Welcome to our dedicated page for Sonoco Prod news (Ticker: SON), a resource for investors and traders seeking the latest updates and insights on Sonoco Prod stock.
Sonoco Products Company reports recurring developments tied to its global packaging operations, including Consumer Packaging and Industrial Paper Packaging. News commonly covers quarterly and annual results, guidance, segment performance, portfolio simplification, capital allocation and common-stock dividends.
Company updates also address pricing for uncoated recycled paperboard, tubes, cores and converted paperboard products in North America and EMEA, along with capacity investments such as paper can production and nailed wood reel manufacturing. Sonoco news frequently connects these actions to demand in food, beverage, household, personal care, pharmaceutical, industrial and infrastructure-related packaging markets.
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.
On June 24, 2021, Sonoco (NYSE: SON) announced its acquisition of group annuity contracts from Athene Holding Ltd. This strategic move transfers approximately $900 million in U.S. pension plan obligations for around 8,300 participants to Athene. The transaction aims to mitigate pension liabilities, with funding sourced entirely from plan assets. Following a $488 million lump-sum distribution to 2,250 participants, Sonoco anticipates recognizing $550 million in non-cash, pre-tax pension settlement charges in Q2 2021. Athene will take over administration of benefit payments by September 30, 2021.
On June 24, 2021, Sonoco-Alcore S.a.r.l. announced a price increase for all recycled paperboard grades in EMEA due to rising inflationary pressures. Effective July 1, 2021, these increases are a response to escalating costs related to energy, packaging, and freight, which the company has been absorbing throughout 2021. Phil Woolley, Division VP – Paper Europe, indicated that previous cost increases were only passed on concerning waste paper prices.
Sonoco (NYSE: SON) announced a price increase of at least 6% for all paperboard tubes and cores, effective from July 26, 2021, due to rising costs for uncoated recycled paperboard, which remains in tight supply. The company is also facing inflationary pressures in adhesives, packaging, and logistics. As the largest producer of paper-based tubes and cores in North America, Sonoco serves various industries, including paper and textiles. The company reported annual net sales of approximately $5.2 billion and strives to create sustainable packaging solutions.