Sonoco Products 4Q profit rises on lower tax rate, volume growth

Sonoco Products 4Q profit up on volume growth

HARTSVILLE, S.C. — Packaging services provider Sonoco Products Co. said Wednesday that its fourth-quarter profit rose as its volume grew — and because its rate was lower than expected — and its stock rose 6 percent on the news.

The company, which also makes industrial and consumer products, increased its full-year adjusted earnings guidance in light of its projection that business conditions will improve and its pension expenses will fall.

Sonoco earned $47.1 million, or 46 cents per share, in the fourth quarter. That compares with $36 million, or 36 cents per share, a year earlier.

Excluding restructuring charges and other one-time items, it earned 58 cents per share. It had forecast earnings between 49 cents and 52 cents per share.

Analysts polled by Thomson Reuters, who typically exclude one-time items, on average predicted a profit of 50 cents per share.

Revenue for the three months that ended Dec. 31 rose to $1 billion from $934.6 million partly because the company sold more paper, consumer packaging and packaging services. This topped the $971 million Wall Street expected.

For the year, profit declined to $151.5 million, or $1.50 per share, from $164.6 million, or $1.63 per share, in the prior year.

Excluding one-time items, it earned $1.78 per share on revenue of $3.6 billion, down from $4.1 billion. Analysts expected full-year earnings of $1.53 per share on revenue of $3.57 billion.

For the new fiscal year, Sonoco anticipates earning $2 to $2.15 per share, and for the current quarter, it forecasts adjusted earnings of 40 cents to 45 cents per share. Analysts on average expect Sonoco to earn 42 cents per share for the first quarter and $2.03 for the year.

Shares of Sonoco gained $1.72, or 6.3 percent, to $28.94 by midday. Over the last year, the stock has traded between $16.70 and $31.36.