Sonoco reports Q3 EPS $1.92, consensus $1.93

Reports Q3 revenue $2.13B, consensus $2.15B. “I’m incredibly proud of our team’s strong operating performance in the third quarter as we achieved record top-line and bottom-line performance along with margin expansion despite challenging market conditions and higher than expected interest costs”, said Howard Coker, CEO. “Our Consumer Packaging segment sales and operating profit each grew 117% and adjusted EBITDA increased by 112%. Most of the improvement came from the addition of Metal Packaging EMEA and improved results from our Metal Packaging U.S. business. Our Industrial Paper Packaging segment improved operating profit by 28%, adjusted EBITDA by 21%, operating profit margin by approximately 336 basis points and adjusted EBITDA margin by approximately 359 basis points driven by year-over-year improvement in price/cost and productivity. In addition, we believe the recently announced sale of our ThermoSafe unit will substantially complete Sonoco’s (SON) transformation from a large portfolio of diversified businesses into a simplified structure with two core global business segments – Consumer Packaging and Industrial Paper Packaging. Proceeds from the sale, which is expected to close before year-end, are projected to further reduce Sonoco’s net leverage ratio.”