(RTTNews) - Sonoco Products Co. (SON) reported a decline in Q2 profit, reflecting lower sales impacted by negative volume/mix, a significant negative price/cost relationship due to rising recovered paper costs that primarily impacted its Paper and Industrial Converted Product segment along with the negative impact of foreign exchange translation, increased interest expense and a higher effective tax rate.
The company's Q2 net income was $55.2 million or $0.55 per share compared to $81.2 million or $0.80 per share last year.
Base earnings totaled $80.1 million or $0.79 per share compared to $96.5 million or $0.95 per share reported a year ago.
Net sales for the quarter amounted to $1.25 billion, lower than the previous year's sales of $1.36 billion.
Analysts polled by Thomson Reuters expected earnings of $0.78 per share on revenue of $1.32 billion for the quarter. Analysts' estimate typically exclude certain special items.
Looking ahead, the company expects Q3 base earnings to be in the range of $0.73 - $0.83 per share, versus the prior year's base earnings of $0.97 per share. Eight Wall Street analysts have a consensus earnings estimate of $0.81 per share for the quarter.
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