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 Products Company (NYSE: SON) has announced a strategic review of its Thermoformed & Flexible Packaging (TFP) business, part of its Consumer Packaging segment. This move aims to accelerate portfolio simplification, improve pro forma leverage, and increase shareholder value. The TFP business, a market leader in thermoformed and flexible packaging, generated $1.3 billion in revenue in 2023.
As a result of this expanded divestiture plan, Sonoco has modified its financing strategy for the pending Eviosys acquisition. The company now plans to use a combination of prepayable debt, longer-term bond financing, and/or cash on hand, eliminating the need for equity issuance. Sonoco expects to complete the strategic review of TFP in the fourth quarter of 2024.
Sonoco Products Company (NYSE: SON) reported its Q2 2024 financial results. Key highlights include:
- GAAP net income of $91 million, down 21% year-over-year
- Adjusted EBITDA of $262 million, down 5%
- Diluted EPS of $0.92, down 21%
- Adjusted EPS of $1.28, down 7%
- Net sales decreased 5% to $1.6 billion
- Strong productivity of $51 million in Q2, $102 million in H1 2024
- Free Cash Flow of $96 million in H1 2024
Sonoco announced an agreement to acquire Eviosys for $3.9 billion, expected to close in Q4 2024. The company reaffirmed its full-year 2024 guidance for Adjusted EBITDA, Adjusted EPS, and operating cash flow, excluding the Eviosys acquisition impact.
Paired Power has installed its PairTree EV charger for Sonoco (NYSE: SON), a global packaging manufacturer, in South Carolina. The PairTree is an off-grid solar electric vehicle charger that combines battery storage with solar power for day and night charging. It can provide emergency backup power during grid outages and reduce grid dependence.
Key features of PairTree include:
- U.S.-made solar canopy
- Quick installation (less than a day)
- Wind-rated up to 130 mph
- Fits standard 9x18 foot parking space
- No moving parts or ongoing maintenance
- One or two Level 2 EV charging ports
This installation aligns with Sonoco's commitment to sustainability and provides resilient, clean energy for employees with electric vehicles.
Sonoco Products Company (NYSE: SON), a leading global sustainable packaging company, has announced that it will release its second quarter 2024 financial results on Wednesday, July 31, 2024, after the market closes. The company will host a conference call to discuss these results on Thursday, August 1, 2024, at 9:30 a.m. Eastern Time.
Investors and analysts can access the live audio webcast of the call, along with supporting materials, on the Sonoco Investor Relations website. A replay of the webcast will be available for at least 30 days following the call. To participate via telephone, interested parties must register in advance to receive the dial-in number and a unique PIN for access.
Sonoco (NYSE: SON) has declared a $0.52 per share quarterly common stock dividend, payable on September 10, 2024, to shareholders of record as of August 9, 2024. This marks the 397th consecutive quarter and 99th year of dividend payments, dating back to 1925. It's also the 41st consecutive year of increased annualized dividends. Based on the July 16, 2024 closing price, Sonoco's dividend yield is approximately 3.6%, which is more than double the S&P 500 Index's dividend yield. This consistent dividend history demonstrates Sonoco's commitment to shareholder returns and financial stability.
KPS Capital Partners announced it will sell Eviosys to Sonoco Products Company for €3.615 billion (~$3.9 billion). Sonoco may pay up to $200 million in stock. The deal, expected to close by the end of 2024, requires regulatory approvals and other conditions. Eviosys, a leading metal packaging supplier in EMEA, employs 6,300 people across 44 facilities in 17 countries. It specializes in sustainable, infinitely recyclable metal packaging. KPS acquired Eviosys from Crown Holdings in 2021, boosting its profitability by 50% through strategic investments and transformation. Eviosys achieved significant sustainability milestones, including an EcoVadis Platinum rating. The sale reflects KPS' strategy of enhancing business value and is expected to benefit customers, employees, and investors of both Eviosys and Sonoco.
Sonoco Products Company (NYSE: SON) has announced a $3.9 billion acquisition of Eviosys, a leading European food can and aerosol packaging manufacturer. Expected to close by the end of 2024, the deal aims to create the world's top metal food can and aerosol packaging platform. Sonoco forecasts over $100 million in synergies within 24 months and anticipates the acquisition will significantly boost adjusted EPS by over 25% in 2025. The transaction aligns with Sonoco's portfolio transformation strategy, including a $1 billion divestiture plan to fund deleveraging efforts. Sonoco plans to maintain an investment-grade credit rating and reduce net leverage below 3.0x within two years. The acquisition is expected to be immediately accretive to adjusted EPS.
On June 17, 2024, Sonoco (NYSE: SON) announced a price increase of at least 6% for all paperboard converted products, effective July 10, 2024, in the United States and Canada. The affected products include tubes, cores, cones, and protective packaging. This decision is driven by rising costs for uncoated recycled paperboard (URB), Sonoco's primary raw material, as well as other inflationary pressures. The announcement was made by Mike Thompson, Vice President of Sales and Marketing for Sonoco’s North American Converted Paper Products Division.
On June 10, 2024, 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 from July 10, 2024. This adjustment is intended to offset rising input costs. For further information, interested parties can contact Lisa Weeks, Vice President of Investor Relations & Communications.
On June 6, 2024, Sonoco-Alcore announced a 7% price increase on all tube and core grades in the EMEA regions, effective June 15, 2024. The decision stems from ongoing inflationary pressures and rising costs, particularly in core board production. Karsten Kemmerling, Division VP of Sales & Marketing EMEA, emphasized the necessity of this price adjustment to maintain supply security and quality. Sonoco-Alcore, a subsidiary of Sonoco, operates 19 tube and core plants and five paperboard mills in Europe, including a major facility in Cirie, Italy.