Sonoco Achieved Solid Results Despite Challenging Market Conditions

SEATTLE (Scrap Monster): Hartsville, S.C.-based packaging major, Sonoco delivered solid results for the fourth quarter and full-year 2019, amidst challenging market conditions.

During Q4 ’19, the company reported net sales of $1.3 billion, which is down by 3.4% from the previous year quarter. The net income too reduced from $77.7 million or $0.77 per diluted share in Q4 ’18 to $44.9 million or $0.44 per diluted share. The gross profits recorded 2.9% year-on-year decline to $246.9 million.

Meantime, Sonoco’s net sales at $5.37 billion in 2019, was down from $5.39 billion in 2018. The net income in 2019 was $291.8 million or $2.88 per diluted share. This compares with $313.6million or $3.10 per diluted share in 2018. The yearly gross profits hit record highs of $1,057.8 million.

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The company base earnings for the initial quarter of 2020 to range between $0.83 and $0.89 per diluted share. The full year 2020 base earnings are likely to be in the range $3.60 to $3.70 per diluted share. The cash flow from operations are projected to range between $625 million to $645 million.

Commenting on the results, Howard Coker, President and Chief Executive Officer, Sonoco noted that it achieved better than the mid-point of its base earnings guidance in Q4 ’19.  However, the company managed to deliver solid results in 2019, he added.