Sonoco (SON) Tops Q4 EPS by 2c; Guides Roughly In-Line

Sonoco (NYSE: SON) reported Q4 EPS of $0.66, $0.02 better than the analyst estimate of $0.64. Revenue for the quarter came in at $1.32 billion versus the consensus estimate of $1.29 billion.

Sonoco sees Q1 2015 EPS of $0.56-$0.61, versus the consensus of $0.60.

Sonoco sees FY2015 EPS of $2.60-$2.70, versus the consensus of $2.71.

Commenting on the Company's fourth quarter results, President and Chief Executive Officer Jack Sanders said, "Sonoco's balanced portfolio of businesses showed strong improvement during the fourth quarter in a number of areas. Consolidated sales grew 8 percent to a new record due to the combination of volume gains and a major acquisition. Gross profits and base earnings also reached records for the quarter, driven by solid volume growth, strong manufacturing productivity, a positive price/cost relationship and lower pension expense. Quarterly results were also aided by the reimbursement of excess costs incurred in prior quarters related to a materials issue in our flexible packaging business. Each of the Company's segments reported improved operating profits despite higher year-over-year labor, maintenance, management incentive and other costs. "

"Our Consumer Packaging segment reported record results in the quarter with operating profits up 21 percent over last year's quarter due primarily to productivity improvements, volume growth throughout the segment and lower pension expense. Current quarter results reflect the flexible packaging excess cost reimbursement which benefitted productivity. In addition, the Weidenhammer Packaging Group acquisition completed on October 31, 2014, provided modest accretion to operating profits, which excludes acquisition-related inventory step-up charges. Operating profits in our Display and Packaging segment rose 49 percent in the quarter due primarily to strong volume growth in U.S. display and international packaging fulfillment activity and manufacturing productivity improvements."

"Operating profits in our Paper and Industrial Converted Products segment exceeded the prior year quarter by nearly 11 percent due primarily to volume growth, a positive price/cost relationship and modest manufacturing productivity improvements, and lower pension expense, partially offset by higher operating costs and incentives. Excluding South America and Asia, the Company experienced volume gains throughout the segment. In our Protective Solutions segment, operating profits increased more than 10 percent due to volume growth in temperature-assured products, consumer protective packaging and automotive components, along with modest productivity improvements."

For earnings history and earnings-related data on Sonoco (SON) click here.

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