Sonoco Prod Stock Price, News & Analysis

On September 28, 2020, Sonoco (NYSE: SON) was recognized as one of the 100 "Best for Vets" companies by Military Times. This accolade highlights Sonoco's commitment to veteran inclusion and workplace culture, alongside other notable brands such as Amazon and Kellogg Company. CEO Howard Coker emphasized the valuable traits veterans bring to the company, aligning with its philosophy of integrity and teamwork. The selection process involved meticulous evaluation of veteran policies and recruitment practices, underscoring Sonoco's dedication to supporting veterans in the workforce.

Sonoco ThermoSafe, a subsidiary of Sonoco (NYSE: SON), announced FAA approval for its Pegasus ULD® bulk temperature-controlled container, marking it as the first passive bulk ULD designed for pharmaceuticals. This approval facilitates faster international ground handling and customs processes, thereby reducing costs. The Pegasus ULD® features advanced composite materials, making it lighter and more damage-resistant than traditional containers, along with an integrated telemetry system for real-time monitoring. A long-term partnership with AEROTUF aids in its development.

Sonoco ThermoSafe, a unit of Sonoco (NYSE: SON), has partnered with ACL Airshop to enhance the handling and repair of its Pegasus ULD bulk temperature-controlled containers. This agreement aims to speed up the global adoption of the Pegasus ULD, which is the first passive bulk temperature-controlled container for pharmaceuticals, allowing for efficient handling through customs. The Pegasus ULD features advanced telemetry and is designed to be lighter and more damage-resistant than traditional solutions. This partnership leverages ACL's extensive air cargo network to meet the growing demand for pharmaceutical transport solutions.

Sonoco (NYSE: SON) has acquired Can Packaging, a French designer and manufacturer of sustainable paper packaging, for €41.7 million (~$49 million). Founded in 1989, Can Packaging, which generates projected sales of €23 million (~$27 million) in 2020, operates two facilities in France and a research center. This acquisition enhances Sonoco’s sustainable packaging portfolio, adding patented technology for recyclable all-paper packages. Can Packaging's innovation center and intellectual property will drive the development of more recyclable packaging solutions aimed at European markets.

Sonoco ThermoSafe, a unit of Sonoco (NYSE: SON), announced the development of PharmaPortal™, a blockchain platform for pharmaceutical supply chain management. The platform aims to enhance asset traceability and data integration among participants, particularly for temperature-controlled drugs. It addresses inefficiencies in the $230B cold chain pharmaceutical market, which sees $35B in value losses annually. Collaborating with IBM, the initiative seeks to cultivate a trusted environment that secures data sharing across the pharmaceutical distribution sector.

Sonoco (NYSE: SON) released its 2019-20 Corporate Responsibility Report, detailing efforts in packaging sustainability and environmental initiatives. The report highlights a 1.0% reduction in greenhouse gas emissions and a 2.0% decrease in water usage over the past year. Sonoco plans an $83 million investment in its Hartsville, S.C. facility for a new recycled paperboard machine, expected to reduce electricity consumption and greenhouse gas emissions by 16%. The company aims to increase recycling rates and the use of post-consumer recycled resins in its packaging by 2025.

Sonoco (NYSE: SON) reported second-quarter 2020 results, revealing GAAP earnings per diluted share of $0.55, down from $0.80 in 2019. Net sales decreased to $1.25 billion from $1.36 billion, impacted by COVID-19 challenges, with a notable reduction in demand for industrial products. Adjusted base earnings were $0.79 per diluted share, compared to $0.95 in the previous year. The company generated $281 million in cash flow from operations, a significant increase from $40.1 million in 2019. Guidance for third-quarter base earnings is projected between $0.73 and $0.83 per diluted share.

On July 15, 2020, Sonoco (NYSE: SON) declared a quarterly dividend of $.43 per share, scheduled for payment on September 10, 2020, to shareholders of record by August 10, 2020.
This marks the 381st consecutive quarter of dividend payments, highlighting a strong commitment to shareholders since 1925. Sonoco has raised its dividend for 37 consecutive years, with a current yield of 3.3%, significantly above the S&P 500 Index. The company reported annualized net sales of approximately $5.4 billion and serves customers in 85 nations.