Sonoco Implementing Price Increase for Uncoated Recycled Paperboard
Rhea-AI Summary
Sonoco (NYSE: SON) is increasing prices for all grades of uncoated recycled paperboard (URB) by $50 per ton, effective March 1, 2021, across the United States and Canada. This decision follows the ongoing challenges of extended order backlogs at its mills and rising input costs, notably freight. Sonoco, with annual sales of approximately $5.4 billion and a workforce of 23,000, emphasizes its commitment to sustainability and its position as a leader in the packaging sector.
Positive
- Price increase of $50 per ton for URB could improve revenue amid rising costs.
- Continued demand indicated by extended order backlogs at mills.
Negative
- Rising input costs, particularly freight, may pressure profit margins.
News Market Reaction – SON
On the day this news was published, SON gained 0.55%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
HARTSVILLE, S.C., Feb. 01, 2021 (GLOBE NEWSWIRE) -- Sonoco (NYSE: SON) today announced it is implementing a
Sonoco cited the continuation of extended order backlogs at its mills along with continuing inflation of input costs, especially freight, as the drivers for this pricing action.
About Sonoco
Founded in 1899, Sonoco (NYSE: SON) is a global provider of a variety of consumer packaging, industrial products, protective packaging, and displays and packaging supply chain services. With annualized net sales of approximately