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Paper Recycling July 19, 2019 12:30:43 PM

Sonoco Delivers Solid Results Despite Slowdown in Market Demand

Paul Ploumis
ScrapMonster Author
The net sales for the quarter were $1.36 billion, down marginally from $1.37 billion during the comparable quarter in 2018.

Sonoco Delivers Solid Results Despite Slowdown in Market Demand

SEATTLE (Scrap Monster): Hartsville, S.C.-headquartered packaging solutions provider, Sonoco reported financial results for second quarter ending June 30, 2019.

The net sales for the quarter were $1.36 billion, down marginally from $1.37 billion during the comparable quarter in 2018. The Q2 earnings per diluted share were $0.80, as compared with $0.88 in Q2 2018. The base net income attributable to Sonoco in second quarter of 2019 was $0.95 per diluted share, compared with $0.93 per diluted share in Q2 2018.

Sonoco’s Consumer Packaging segment reported lower sales and operating profit when compared the corresponding quarter in 2018. However, operating margins improved marginally. The Paper and Industrial Converted Products segment sales were up by 3.6%, whereas the operating profit remained essentially flat. The Display and Packaging segment reported operating profit of $5.9 million in Q2 2019, as compared with the operating loss of $(0.6) million a year before.

ALSO READ: Sonoco Wins Top Honors for Packaging Excellence and Innovation at 2019 FPA Awards

Commenting on the results, Rob Tiede, President and Chief Executive Officer, said that the company’s diverse mix of businesses delivered solid operating results during Q2 this year, despite noted slowdown in demand in many markets and significant losses on account of damages to its major operations caused by unforeseen fires, floods and other events. The company reached a milestone by acquiring Corenso Holdings America, Inc. - a leading recycled paperboard manufacturer durign the quarter, he added.

Sonoco expects the base earnings for Q3 this year to range between $0.88 and $0.94 per diluted share. The full year 2019 base earnings are estimated to be in the range of $3.52 to $3.62 per diluted share. The operating cash flow guidance for the current year is being reduced from $600 million to $620 million down to $435 million-$455 million.

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