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Paper Recycling April 22, 2019 01:30:27 PM

Sonoco's Robust Q1 Earnings Exceeded High End of Guidance

Paul Ploumis
ScrapMonster Author
The operating profit from Consumer Packaging segment increased marginally from $61.1 million in Q1 ’18 to $62.1 million in the first quarter of 2019.

Sonoco's Robust Q1 Earnings Exceeded High End of Guidance

SEATTLE (Scrap Monster): Hartsville, South Carolina-headquartered diversified global packaging major Sonoco reported financial results for the first quarter ending March 31, 2019. The company’s net earnings remained more or less unchanged from the previous year at $0.73 per diluted share in Q1 ’19.

The operating profit from Consumer Packaging segment increased marginally from $61.1 million in Q1 ’18 to $62.1 million in the first quarter of 2019. Segment sales were up by 3.5%, mainly due to increased sales on account of recent acquisitions. The operating profit from the Display and Packaging segment zoomed from $1.7 million to $6.5 million over the previous year, whereas sales declined 3.6%. The operating profit from Paper and Industrial Converted Products too was up from $39.8 million in 2018 to $48.4 million. Also, a 3% jump was reported in operating profits by the Protective Solutions segment.

The company foresees the Q2 2019 base earnings to range between $0.93 and $0.99 per diluted share. The full year 2019 base earnings are likely to range between $3.52 and $3.62 per diluted share.

Rob Tiede, President and Chief Executive Officer, Sonoco said that the company’s solid first quarter results exceeded high end of its earnings guidance. The diverse mix of business helped the company navigate successfully through sluggish global economic conditions. Sonoco remains optimistic on various initiatives aimed at profitable growth, improved operating margins and strong free cash flow, Tiede added.

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