ThermoSafe Brands, a business unit of
Sonoco Products Co.
(
SON
), has introduced a series of temperature-assured,
polyurethane-insulated pallet shippers for the U.S. and European
markets. The pallet shippers will be used in distributing
pharmaceuticals and other biotechnology products.
ThermoSafe Brands provides temperature assurance solutions for the
pharmaceutical, biotech, medical, food service, food processing and
gift food industries. The ThermoSafe SPS Series Pallet Shippers
provide off-the-shelf convenience and easy assembly that meet the
requirements of high-value life science products.
The newly introduced pallet shippers use Sonoco's patented SonoPost
components. These components, first of its kind, provide structural
stability and air flow for top and bottom refrigerants.
Moreover, the pallet shippers have fewer packaging components
having self-supporting panels and can be assembled quickly. The
pallet shippers are perfect for third-party logistics and shipments
in bulk of biologic products.
Earlier, in January, Sonoco hiked the prices of products of
ThermoSafe Brands by 4%-7%. The price hike encompassed the products
of expanded polystyrene (EPS) and polyurethane (PUR) as well as
custom and catalogued shipper solutions and components traded
globally.
The price rise was necessitated chiefly by soaring cost of raw
materials, labor, energy and transportation. The company failing to
offset cost escalations with Lean initiatives was compelled to mark
up its products.
Sonoco has recently been facing operational challenges at its North
American uncoated recycled paperboard mills. This has resulted in
unscheduled downtime and higher costs.
Besides, lower-than-expected volumes in the consumer and industrial
packaging businesses are headwinds for the company. As a result, it
has trimmed its earnings per share estimates for third-quarter 2012
to a range of 51 cents to 53 cents from the previous guidance of 62
cents to 66 cents.
Sonoco retains a short-term Zacks #4 Rank (Sell). We have a
long-term Neutral recommendation on the stock.
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