Sonoco Alcore S.a.r.l., a wholly owned subsidiary of Sonoco Products Co. (SON - Free Report) , has announced a price hike of up to 7% for paper-based tubes and cores in Europe. The price increase, which will be effective with shipments beginning in February 2018, has been made to counter price rise in OCC (old corrugated containers) in a number of European countries.
OCC prices across Europe have reportedly soared a whopping 250% over the past 10 years. This follows the continued rise in coreboard prices, stemming from strong demand and elevated recovered paper and energy costs. Higher OCC recovery rate will escalate OCC collection costs, along with rising transportation and labor costs. An increase in costs can adversely affect Sonoco’s business and financial results. The company also uses derivatives to mitigate some of the impact of raw material and energy-cost fluctuations.
Paperboard tubes and cores are the key elements of Sonoco’s Paper and Industrial Converted Products segment. The segment, which serves its markets through 177 plants on five continents, accounted for approximately 35% of Sonoco’s consolidated net sales in 2016.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Sonoco Alcore S.a.r.l., a wholly owned subsidiary of Sonoco Products Co. (SON - Free Report) , has announced a price hike of up to 7% for paper-based tubes and cores in Europe. The price increase, which will be effective with shipments beginning in February 2018, has been made to counter price rise in OCC (old corrugated containers) in a number of European countries.
OCC prices across Europe have reportedly soared a whopping 250% over the past 10 years. This follows the continued rise in coreboard prices, stemming from strong demand and elevated recovered paper and energy costs. Higher OCC recovery rate will escalate OCC collection costs, along with rising transportation and labor costs. An increase in costs can adversely affect Sonoco’s business and financial results. The company also uses derivatives to mitigate some of the impact of raw material and energy-cost fluctuations.
Paperboard tubes and cores are the key elements of Sonoco’s Paper and Industrial Converted Products segment. The segment, which serves its markets through 177 plants on five continents, accounted for approximately 35% of Sonoco’s consolidated net sales in 2016.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Get the latest research report on DE - FREE
Get the latest research report on SON - FREE
Get the latest research report on GPK - FREE
Get the latest research report on HEES - FREE