container, which reduces freight costs and accelerates customs handling. Built with composite materials, it is lightweight and damage-resistant, featuring an integrated telemetry system for real-time monitoring.

Sonoco expands its paper cup recycling capabilities at its Hartsville, SC mill, adding to the acceptance of EnviroCan containers in residential mixed paper bales. This initiative follows prior validation across all U.S. paper mills for rigid paper cans. The goal is to enhance recycling processes and contribute to sustainability efforts. The company aims to recycle polycoated fiber-based containers, furthering its commitment to responsible material sourcing and creating a circular economy within the packaging industry.

Sonoco (NYSE: SON) announced an update for its second-quarter 2022 financial guidance, projecting net income per diluted share between $1.27 and $1.37, a strong improvement compared to a loss of ($3.34) in the same quarter last year.

Base net income is estimated to be between $1.60 and $1.70, over 70% higher than the previous year's $0.93. This optimistic outlook is attributed to robust customer demand, especially in the Consumer Packaging sector, and effective price recovery initiatives.

The company will announce its financial results on July 21, 2022, followed by an investor conference call.

Sonoco has validated the HolyGrail 2.0 sorting prototype, achieving a 99% detection rate for packaging waste, following successful semi-industrial trials. This initiative, led by AIM and the Alliance to End Plastic Waste, aims to enhance recycling quality in the EU through digital watermarking technology. Sonoco's trials demonstrated that 96% of its rigid paper containers were correctly detected, positioning the company as a key player in sustainable packaging. With over 160 partners involved, this advancement may have significant global implications for recycling efficiency.

Sonoco has announced the election of Robert R. Hill, Jr. as Lead Independent Director, succeeding James M. Micali, who is retiring after 19 years of service. Hill brings over 27 years of experience at SouthState Corporation and has been on Sonoco's board since 2019. Micali, 74, had a notable career, including his role as President of Michelin North America. Hill's leadership is expected to enhance corporate governance and strategic oversight as he also chairs the Governance Committee and serves on other key committees.