Sonoco Prod Stock Price, News & Analysis

Sonoco (NYSE: SON) has announced a $150 million accelerated share repurchase (ASR) agreement with Wells Fargo Bank, utilizing available cash. The initial repurchase will involve approximately 1.75 million shares, with final numbers to be based on the company’s share price during the repurchase period. This ASR aligns with Sonoco's $350 million share repurchase authorization approved on April 20, 2021, reflecting the company's strong financial position and commitment to returning cash to shareholders while investing in its core businesses.

Sonoco (NYSE: SON) announced a 9.5% price increase for all rigid paper containers and closures in North America, effective June 3, 2021. This decision, according to Ernest Haynes, is essential to address rapidly rising costs for key raw materials such as adhesives, laminate structures, recovered paper, and steel. The company aims to maintain supply continuity amidst supply chain challenges and inflationary cost pressures exacerbated by events like Winter Storm Uri. Sonoco operates globally, with annualized net sales of approximately $5.2 billion.

Sonoco (NYSE: SON) has announced a cash tender offer to buy back up to $300 million of its 5.75% Notes due 2040. The company will utilize available cash for this purchase. The Offer's expiration is at 11:59 p.m. on May 25, 2021, and includes an early tender deadline of 5:00 p.m. on May 11, 2021. Holders who tender their Notes by this deadline will receive a total consideration, which incorporates an early tender premium of $50 per $1,000. The company reserves the right to modify the terms of the Offer at any time.

Sonoco (NYSE: SON) announced a price increase of at least 6% for all paperboard tubes and cores, effective May 24, 2021, in the U.S. and Canada. This decision stems from ongoing rises in costs for uncoated recycled paperboard and significant inflation in adhesives, packaging, and logistics. As the largest producer of paper-based tubes and cores in North America, Sonoco continues to address supply challenges for its primary raw materials. The company remains committed to sustainable practices while serving various industries.

Sonoco (NYSE: SON) reported its Q1 2021 financial results, posting GAAP earnings of $0.71 per diluted share, down from $0.80 in 2020. The company's net sales increased to $1.35 billion, up 3.8% compared to $1.30 billion last year. First-quarter cash flow from operations improved significantly to $138.7 million, a 58% increase year-over-year. Guidance for Q2 2021 estimates base earnings per share between $0.82 and $0.88. However, the company anticipates a net GAAP loss due to expected pre-tax settlement charges of approximately $560 million related to its pension plan.

Sonoco's Board has declared a quarterly dividend of $0.45 per share, payable on June 10, 2021, to shareholders on record by May 10, 2021. This marks the 384th consecutive quarter of dividends, with a history dating back to 1925. The 2.8% yield significantly exceeds the S&P 500 average. Additionally, a new $350 million share repurchase authorization has been approved, enhancing Sonoco's commitment to returning cash to shareholders while balancing investments in its core businesses.

Sonoco (NYSE: SON) has sold its U.S. Display and Packaging business to Hood Container Corporation for $80 million. The divestiture is part of Sonoco's strategy to focus on its core Consumer and Industrial packaging sectors. In 2020, the sold business generated net sales of approximately $135 million and operated 12 facilities with around 450 employees. Sonoco plans to reinvest proceeds from this sale to enhance shareholder value and support its growth initiatives.

Sonoco (NYSE: SON) announced a $50 per ton price increase for all grades of uncoated recycled paperboard (URB) in the U.S. and Canada, effective April 26, 2021. This decision is attributed to strong demand and significantly longer backlogs, along with rising input costs including freight and papermaking chemicals. The company, which has annualized net sales of approximately $5.2 billion, aims to adapt to market conditions and maintain pricing power amidst inflationary pressures.

On March 16, 2021, Sonoco ThermoSafe partnered with Unilode Aviation Solutions to enhance the maintenance, repair, and handling of their Pegasus ULD, a pioneering FAA and EASA-approved temperature-controlled container for pharmaceuticals. This collaboration aims to optimize the distribution of temperature-sensitive products globally, particularly during the COVID-19 vaccine rollout. The Pegasus ULD features advanced composite materials and a telemetry system for real-time monitoring, ensuring safe transport at reduced costs. Sonoco ThermoSafe continues to innovate in temperature assurance packaging.