Global packaging company Sonoco has reported a 7% increase in net sales in the second quarter 2012 of $1.2bn, compared to $1.13bn in the same period of 2011.
The rise was primarily due to sales from acquisitions of $124m, primarily related to Tegrant, and higher selling prices.
Net sales for the first six months of 2012 rose by 8% to $2.41bn as against net sales of $2.25bn in first half of 2011.
The company’s gross profits during the quarter increased to $217m, an increase from $191m in the corresponding period of 2011, due to productivity improvements and a positive price / cost relationship.
Sonoco’s gross profit increased by 12.5% year over year to $433.4m in the first half of 2012, compared to $385.3m during the same period of 2011.
Consumer Packaging segment’s net sales for the quarter stood at $477m, a decline from $490m in the second quarter of 2011, and sales for the Paper and Industrial Converted Products segment decreased to $475m, compared to $485m in 2011.
The Packaging Services segment reported sales of $108m in the quarter, falling from $126m in 2011 quarter, while the Protective Packaging segment posted sales of $142m, surging from $26m in the second quarter of 2011.
Sonoco chairman and chief executive officer Harris DeLoach Jr, commenting on the results, said, "Sonoco’s second quarter results met our expectations despite the continuing tough global economic conditions."
The company hopes to complete important growth projects in 2012, including the third-quarter start-up of its new rigid plastics container plant in Columbus, Ohio, and expects to meet its objective of achieving annualised synergies of $12m by the end of 2012.
Image: Sonoco posted a 7% rise in net sales in the second quarter of 2012. Photo: PRNewsFoto/Sonoco.