Sonoco Prod Stock Price, News & Analysis

Sonoco (NYSE: SON) has acquired D&W Paper Tubes, Inc., a Chatsworth, GA-based manufacturer of sustainable industrial paper tubes and cores. Founded in 2000, D&W is expected to generate approximately $18 million in sales in 2021. This acquisition enhances Sonoco's Industrial Paper Packaging segment and strengthens its presence in the Northeast Georgia carpet and textile markets. The company anticipates achieving significant business synergies through its integrated operations in the Southeast.

Sonoco, a leading global packaging company, announced the retirement of Marcy Thompson, Vice President of Marketing and Innovation, effective end of 2021. With over 15 years at Sonoco, she significantly contributed to various business areas and innovation initiatives. Additionally, Ernest Haynes and Russell Grissett have been appointed as Vice Presidents for Rigid Paper Containers and Global Flexible Packaging, respectively, effective November 1, 2021. Both bring extensive experience from their previous roles within the company.

Sonoco has validated the acceptance of its EnviroCan paper containers in residential mixed paper bales for recycling into new paperboard at 10 of its paper mills across the U.S. This initiative, led by staff VP of sustainability, Elizabeth Rhue, will enable the production of 100% recycled paperboard, utilizing up to 85% post-consumer fiber. The move aligns with Sonoco's commitment to sustainability and material circularity, allowing for the recycling of EnviroCan containers through the mixed paper stream, further enhancing their environmental efforts.

Sonoco (NYSE: SON) has been awarded the 2021 Innovator Award for its EnviroSense® PaperBlister™ package in Design Optimization. This all-paper package offers a fully recyclable and plastic-free alternative to traditional blister packaging, underscoring Sonoco's commitment to sustainability. Key features include improved seal quality, increased handling speed, and reduced shipping costs. The PaperBlister package promotes efficiency, shipping flat to optimize space. Sonoco, with annual net sales of around $5.2 billion, continues to innovate in sustainable packaging while supporting its corporate purpose of 'Better Packaging. Better Life.'

Sonoco-Alcore announced a price increase of 50 EUR/50 GBP per ton for all tube and core grades sold in its EMEA regions, effective November 1, 2021. This decision is driven by significant inflationary pressures and rising costs, particularly in energy. Karsten Kemmerling, Division VP - Sales & Marketing EMEA, emphasized the unavoidable need to pass on these costs to customers due to the rapid escalation in energy prices.

Sonoco (NYSE: SON) reported its third-quarter 2021 financial results, seeing GAAP earnings per diluted share rise to $1.12 from $0.82 a year earlier, benefiting from a net after-tax gain of $20.6 million. Third-quarter net sales reached a record $1.42 billion, a 7.8% increase over the previous year, driven by strong customer demand and a positive volume/mix. The company expects fourth-quarter base earnings per diluted share between $0.84 and $0.90, with full-year guidance adjusted to $3.49 to $3.55. Challenges remain due to supply chain disruptions and rising costs, impacting certain business segments.

The Board of Directors of Sonoco (NYSE: SON) has declared a quarterly dividend of $0.45 per share, to be paid on December 10, 2021, to shareholders on record as of November 10, 2021.

This marks the 386th consecutive quarter of dividend payments since 1925, with 38 years of consecutive increases. At a closing stock price of $15.52 on October 15, 2021, the dividend yield stands at 2.90%, significantly higher than the S&P 500 Index.

Sonoco (NYSE: SON) announced a minimum 6% price increase for all paperboard tubes and cores, effective November 8, 2021, in the United States and Canada. This decision is driven by ongoing inflation in Uncoated Recycled Board, adhesives, and primary packaging components, alongside high market demand. Doug Schwartz, Division Vice President, emphasized the company's dedication to maintaining quality and service amid current supply chain challenges. Sonoco is North America's largest producer of paper-based tubes and cores, catering to diverse industries.