Sonoco Prod Stock Price, News & Analysis

Cascades Sonoco has achieved SQF certification for its Birmingham facility, a significant milestone confirming adherence to the Safe Quality Food standards recognized globally for food safety. This certification enhances the company's ability to assure customers about the safety and reliability of their products across the food supply chain, including food manufacturing and animal feed production.

Jeff Stacy, Market Segment Manager, emphasized the importance of this certification in demonstrating their commitment to food safety and operational excellence.

Sonoco (NYSE: SON) announced a $70 per ton price increase for all grades of uncoated recycled paperboard (URB) in the U.S. and Canada, effective September 7, 2021. This decision responds to strong demand within the company’s mill network, resulting in historic order backlogs, and ongoing inflationary pressures affecting papermaking costs. Founded in 1899, Sonoco serves global brands with approximately $5.2 billion in annual net sales and a workforce of 19,000 employees across 34 countries.

Sonoco (NYSE: SON) released its 2020-21 Corporate Responsibility Report, outlining 2030 commitments to enhance sustainability by reducing energy, greenhouse gas emissions, water usage, and waste. The report emphasizes ambitious emissions reduction targets approved by the Science Based Targets initiative. Key initiatives include an investment of $115 million in Project Horizon, aimed at becoming the lowest-cost producer of uncoated recycled paperboard with a capacity of 180,000 tons and significant environmental benefits. Elizabeth Rhue will lead sustainability initiatives.

Sonoco (NYSE: SON) reported a GAAP net loss of $(3.34) per diluted share for Q2 2021, compared to earnings of $0.55 in the same period last year. The loss included $418.7 million in after-tax charges, primarily due to a non-cash pension settlement charge. However, base earnings increased to $0.84 per diluted share from $0.79. Q2 net sales rose 11% to $1.38 billion. The company expects Q3 base earnings between $0.87 and $0.93 and full-year earnings at $3.50 to $3.60 per share, maintaining previous guidance. Sonoco also committed to significant greenhouse gas emissions reductions by 2030.

The Board of Directors of Sonoco (NYSE: SON) declared a quarterly dividend of $0.45 per share, payable on September 10, 2021, to shareholders of record as of August 10, 2021. This marks the 385th consecutive quarter of dividend payments, dating back to 1925, and the company has raised dividends for 38 consecutive years. The dividend yield stands at 2.73%, significantly higher than the S&P 500 Index. Sonoco, a leading provider of packaging solutions, reported annualized net sales of approximately $5.2 billion.

Sonoco (NYSE: SON) has announced its commitment to reduce greenhouse gas emissions as part of its environmental initiative, aligning with the Paris Climate Agreement. The company aims to cut absolute scope 1 and 2 emissions by 25% by 2030 from a 2020 base year and scope 3 emissions by 13.5% from a 2019 base year. Sonoco is also pursuing a goal of achieving net-zero emissions by 2050. The initiative is backed by the Science Based Targets initiative (SBTi) and will involve sustainability metrics integrated into business strategies.

Sonoco (NYSE: SON) announced significant advancements in its Project Horizon, investing $115 million to convert its corrugated medium machine in Hartsville, S.C. to an uncoated recycled paperboard (URB) operation, with a target annual capacity of 180,000 tons. The transition is expected to be completed by Q2 2022 and will include upgrades to the infrastructure. The project aims for $30 million in annual cost savings by 2023, while exiting the corrugated medium market and shutting down two URB machines, reducing capacity by 70,000 tons. Sonoco operates 11 mills and expects URB capacity to stabilize at 1.2 million tons.

On June 30, 2021, Sonoco (NYSE: SON) announced a new five-year $750 million revolving credit facility, replacing its previous $500 million line established in 2017. The Credit Agreement enhances financial flexibility and features similar terms. This facility will support Sonoco’s $500 million commercial paper program, with a borrowing margin of 125 basis points based on current credit ratings. The banking syndicate includes notable institutions like BofA Securities and JPMorgan Chase. Sonoco, founded in 1899, reported approximately $5.2 billion in annual net sales.

Sonoco Protective Solutions, a division of Sonoco (NYSE: SON), is expanding its Sonopost^® packaging technology into Europe with a new manufacturing site in Sochaczew, Poland, set to open in July-August 2021. This technology utilizes 100% recycled paperboard corner posts designed for protecting large appliances and HVAC units, addressing sustainability concerns. The product's recyclable nature aids manufacturers in reducing plastic waste. Adam Wood, VP and GM, emphasized the significance of sustainability in European manufacturing.