Sonoco Announces Price Increase for Paperboard Tubes and Cores

Consolidated net sales of $868 million in the third quarter of 2017 were $92 million, or 12 percent higher than the 2016 third quarter. This increase was due to $57 million of higher prices and a more favorable product mix, and higher volume in the paper and packaging segment. Net sales in the distribution segment increased $8 million due to higher prices partially offset by lower volume. The Company's average mill selling price of $698 per ton in the third quarter of 2017 increased by $72 per ton, or nearly 12 percent, compared to the third quarter of 2016 due to higher domestic and export containerboard prices, and higher kraft paper prices. Net income of $30 million for the 2017 third quarter was $1 million lower than the 2016 third quarter. Click Read More below for additional information.

Second Quarter Financial Highlights and Recent Events * Total revenue increased by 8.7% to $51.8 million, from $47.7 million in the second quarter of 2020. * Envelope segment revenue was up 7.6% to $35.2 million, from $32.8 million in the second quarter of 2020. * Packaging and specialty products segment revenue increased by 11.1% to $16.6 million, from $14.9 million in the second quarter of 2020. * EBITDA1 at $8.6 million, up 24.1%, from $6.9 million in the second quarter of 2020. EBITDA margins stood at 16.5%, up from 14.5%. * Net Earnings at $3.4 million (or $0.12 per share), up from $1.9 million (or $0.07 per share) in the second quarter of 2020. * Recorded $0.8 million of assistance from the Canada Emergency Wage Subsidy (“CEWS”) program. * Purchased 488,100 shares for total consideration of $1.1 million as part of the Company’s Normal Course Issuer Bid (‘’NCIB’’). * Mary Chronopoulos was appointed CFO and Corporate Secretary effective May 31, 2021.

The investments are intended to streamline the upgrading of technology and renewable energy solutions. These include the acquisition of two top-of-the-range fluting machines for our packaging facilities in Oporto and Leiria packaging facilities, and we have upgraded a corrugator unit for optimal performance at our packaging facility in Lisbon with the installation of a 2,800mm (approximately 9.19 ft) wide Dry End. We have also invested in a large processing machine that is specifically intended for the heavy-duty marketplace and for corrugated cardboard solutions that are robust enough to transport heavy, large, or bulky products for industrial and agricultural sectors. DS Smith customers in the e-commerce sector are benefitting from the upgrading of machinery to produce padded paper envelopes, and designers have innovated a sustainable fibre-based alternative solution to plastic-based bubble-wrap.