Sonoco Prod Stock Price, News & Analysis

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.

Sonoco (NYSE: SON) has successfully priced its inaugural green bond offering, totaling $1.2 billion. This includes $400 million in Senior Unsecured Notes due 2025, $300 million due 2027, and $500 million due 2032. The proceeds will mainly finance the acquisition of Ball Metalpack, enhancing Sonoco's sustainability efforts. The offering is expected to close on January 21, 2022. J.P. Morgan and Wells Fargo are joint book-running managers for this issuance, which supports Sonoco's commitment to sustainable packaging solutions.

Sonoco (NYSE: SON) will hold its quarterly investor conference calls on specific dates in 2022. Key dates include:

• Q4 2021 Results: February 10, 2022 at 11 a.m. ET
• Q1 2022 Results: April 21, 2022 at 11 a.m. ET
• Q2 2022 Results: July 21, 2022 at 11 a.m. ET
• Q3 2022 Results: October 20, 2022 at 11 a.m. ET

Investors can access the live conference calls via Sonoco's Investor Relations website. The company reported annual net sales of approximately $5.5 billion and operates in over 300 locations worldwide.

Sonoco Recycling, a division of Sonoco (NYSE: SON), has acquired American Recycling of Western North Carolina, a well-capitalized recovered paper recycler in Asheville, N.C. This acquisition, expected to generate around $9 million in sales for 2021, enhances Sonoco's mill operations by providing a stable, lower-cost supply of recovered fiber. The facility processes about 30,000 tons of recovered fiber annually and is strategically located 65 miles from Sonoco's Newport, TN, paperboard mill. This move supports Sonoco's commitment to sustainability and growth.

On December 20, 2021, Ball Corporation (NYSE:BLL) announced the sale of Ball Metalpack to Sonoco (NYSE:SON) for approximately $1.35 billion. The sale is subject to regulatory review and is expected to close in Q1 2022. Ball Metalpack, a joint venture between Platinum Equity and Ball Corporation, focuses on sustainable steel containers for various products. The transaction aims to enhance shareholder value through potential share buybacks and dividends, following a successful transformation program over three years that invested $100 million in operational improvements.

Sonoco (NYSE: SON) has announced its definitive agreement to acquire Ball Metalpack for $1.35 billion in cash, enhancing its Consumer Packaging franchise. This acquisition is projected to boost cash flows and earnings, with Ball Metalpack expected to generate $850 million in revenue and $111 million in EBITDA for 2021. The deal offers an estimated tax benefit of $180 million. Sonoco anticipates annual synergies of at least $20 million from procurement and savings. The transaction is expected to close in Q1 2022, subject to regulatory approval.

Sonoco ThermoSafe, a unit of Sonoco (NYSE: SON), has partnered with Asiana Airlines to lease the Pegasus ULD® temperature-controlled shipping container. This innovative container, the first FAA and EASA-approved passive bulk ULD for pharmaceuticals, will enhance shipping efficiency and reduce costs for pharmaceutical freight forwarders. The Pegasus ULD® features a lightweight, damage-resistant design and real-time telemetry for monitoring temperature and environmental conditions. This collaboration aims to strengthen cold chain logistics, particularly in Incheon, South Korea.

Sonoco (NYSE: SON) announced a strategic plan targeting $1 billion in annual EBITDA by 2026 during its investor meeting on December 10, 2021. The company projects its 2022 base earnings per diluted share to be between $3.85 and $3.95, with an anticipated significant improvement in free cash flow. Key strategies include capital investment, operational efficiencies, and potential acquisitions. Despite a projected GAAP loss for 2021, Sonoco expects strong operating cash flow of $520-$550 million. The firm is committed to sustainability goals, aiming for a 25% reduction in greenhouse gas emissions by 2030.

Sonoco (NYSE: SON) will hold a live virtual meeting for the financial community on December 10, 2021, at 8 a.m. ET. Key executives, including CEO Howard Coker and CFO Julie Albrecht, will discuss the company's strategic overview and financial outlook. Attendees can join via the Internet or phone. A replay will be available on Sonoco’s Investor Relations website after the event, and a telephonic replay will be accessible until December 20. Sonoco, recognized for its sustainable practices, reported annual sales of approximately $5.2 billion and operates in 34 countries.