June 20, 2013
Sonoco Products (NYSE: SON) makes packaging - the cardboard and plastic, often painted with a company's branding, that encases a toy or other consumer item. Sonoco operates in two broad end-use markets: consumer and industrial, which each represent about half of the company's sales respectively. Demand for the company’s product is mostly driven by consumer use of non-durable goods, things that don’t last a long time or need to be replenished on a regular basis, such as food or pharmaceuticals. A third of the company's sales come from outside the US. The company earned $3.6 billion in revenue and $151 million in net income in 2009.[1]
A sluggish U.S. economy has had negative impacts on Sonoco's bottom line. When spending on goods that use Sonoco's packaging goes down, Sonoco's revenues suffer. In 2009, the company's net sales fell by 13% due to lower sales volume.[1]
(Read more at Wikinvest
) - Business Overview
- Product Segments[2]
- Consumer Packing (42% of net sales)
- Tubes and Cores/Paper (38% of net sales)
- Packaging Services (12% of net sales)
- All Other Sonoco (9% of net sales)
- Business Growth
- FY 2009 (ended December 31, 2009)[1]
- Trends and Forces
- A Slowing Economy Means Less Demand for Sonoco’s Products
- Sonoco Susceptible to Rising Commodities and Energy Prices
- Environmental Regulations and Liabilities
- Competitors
- References
