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Sonoco (SON) Announces Price Hike for Paperboard in Europe

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Sonoco Products Company (SON - Free Report) announced a €60-per-ton (£50 for the U.K. market) price hike for all grades of uncoated recycled paperboard sold in Europe. This move will help the company offset increased input costs resulting from general inflation and the current challenging economic situation.

The price increase will be effective for deliveries after Apr 15, 2024.

Sonoco will continue to constantly monitor the situation in Europe and take all necessary steps to serve its customers. The company’s focus on optimizing businesses through productivity improvement, standardization and cost control will also aid near-term results.

The company is implementing several synergy opportunities, including optimizing raw material purchases, leveraging indirect expenses, and coordinating supply-chain logistics. These factors will help meet Sonoco’s cost-saving target. It is focused on increasing investment in its core consumer and industrial businesses, and achieving an annual EBITDA of $1 billion by 2026.

SON reported adjusted earnings per share of $1.02 in the fourth quarter of 2023, missing the Zacks Consensus Estimate of $1.07. The figure was within the company’s guidance of $1.01-$1.16. The bottom line fell 20% from the prior-year quarter. Sonoco’s net sales were $1.64 billion, beating the Zacks Consensus Estimate of $1.59 billion. The top line, however, fell 2.4% year over year on lower volumes and pricing.

Price Performance

Sonoco’s shares have lost 0.1% in the past year against the industry’s growth of 11.1%.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Zacks Rank & Stocks to Consider

SON currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the Industrial Products sector are Cadre Holdings, Inc. (CDRE - Free Report) , Applied Industrial Technologies (AIT - Free Report) and Proto Labs, Inc. (PRLB - Free Report) . CDRE currently sports a Zacks Rank #1 (Strong Buy), and AIT and PRLB carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Cadre Holdings’ 2024 earnings is pegged at $1.15 per share. The consensus estimate for 2024 earnings has moved 6% north in the past 60 days and suggests year-over-year growth of 16.7%. The company has a trailing four-quarter average earnings surprise of 33%. CDRE shares have gained 72% in the past year.

Applied Industrial has an average trailing four-quarter earnings surprise of 13.9%. The Zacks Consensus Estimate for AIT’s 2024 earnings is pinned at $9.43 per share, which indicates year-over-year growth of 7.8%. Estimates have been unchanged in the past 60 days. The company’s shares have gained 43.3% in the past year.

The Zacks Consensus Estimate for Proto Labs’ 2024 earnings is pegged at $1.62 per share. The consensus estimate for 2024 earnings has moved 11% north in the past 60 days and suggests year-over-year growth of 1.9%. The company has a trailing four-quarter average earnings surprise of 42.2%. PRLB shares have gained 15.7% in the past year.

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