Sonoco Reports Fourth Quarter and Full-Year 2012 Results
(Logo: http://photos.prnewswire.com/prnh/20120403/CL80773LOGO )
Fourth Quarter Highlights
- Fourth quarter 2012 GAAP earnings per diluted share were
$.42 , compared with$.29 in 2011. - Fourth quarter 2012 GAAP results include
$.14 per diluted share in net after-tax charges related to restructuring activities and taxes on the repatriation of cash, partially offset by excess insurance settlement gains. Fourth quarter 2011 GAAP results included a net after-tax charge of$.17 per diluted share related to restructuring activities, acquisition items and income tax reserve adjustments, partially offset by excess insurance settlement gains. - Base net income attributable to Sonoco (base earnings) for fourth quarter 2012 was
$.56 per diluted share, compared with$.46 in 2011. (See base earnings definition and reconciliation later in this release.) Sonoco previously provided fourth quarter base earnings guidance of$.52 to $.56 per diluted share. - Fourth quarter 2012 net sales were a record
$1.18 billion , up 4 percent, compared with$1.13 billion in 2011.
Full-Year Results
- Full-year 2012 GAAP earnings per diluted share were
$1.91 , compared with$2.13 in 2011. - Full-year 2012 GAAP earnings include
$.30 per diluted share in after-tax restructuring charges and tax items, partially offset by excess insurance settlement gains. In comparison, 2011 GAAP results include$.16 per diluted share in after-tax restructuring charges, acquisition expenses and acquisition inventory step-up costs, partially offset by net positive adjustments to valuation allowances on deferred tax assets. - Full-year 2012 base earnings were
$2.21 per diluted share, compared with$2.29 in 2011. Sonoco previously provided full-year 2012 guidance of$2.17 to $2.21 per diluted share. - Net sales reached a record
$4.79 billion , up 6 percent, compared with$4.50 billion in 2011. - Free cash flow totaled
$101.2 million in 2012, compared with a use of cash of$31.9 million in 2011. (Free cash flow is defined as cash flow from operations minus net capital expenditures and dividends.)
Increased 2013 Earnings Guidance and Debt Repayment
- Full-year 2013 base earnings guidance is expected to be
$2.26 to $2.34 per diluted share, reflecting an improvement of$.02 per share, after tax, in expected pension expense compared to prior guidance. Base earnings for the first quarter of 2013 are estimated to be$.50 to $.54 per diluted share. - 2013 free cash flow is projected to be approximately
$130 million . - In
January 2013 , Sonoco repaid the$135 million outstanding balance of the term loan it incurred in conjunction with the 2011Tegrant Holding Corp. (Tegrant) acquisition, together with approximately$98 million of commercial paper, using accumulated cash repatriated from outsidethe United States .
Fourth Quarter Review
Commenting on the Company's fourth quarter results, Chairman and Chief Executive Officer
"Operating profits from our Paper and Industrial Converted Products segment rose 23 percent in the fourth quarter as the segment generated its strongest fourth quarter earnings performance since 2007. The segment's improvement was due to higher volume and strong productivity gains. Tons produced in the Company's
"Our Protective Solutions segment reported an 82 percent year-over-year improvement in operating profits during the fourth quarter driven largely by last year's addition of Tegrant.
"Our
GAAP net income attributable to Sonoco in the fourth quarter was
Fourth quarter 2012 base earnings excluded after-tax charges of
Additional information about base earnings and base earnings per diluted share, along with reconciliation to the most closely applicable GAAP financial measures, is provided later in this release.
Net sales for the fourth quarter were
Gross profits were
Cash generated from operations in the fourth quarter was
2012 Results
Net sales for 2012 increased 6 percent to a record
2012 base earnings were
Gross profit increased 11.5 percent year over year to
Cash generated from operations in 2012 was
As of
In
2012 Overview
According to DeLoach, "Our performance in 2012 was not what we expected when we began the year. We did not fully anticipate the negative impact that rising commodity costs would have on consumers' spending for packaged food, or the extent to which the European recession and slowing emerging market economies would reduce demand in our industrial-related businesses. We also incurred some self-inflicted operating issues which increased costs and reduced productivity. That said, we generated record sales and gross profits in 2012 and significantly improved free cash flow. In addition, we made significant strides in integrating Tegrant and further expanding our new Protective Solutions segment.
"As we enter 2013, the global economic outlook remains cloudy. However, we have addressed our recent operating missteps and are poised to take advantage of any improvement in market conditions. The repatriation of offshore cash, and the related pay down of outstanding debt, provides us with improved financial flexibility to invest in the business and/or return cash to our shareholders. In addition, we expect to use free cash flow in 2013 to further reduce debt by about
Corporate
Net interest expense for the fourth quarter of 2012 increased to
Sonoco expects first quarter 2013 base earnings to be in the range of
Commenting on the Company's outlook,
Segment Review
Sonoco reports its financial results in four operating segments:
Sonoco's
Fourth quarter 2012 sales for the segment were
Sales declined in the quarter due primarily to lower overall volumes and negative changes in product mix. Segment operating profit declined 16 percent in the quarter as productivity improvements were unable to offset negative volume and product mix changes along with higher pension, labor and other expenses.
Paper and Industrial Converted Products
The Paper and Industrial Converted Products segment includes the following products: high-performance paper and composite paperboard tubes and cores; fiber-based construction tubes and forms; wooden, metal and composite wire and cable reels and spools; and recycled paperboard, linerboard, corrugating medium, recovered paper and other recycled materials.
Fourth quarter 2012 sales for the segment were
Sales declined less than 1 percent in the fourth quarter as lower recovered paper prices in the Company's recycling operations were offset by improved volumes in trade paper sales and recycling. Operating profits improved 23 percent year over year due to strong productivity improvement, volume gains and a positive change in the mix of business. These positive factors were partially offset by a negative price/cost relationship and higher pension, labor, freight and other costs.
Fourth quarter 2012 sales for this segment were
Sales increased 19 percent from last year's fourth quarter due to low-margin volume growth, primarily in international packaging fulfillment activities. Quarterly operating profit for the segment increased 165 percent year over year due primarily to an improved mix of business as productivity improvements were offset by higher labor and other costs.
Protective Solutions
The Protective Solutions segment includes the following products: custom-engineered, paperboard-based and expanded foam protective packaging and components; temperature-assurance packaging; and retail security packaging.
Fourth quarter 2012 sales were
The year-over-year improvement in this segment's quarterly sales and operating profits was attributable to Tegrant and largely driven by the timing of the acquisition. However, higher volume and an improved mix of business during the period following the anniversary of its
Conference Call Webcast
Sonoco will host its regular quarterly conference call today,
About Sonoco
Founded in 1899, Sonoco is a global provider of a variety of consumer packaging, industrial products, protective packaging and packaging supply chain services. With annualized net sales of approximately
Forward-looking Statements
Statements included herein that are not historical in nature, are intended to be, and are hereby identified as "forward-looking statements" for purposes of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended. The words "estimate," "project," "intend," "expect," "believe," "consider," "plan," "strategy," "opportunity," "target," "anticipate," "objective," "goal," "guidance," "outlook," "forecast," "future," "will," "would," or the negative thereof, and similar expressions identify forward-looking statements.
Forward-looking statements include, but are not limited to, statements regarding offsetting high raw material costs, improved productivity and cost containment, adequacy of income tax provisions, refinancing of debt, adequacy of cash flows, anticipated amounts and uses of cash flows, effects of acquisitions and dispositions, adequacy of provisions for environmental liabilities, financial strategies and the results expected from them, continued payments of dividends, stock repurchases, producing improvements in earnings, financial results for future periods and creation of long-term value for shareholders.
Such forward-looking statements are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management. Such information includes, without limitation, discussions as to guidance and other estimates, expectations, beliefs, plans, strategies and objectives concerning our future financial and operating performance. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict.
Therefore, actual results may differ materially from those expressed or forecasted in such forward-looking statements. The risks and uncertainties include, without limitation:
- availability and pricing of raw materials;
- success of new product development and introduction;
- ability to maintain or increase productivity levels and contain or reduce costs;
- ability to manage the mix of business to take advantage of growing markets while reducing cyclical effects of some of the Company's existing business on operating results;
- international, national and local economic and market conditions;
- availability of credit to us, our customers and/or its suppliers in needed amounts and/or on reasonable terms;
- fluctuations in obligations and earnings of pension and postretirement benefit plans;
- pricing pressures, demand for products and ability to maintain market share;
- continued strength of our paperboard-based tubes and cores, and composite can operations;
- anticipated results of restructuring activities;
- resolution of income tax contingencies;
- ability to successfully integrate newly acquired businesses into the Company's operations;
- ability to win new business and/or identify and successfully close suitable acquisitions at the levels needed to meet growth targets;
- rate of growth in foreign markets;
- foreign currency, interest rate and commodity price risk and the effectiveness of related hedges;
- liability for and anticipated costs of environmental remediation actions;
- accuracy of assumptions underlying projections related to goodwill impairment testing, and accuracy of management's assessment of goodwill impairment;
- actions of government agencies and changes in laws and regulations affecting the Company;
- loss of consumer or investor confidence; and
- economic disruptions resulting from terrorist activities.
The Company undertakes no obligation to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events discussed herein might not occur.
Additional information concerning some of the factors that could cause materially different results is included in the Company's reports on forms 10-K, 10-Q and 8-K filed with the
References to our Website Address
References to our website address and domain names throughout this release are for informational purposes only, or to fulfill specific disclosure requirements of the Securities and Exchange Commission's rules or the New York Stock Exchange Listing Standards. These references are not intended to, and do not, incorporate the contents of our website by reference into this release.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) |
|||||||||
(Dollars and shares in thousands except per share) |
|||||||||
THREE MONTHS ENDED |
TWELVE MONTHS ENDED |
||||||||
Dec. 31, 2012 |
Dec. 31, 2011 |
Dec. 31, 2012 |
Dec. 31, 2011 |
||||||
Net sales |
$ 1,175,870 |
$ 1,129,573 |
$ 4,786,129 |
$ 4,498,932 |
|||||
Cost of sales |
971,870 |
944,829 |
3,942,497 |
3,742,149 |
|||||
Gross profit |
204,000 |
184,744 |
843,632 |
756,783 |
|||||
Selling, general and administrative expenses |
112,025 |
105,982 |
463,715 |
397,477 |
|||||
Restructuring/Asset impairment charges |
8,694 |
12,883 |
32,858 |
36,826 |
|||||
Income before interest and income taxes |
$ 83,281 |
$ 65,879 |
$ 347,059 |
$ 322,480 |
|||||
Net interest expense |
14,464 |
12,829 |
59,985 |
38,074 |
|||||
Income before income taxes and equity earnings of affiliates |
68,817 |
53,050 |
287,074 |
284,406 |
|||||
Provision for income taxes |
30,558 |
27,120 |
103,759 |
78,423 |
|||||
Income before equity in earnings of affiliates |
38,259 |
25,930 |
183,315 |
205,983 |
|||||
Equity in earnings of affiliates, net of tax |
4,569 |
3,598 |
12,805 |
12,061 |
|||||
Net income |
42,828 |
29,528 |
196,120 |
218,044 |
|||||
Net loss/(income) attributable to noncontrolling interests |
(45) |
(13) |
(110) |
(527) |
|||||
Net income attributable to Sonoco |
$ 42,783 |
$ 29,515 |
$ 196,010 |
$ 217,517 |
|||||
Weighted average common shares outstanding – diluted |
102,648 |
102,006 |
102,573 |
102,173 |
|||||
Diluted earnings per common share |
$0.42 |
$0.29 |
$1.91 |
$2.13 |
|||||
Dividends per common share |
$0.30 |
$0.29 |
$1.19 |
$1.15 |
|||||
FINANCIAL SEGMENT INFORMATION (Unaudited) |
|||||||||
(Dollars in thousands) |
|||||||||
THREE MONTHS ENDED |
TWELVE MONTHS ENDED |
||||||||
Dec. 31, 2012 |
Dec. 31, 2011 |
Dec. 31, 2012 |
Dec. 31, 2011 |
||||||
Net sales |
|||||||||
Consumer Packaging |
$ 463,871 |
$ 485,041 |
$ 1,912,621 |
$ 1,977,298 |
|||||
Paper and Industrial Converted Products |
448,152 |
451,784 |
1,840,827 |
1,892,220 |
|||||
Display and Packaging |
130,365 |
109,135 |
477,632 |
471,445 |
|||||
Protective Solutions |
133,482 |
83,613 |
555,049 |
157,969 |
|||||
Consolidated |
$ 1,175,870 |
$ 1,129,573 |
$ 4,786,129 |
$ 4,498,932 |
|||||
Income before interest and income taxes: |
|||||||||
Segment operating profit: |
|||||||||
Consumer Packaging |
$ 40,107 |
$ 47,762 |
$ 176,768 |
$ 191,475 |
|||||
Paper and Industrial Converted Products |
36,245 |
29,427 |
141,351 |
138,207 |
|||||
Display and Packaging |
4,543 |
1,713 |
18,512 |
21,733 |
|||||
Protective Solutions |
9,494 |
5,203 |
38,797 |
15,228 |
|||||
Restructuring/Asset impairment charges |
(8,694) |
(12,883) |
(32,858) |
(36,826) |
|||||
Other non-base charges |
1,586 |
(5,343) |
4,489 |
(7,337) |
|||||
Consolidated |
$ 83,281 |
$ 65,879 |
$ 347,059 |
$ 322,480 |
|||||
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) |
|||||||||
(Dollars in thousands) |
|||||||||
THREE MONTHS ENDED |
TWELVE MONTHS ENDED |
||||||||
Dec. 31, 2012 |
Dec. 31, 2011 |
Dec. 31, 2012 |
Dec. 31, 2011 |
||||||
Net income |
$ 42,828 |
$ 29,528 |
$ 196,120 |
$ 218,044 |
|||||
Asset impairment charges |
2,551 |
3,513 |
8,427 |
12,518 |
|||||
Depreciation, depletion and amortization |
51,244 |
48,260 |
200,403 |
179,871 |
|||||
Fox River environmental reserves |
(1,476) |
(580) |
(2,796) |
(1,959) |
|||||
Pension and postretirement plan expense |
13,050 |
9,974 |
52,856 |
36,853 |
|||||
Pension and postretirement plan contribution |
(10,979) |
(18,406) |
(75,059) |
(142,097) |
|||||
Changes in working capital |
29,167 |
40,282 |
1,337 |
(62,860) |
|||||
Other operating activity |
(14,993) |
796 |
22,627 |
4,905 |
|||||
Net cash provided by operating activities |
111,392 |
113,367 |
403,915 |
245,275 |
|||||
Purchase of property, plant and equipment, net * |
(44,778) |
(47,561) |
(182,895) |
(162,251) |
|||||
Cost of acquisitions, exclusive of cash |
- |
(555,990) |
(503) |
(566,908) |
|||||
Debt proceeds, net |
135,841 |
545,925 |
85,748 |
660,865 |
|||||
Cash dividends |
(30,234) |
(29,003) |
(119,771) |
(114,958) |
|||||
Shares acquired under announced buyback |
- |
- |
- |
(46,298) |
|||||
Other, including effects of exchange rates on cash |
(280) |
2,496 |
11,067 |
1,549 |
|||||
Net increase in cash and cash equivalents |
171,941 |
29,234 |
197,561 |
17,274 |
|||||
Cash and cash equivalents at beginning of period |
201,143 |
146,289 |
175,523 |
158,249 |
|||||
Cash and cash equivalents at end of period |
$ 373,084 |
$ 175,523 |
$ 373,084 |
$ 175,523 |
|||||
* Prior year's data have been reclassified to conform to the current year's presentation |
|||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) |
|||||||||
(Dollars in thousands) |
|||||||||
Dec. 31, 2012 |
Dec. 31, 2011 |
||||||||
Assets |
|||||||||
Current Assets: |
|||||||||
Cash and cash equivalents |
$ 373,084 |
$ 175,523 |
|||||||
Trade accounts receivable, net of allowances |
619,761 |
606,785 |
|||||||
Other receivables |
36,311 |
43,378 |
|||||||
Inventories |
383,272 |
395,322 |
|||||||
Prepaid expenses and deferred income taxes |
87,468 |
90,702 |
|||||||
1,499,896 |
1,311,710 |
||||||||
Property, plant and equipment, net |
1,034,906 |
1,013,622 |
|||||||
Goodwill |
1,110,505 |
1,104,776 |
|||||||
Other intangible assets, net |
276,809 |
304,600 |
|||||||
Other assets |
253,949 |
258,091 |
|||||||
$ 4,176,065 |
$ 3,992,799 |
||||||||
Liabilities and Shareholders' Equity |
|||||||||
Current Liabilities: |
|||||||||
Payable to suppliers and others |
$ 764,322 |
$ 784,535 |
|||||||
Notes payable and current portion of long-term debt |
273,608 |
53,666 |
|||||||
Income taxes payable |
6,305 |
5,551 |
|||||||
$ 1,044,235 |
$ 843,752 |
||||||||
Long-term debt, net of current portion |
1,099,454 |
1,232,966 |
|||||||
Pension and other postretirement benefits |
461,881 |
420,048 |
|||||||
Deferred income taxes and other |
67,281 |
70,625 |
|||||||
Total equity |
1,503,214 |
1,425,408 |
|||||||
$ 4,176,065 |
$ 3,992,799 |
||||||||
Definition and Reconciliation of Non-GAAP Financial Measures
The Company's results determined in accordance with U.S. generally accepted accounting principles (GAAP) are referred to as "as reported" or "GAAP" results. Some of the information presented in this press release reflects the Company's "as reported" or "GAAP" results adjusted to exclude amounts related to restructuring initiatives, asset impairment charges, environmental charges, acquisition costs, excess insurance recoveries, losses from the early extinguishment of debt, and certain other items, if any, the exclusion of which management believes improves comparability and analysis of the underlying financial performance of the business. These adjustments result in the non-GAAP financial measures referred to in this press release as "Base Earnings" and "Base Earnings per Diluted Share.
These non-GAAP measures are not in accordance with, or an alternative for, generally accepted accounting principles and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Sonoco continues to provide all information required by GAAP, but it believes that evaluating its ongoing operating results may not be as useful if an investor or other user is limited to reviewing only GAAP financial measures. Sonoco uses these non-GAAP financial measures for internal planning and forecasting purposes, to evaluate its ongoing operations, and to evaluate the ultimate performance of each business unit against budget all the way up through the evaluation of the Chief Executive Officer's performance by the Board of Directors. In addition, these same non-GAAP measures are used in determining incentive compensation for the entire management team and in providing earnings guidance to the investing community.
Sonoco management does not, nor does it suggest that investors should, consider these non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Sonoco presents these non-GAAP financial measures to provide users information to evaluate Sonoco's operating results in a manner similar to how management evaluates business performance. Material limitations associated with the use of such measures are that they do not reflect all period costs included in operating expenses and may not reflect financial results that are comparable to financial results of other companies that present similar costs differently. Furthermore, the calculations of these non-GAAP measures are based on subjective determinations of management regarding the nature and classification of events and circumstances that the investor may find material and view differently.
To compensate for these limitations, management believes that it is useful in understanding and analyzing the results of the business to review both GAAP information which includes all of the items impacting financial results and the non-GAAP measures that exclude certain elements, as described above. Whenever Sonoco uses a non-GAAP financial measure, it provides a reconciliation of the non-GAAP financial measure to the most closely applicable GAAP financial measure. Whenever reviewing a non-GAAP financial measure, investors are encouraged to fully review and consider the related reconciliation as detailed below.
Non-GAAP Adjustments |
|||||||||
Three Months Ended December 31, 2012 |
GAAP |
Restructuring / |
Other |
Base |
|||||
Income before interest and income taxes |
$ 83,281 |
$ 8,694 |
$ (1,586) |
$ 90,389 |
|||||
Interest expense, net |
$ 14,464 |
$ - |
$ - |
$ 14,464 |
|||||
Income before income taxes |
$ 68,817 |
$ 8,694 |
$ (1,586) |
$ 75,925 |
|||||
Provision for income taxes |
$ 30,558 |
$ 3,924 |
$ (11,166) |
$ 23,316 |
|||||
Income before equity in earnings of affiliates |
$ 38,259 |
$ 4,770 |
$ 9,580 |
$ 52,609 |
|||||
Equity in earnings of affiliates, net of taxes |
$ 4,569 |
$ - |
$ - |
$ 4,569 |
|||||
Net income |
$ 42,828 |
$ 4,770 |
$ 9,580 |
$ 57,178 |
|||||
Net (income)/loss attributable to noncontrolling interests |
$ (45) |
$ 12 |
$ - |
$ (33) |
|||||
Net income attributable to Sonoco |
$ 42,783 |
$ 4,782 |
$ 9,580 |
$ 57,145 |
|||||
Per Diluted Share |
$ 0.42 |
$ 0.05 |
$ 0.09 |
$ 0.56 |
|||||
Non-GAAP Adjustments |
|||||||||
Three Months Ended December 31, 2011 |
GAAP |
Restructuring / |
Other |
Base |
|||||
Income before interest and income taxes |
$ 65,879 |
$ 12,883 |
$ 5,343 |
$ 84,105 |
|||||
Interest expense, net |
$ 12,829 |
$ - |
$ - |
$ 12,829 |
|||||
Income before income taxes |
$ 53,050 |
$ 12,883 |
$ 5,343 |
$ 71,276 |
|||||
Provision for income taxes |
$ 27,120 |
$ 3,036 |
$ (2,365) |
$ 27,791 |
|||||
Income before equity in earnings of affiliates |
$ 25,930 |
$ 9,847 |
$ 7,708 |
$ 43,485 |
|||||
Equity in earnings of affiliates, net of taxes |
$ 3,598 |
$ - |
$ - |
$ 3,598 |
|||||
Net income |
$ 29,528 |
$ 9,847 |
$ 7,708 |
$ 47,083 |
|||||
Net (income)/loss attributable to noncontrolling interests |
$ (13) |
$ 52 |
$ - |
$ 39 |
|||||
Net income attributable to Sonoco |
$ 29,515 |
$ 9,899 |
$ 7,708 |
$ 47,122 |
|||||
Per Diluted Share |
$ 0.29 |
$ 0.10 |
$ 0.07 |
$ 0.46 |
|||||
Non-GAAP Adjustments |
|||||||||
Twelve Months Ended December 31, 2012 |
GAAP |
Restructuring / |
Other |
Base |
|||||
Income before interest and income taxes |
$ 347,059 |
$ 32,858 |
$ (4,489) |
$ 375,428 |
|||||
Interest expense, net |
$ 59,985 |
$ - |
$ - |
$ 59,985 |
|||||
Income before income taxes |
$ 287,074 |
$ 32,858 |
$ (4,489) |
$ 315,443 |
|||||
Provision for income taxes |
$ 103,759 |
$ 9,836 |
$ (12,203) |
$ 101,392 |
|||||
Income before equity in earnings of affiliates |
$ 183,315 |
$ 23,022 |
$ 7,714 |
$ 214,051 |
|||||
Equity in earnings of affiliates, net of taxes |
$ 12,805 |
$ 22 |
$ - |
$ 12,827 |
|||||
Net income |
$ 196,120 |
$ 23,044 |
$ 7,714 |
$ 226,878 |
|||||
Net (income)/loss attributable to noncontrolling interests |
$ (110) |
$ 116 |
$ - |
$ 6 |
|||||
Net income attributable to Sonoco |
$ 196,010 |
$ 23,160 |
$ 7,714 |
$ 226,884 |
|||||
Per Diluted Share |
$ 1.91 |
$ 0.22 |
$ 0.08 |
$ 2.21 |
|||||
Non-GAAP Adjustments |
|||||||||
Twelve Months Ended December 31, 2011 |
GAAP |
Restructuring / |
Other |
Base |
|||||
Income before interest and income taxes |
$ 322,480 |
$ 36,826 |
$ 7,337 |
$ 366,643 |
|||||
Interest expense, net |
$ 38,074 |
$ - |
$ - |
$ 38,074 |
|||||
Income before income taxes |
$ 284,406 |
$ 36,826 |
$ 7,337 |
$ 328,569 |
|||||
Provision for income taxes |
$ 78,423 |
$ 11,506 |
$ 16,813 |
$ 106,742 |
|||||
Income before equity in earnings of affiliates |
$ 205,983 |
$ 25,320 |
$ (9,476) |
$ 221,827 |
|||||
Equity in earnings of affiliates, net of taxes |
$ 12,061 |
$ 17 |
$ - |
$ 12,078 |
|||||
Net income |
$ 218,044 |
$ 25,337 |
$ (9,476) |
$ 233,905 |
|||||
Net (income)/loss attributable to noncontrolling interests |
$ (527) |
$ 200 |
$ - |
$ (327) |
|||||
Net income attributable to Sonoco |
$ 217,517 |
$ 25,537 |
$ (9,476) |
$ 233,578 |
|||||
Per Diluted Share |
$ 2.13 |
$ 0.25 |
$ (0.09) |
$ 2.29 |
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(1) Restructuring/Asset impairment charges are a recurring item as Sonoco's restructuring programs usually require several years to fully implement and the Company is continually seeking to take actions that could enhance its efficiency. Although recurring, these charges are subject to significant fluctuations from period to period due to the varying levels of restructuring activity and the inherent imprecision in the estimates used to recognize the impairment of assets and the wide variety of costs and taxes associated with severance and termination benefits in the countries in which the restructuring actions occur. |
(2) Other adjustments in the three- and twelve-month periods ended December 31, 2012, consist of excess insurance settlement gains and additional tax expense related to the repatriation of accumulated offshore cash, partially offset by reductions in tax expense from valuation allowance adjustments on deferred tax assets. |
(3) Other adjustments in the three-month period ended December 31, 2011, consist of acquisition-related costs of $9,339 pretax and insurance settlement gains on a facility destroyed by fire in 2010 totaling $3,996. |
(4) Other adjustments in the twelve months ended December 31, 2011 consist of acquisition-related costs of $12,290 pretax, insurance settlement gains of $4,953 pretax, and reductions in tax expense from valuation allowance adjustments on deferred tax assets totaling $14,969. |
SOURCE Sonoco
Roger Schrum, +1-843-339-6018, roger.schrum@sonoco.com