Consumer packaging company
Sonoco Products Co.
) declared that it will increase the price of all paperboard
tubes and cores by 5%. The price hike will be effective from July
15, 2013 relating to the shipments to the US and Canada.
Paperboard tubes and cores are the elements of Sonoco's Paper
and Industrial Converted Products segment. The company hiked the
price in order to recover the recently announced paperboard price
Last week, Sonoco announced a $40 per ton price hike on all
grades of uncoated recycled paperboard (URB) to combat increasing
recovered paper and other raw material costs.
Sonoco manufactures paperboard, primarily from recycled
materials for both internal use and open market sale. The
majority of the company's revenues comes from consumer packaging
and Paper and Industrial Converted Products segment.
Sonoco Products, which is a global manufacturer of consumer
and industrial packaging products along with
Bemis Company, Inc
Graphic Packaging Holding Company
), posted first-quarter 2013 adjusted earnings of 50 cents per
share, declined 4% year over year, while net sales dipped 3% to
The year-over-year decline in sales was attributable to lower
volume and selling prices in Consumer Packaging and Paper and
Industrial Converted Products segments, partially offset by
volume improvement and sales price gains in the Display and
Packaging and Protective Solutions segments.
Sonoco expects to increase sales to $5.5 billion to $6 billion
over the next three to four years. However, uncertainty among its
customers, given the slow recovery in the U.S. and ongoing
European weakness, remains a headwind for the company.
South Carolina-based Sonoco is a global provider of a variety
of consumer packaging, industrial products, protective packaging
and packaging supply chain services. Sonoco is also the largest
producer of paper-based tubes and cores in North America.
Sonoco Products currently retains a short-term Zacks Rank #3
APTARGROUP INC (ATR): Free Stock Analysis
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SONOCO PRODUCTS (SON): Free Stock Analysis
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