Sonoco Products Company Announces Unaudited Consolidated Earnings Results for the First Quarter Ended March 29, 2015; Provides Earnings Guidance for the Second Quarter of 2015; Reiterates Earnings Guidance Fiscal Year 2015; Reports Asset Impairment Charges for the First Quarter Ended March 29, 2015
Apr 16 15
Sonoco Products Company announced unaudited consolidated earnings results for the first quarter ended March 29, 2015. For the quarter, the company reported net sales of $1,203,264,000 against $1,185,626,000 a year ago. Income before interest and income taxes was $127,141,000 against $86,561,000 a year ago. Income before income taxes and equity in earnings of affiliates was $113,920,000 against $73,918,000 a year ago. Income before equity in earnings of affiliates was $86,782,000 against $50,749,000 a year ago. Net income attributable to the company was $87,920,000 or $0.86 per diluted share against $52,302,000 or $0.50 per diluted share a year ago. Net cash provided by operating activities was $57,489,000 against $45,464,000 a year ago. Purchase of property, plant and equipment, net was $39,354,000 against $35,418,000 a year ago. Non-GAAP Income before interest and income taxes was $95,405,000 against $88,577,000 a year ago. Non-GAAP income before income taxes was $82,184,000 against $75,934,000 a year ago. Non-GAAP income before equity in earnings of affiliates was $55,967,000 against $52,345,000 a year ago. Non-GAAP net income attributable to the company was $57,090,000 or $0.56 per diluted share against $53,894,000 or $0.52 per diluted share a year ago. The $0.30 per share gain was related to Fox River-related environmental claims/litigation together with a gain on the sale of two metal ends and closures plants, partially offset by costs related to acquisition and restructuring activities. Free cash flow for the first quarter was $15 million, compared with a negative $22 million in 2014. Both operating cash flow and free cash flow improved modestly this quarter due primarily to higher GAAP net income, excluding the net non-cash benefit of the reversal of Fox River environmental reserves, together with reduced domestic pension contributions and less significant increases in working capital during the quarter.
For the first quarter, the company reported asset impairment charges of $275,000 against $492,000 a year ago.
For the second quarter of 2015, the company expects second quarter 2015 base earnings to be in the range of $0.64 to $0.69 per diluted share. The company's second quarter 2014 base earnings were $0.63 per diluted share.
Annual 2015, the company reiterated base earnings per diluted share to be in the range of $2.60 to $2.70. The company's 2015 guidance anticipates a 32% effective tax rate for the year. Free cash flow is expected to be approximately $140 million in 2015, compared to $120 million in 2014, and is $10 million lower than previous guidance due to the company's recently announced 9.4% increase in the per-share dividend which is expected to be paid to shareholders in 2015.
Sonoco Announces Quarterly Common Stock Dividend, Payable on June 10, 2015
Apr 15 15
The board of directors of Sonoco declared a $0.35 per share quarterly common stock dividend, a 9.4% increase from the previous quarterly dividend of $0.32 per share. The dividend will be paid on June 10, 2015, to shareholders of record as of May 16, 2014.
Sonoco Products to Invest $51.9 Million on Growth Projects for Consumer Packaging Division
Apr 15 15
Sonoco Products Company will invest approximately $51.9 million on several significant growth projects to increase its production capabilities and to support R&D innovation for its consumer packaging business. The projects include a $20 million spend to purchase equipment for the company's Franklin, Ohio plant and Waco, Texas plant; a $20 million investment to build a new composite can facility in Kuala Lumpur, Malaysia; and an $11.9 million investment to build a new research and development studio in Hartsville, South Carolina for the company's Innovative Packaging Solutions business.
Sonoco Products Co. Elects Richard G. Kyle to Board of Directors
Feb 23 15
Sonoco Products Co. announced that Richard G. Kyle was elected to the Sonoco board of directors on February 10, 2015, with an effective start date of February 19, 2015. Mr. Kyle is president, chief executive officer and board member of The Timken Company. Prior to being elected president and CEO in 2014, Mr. Kyle served as chief operating officer of Timken's Bearings and Power Transmission Group. Mr. Kyle has been appointed to serve on the Audit and Financial Policy Committees of the Board.