Published on 26 Mar 2024 on Zacks via Yahoo Finance
Sonoco (SON) Announces Price Hike for Paperboard in Europe
Sonoco Products Company SON announced a €60-per-ton (£50 for the U.K. market) price hike for all grades of uncoated recycled paperboard sold in Europe. This move will help the company offset increased input costs resulting from general inflation and the current challenging economic situation.The price increase will be effective for deliveries after Apr 15, 2024.Sonoco will continue to constantly monitor the situation in Europe and take all necessary steps to serve its customers. The company’s focus on optimizing businesses through productivity improvement, standardization and cost control will also aid near-term results.The company is implementing several synergy opportunities, including optimizing raw material purchases, leveraging indirect expenses, and coordinating supply-chain logistics. These factors will help meet Sonoco’s cost-saving target. It is focused on increasing investment in its core consumer and industrial businesses, and achieving an annual EBITDA of $1 billion by 2026.SON reported adjusted earnings per share of $1.02 in the fourth quarter of 2023, missing the Zacks Consensus Estimate of $1.07. The figure was within the company’s guidance of $1.01-$1.16. The bottom line fell 20% from the prior-year quarter. Sonoco’s net sales were $1.64 billion, beating the Zacks Consensus Estimate of $1.59 billion. The top line, however, fell 2.4% year over year on lower volumes and pricing.
Price Performance
Sonoco’s shares have lost 0.1% in the past year against the industry’s growth of 11.1%.