Sonoco has reported fourth quarter 2009 earnings of $.46 per diluted share, compared with $.36 per diluted share reported in the fourth quarter of 2008. Full-year earnings for 2009 were $1.50 per diluted share, compared with $1.63 per diluted share in 2008.
"We performed well in the fourth quarter as Companywide volumes grew year over year and we benefited from strong productivity. Base earnings per diluted share exceeded the top end of our previously announced guidance of $.49 to $.52 due to a slightly improved operating environment and a lower than anticipated effective tax rate," said Harris E. DeLoach Jr., chairman, president and chief executive officer. "Operating profits from our Consumer Packaging segment were a record high, continuing a string of eight consecutive quarters of year-over-year improvement. Results in our Tubes and Cores/Paper segment were lower as contractual sales price resets last year occurred immediately prior to a significant drop in the cost of old corrugated containers (OCC), our primary raw material, creating a favorable price/cost relationship in 2008 that was not repeated in 2009. On the positive side, the Tubes/Cores and Paper segment benefited from productivity improvements and improved volume."
Net sales for the fourth quarter were $1.0 billion, compared with $935 million in the same quarter of last year.
"Sales increased 7 percent during the quarter due to improved volumes in our Tube and Cores/Paper, Consumer Packaging and Packaging Services segments along with the favorable impact of foreign currency rates, partially offset by lower selling prices in the Tubes and Cores/Paper segment," DeLoach said.
Cash generated from operations in the fourth quarter was $33.1 million, compared with $69.2 million in the same period of 2008. During the current quarter, the Company made a voluntary contribution of $100 million to its U.S. pension plan which, after tax, reduced cash from operations for the full year by approximately $63 million. Absent the pension contribution, operating cash flow would have improved year over year due to higher earnings and changes in other assets and liabilities. Capital expenditures and cash dividends were $21.3 million and $27.0 million, respectively, during the fourth quarter, compared with $31.6 million and $26.9 million, respectively, the same period of 2008.
