Sonoco Q2 2021 Earnings Report
Key Takeaways
Sonoco reported a GAAP net loss of $(3.34) per diluted share for Q2 2021, primarily due to pension settlement charges. However, base earnings were $0.84 per diluted share, within the company's guidance range. Net sales increased by 11% to $1.38 billion, driven by volume/mix improvements and higher selling prices.
GAAP net loss per diluted share was $(3.34), compared to earnings per diluted share of $0.55 in 2020.
Base earnings per diluted share were $0.84, compared to $0.79 in 2020, within the guidance range of $0.82 to $0.88.
Net sales increased by 11% to $1.38 billion, compared to $1.25 billion in 2020.
The company expects third quarter base earnings per diluted share to be in a range of $0.87 to $0.93 and expects full-year base earnings per diluted share to be in a range of $3.50 to $3.60.
Sonoco
Sonoco
Sonoco Revenue by Segment
Forward Guidance
The Company projects third quarter and full-year 2021 base earnings to be in the range of $0.87 to $0.93 and $3.50 to $3.60 per diluted share, respectively.
Positive Outlook
- Business will continue to benefit from the post-pandemic economic recovery.
- Consumer-related businesses volumes to remain above pre-pandemic levels.
- Further recovery in industrial-served markets.
- Historically high backlogs for uncoated recycled paperboard in the U.S. and Canada.
- Demand for global tubes, cores and cones strengthening to pre-pandemic levels.
Challenges Ahead
- Continuing battle to manage escalating raw material and non-material inflation.
- Currently behind the price/cost curve in several of our businesses.
- Unprecedented uncertainty regarding raw material and non-material inflation.
- Impact of the COVID-19 pandemic on global supply chains.
- Other risks and uncertainties.
Revenue & Expenses
Visualization of income flow from segment revenue to net income