U.S. Markets closed

Sonoco (SON) Announces Price Hike for Paperboard in Europe

Zacks Equity Research

Sonoco Alcore S.a.r.l., a wholly owned subsidiary of Sonoco Products Company SON, has announced a price hike on all recycled paperboard grades sold in the company’s European region to combat constant and unprecedented rise in raw material costs.

Sonoco Alcore operates 29 tubes and cores plants, and five paperboard mills in Europe, including Sonoco’s largest European uncoated recycled paperboard mill in Italy. Sonoco manufactures paperboard primarily from recycled materials for both internal use and open-market sale.

Paperboard tubes and cores are the elements of the company’s Paper and Industrial Converted Products segment. The segment accounted for approximately 35% of Sonoco’s consolidated net sales in 2016. This segment serves its markets through 183 plants on five continents. Sonoco’s paper operations provide the primary raw material for the company’s fiber-based packaging.

Sonoco Products Company Price

 

Sonoco Products Company Price | Sonoco Products Company Quote

In order to cope with price adjustments in the European market, this consumer packaging company raised prices of recycled paperboard by $64 (€60) per metric ton. The price hike will be effective with shipments on or after Mar 17.

Sonoco also declared price increases for all paperboard tubes and cores in the U.S. and Canada by a minimum of 10%, to recover from persistent cost inflation, particularly in uncoated recycled paperboard.  The increase is effective with shipments beginning Apr 10.

In the last one year, Sonoco has underperformed the Zacks classified Containers-Paper/Plastic sub-industry with respect to price performance. The stock gained around 13.5%, while the industry rose 17.7% over the same time frame.


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

Better-ranked stocks in the same space include Brady Corp. BRC, Casella Waste Systems, Inc. CWST and Deere & Company DE. All the three stocks boast a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Brady Corporation has a positive average earnings surprise of 20.84% for the last four quarters. Casella Waste generated a remarkable positive average earnings surprise of 165.21% over the trailing four quarters. Deere & Company has delivered an average positive earnings surprise of 60.50% in the past four quarters.

Zacks' 2017 IPO Watch List

Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.

One has driven from 0 to a $68 billion valuation in 8 years. Four others are a little less obvious but already show jaw-dropping growth. Download this IPO Watch List today for free >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Sonoco Products Company (SON): Free Stock Analysis Report
 
Deere & Company (DE): Free Stock Analysis Report
 
Casella Waste Systems, Inc. (CWST): Free Stock Analysis Report
 
Brady Corporation (BRC): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research