Sonoco Reports Second Quarter 2013 Results
HARTSVILLE, S.C.,
(Logo: http://photos.prnewswire.com/prnh/20120403/CL80773LOGO)
Second Quarter Highlights
- Second quarter 2013 GAAP earnings per diluted share were
$.53 , compared with$.50 in 2012. - Second quarter 2013 GAAP results include
$.06 per diluted share in after-tax charges related to restructuring activities, including previously announced plant closures. Second quarter 2012 GAAP results included an$.08 per diluted share charge related to restructuring activities. - Base net income attributable to Sonoco (base earnings) for second quarter 2013 was
$.59 per diluted share, compared with$.58 in 2012. (See base earnings definition and reconciliation later in this release.) Sonoco previously provided second quarter base earnings guidance of$.56 to $.60 per diluted share. - Second quarter 2013 net sales were
$1.23 billion , up 2 percent, compared with$1.20 billion in 2012. - Cash flow from operations was
$108.2 million , compared with$42.9 million in 2012. Free cash flow for the second quarter was$34.9 million , compared with a negative$42.1 million in 2012. (Free cash flow is defined as cash flow from operations minus net capital expenditures and cash dividends. Net capital expenditures is defined as capital expenditures minus proceeds from the disposal of capital assets.)
Earnings Guidance Update
- Third quarter 2013 base earnings are expected to be
$.59 to $.63 per diluted share. - Guidance for full-year 2013 base earnings remains
$2.26 to $2.32 per diluted share.
Second Quarter Review
Commenting on the Company's second quarter results, Sonoco President and Chief Executive Officer
"Operating profits in our
"Second quarter operating profits declined 9 percent in our Paper and Industrial Converted Products segment despite the positive impact of productivity improvements and a slightly positive price/cost relationship. However, these favorable factors were more than offset by higher maintenance, labor, pension and other costs, including a
"Our Protective Solutions segment reported an improvement in operating profits of nearly 4 percent for the quarter due to increased volume, productivity improvements and a positive price/cost relationship. However, these positive factors were partially offset by higher labor and other operating expenses."
GAAP net income attributable to Sonoco in the second quarter was
Second quarter base earnings excluded after-tax charges of
Net sales for the second quarter were
Gross profits were a record
Cash generated from operations in the second quarter was
Year-to-date Results
For the first six months of 2013, net sales were essentially flat at
Earnings in the first half of 2013 were negatively impacted by after-tax restructuring and other charges of
Base earnings for the first half of 2013 were
Gross profit was
For the first six months of 2013, cash generated from operations was
At
Corporate
Net interest expense for the second quarter of 2013 decreased to
Sonoco expects third quarter 2013 base earnings to be in the range of
Commenting on the Company's outlook, Sanders said, "While we face negative price/cost headwinds entering the third quarter, we remain optimistic that we'll see a steadily improving operating environment in the second half of 2013. We have three areas of focus: offsetting higher raw material inflation by implementing necessary price increases in our Paper and Industrial Converted and
Segment Review
Sonoco reports its financial results in four operating segments:
restructuring and asset impairment charges, acquisition expenses, interest income and expense, income taxes or certain other items, if any, the exclusion of which the Company believes improves comparability and analysis.
Sonoco's
Second quarter 2013 sales for the segment were
The slight decline in sales was due primarily to lower volume in metal ends and thermoformed and injection molded plastic products largely offset by volume growth in flexible packaging, blow molded plastics and composite cans. Segment operating profit increased 11 percent due to a positive price/cost relationship and productivity improvements, which were partially offset by higher labor, pension and other operating costs.
assembling, packing and distributing temporary, semi-permanent and permanent point-of-purchase displays; supply chain management services, including contract packing, fulfillment and scalable service centers; and paper amenities, such as coasters and glass covers.
Second quarter 2013 sales for this segment were
Sales increased more than 19 percent from last year's second quarter due to volume growth in international contract packaging and U.S. display and packaging activities. Quarterly operating profit for the segment increased 34 percent year over year as volume growth in global display and packaging activities more than offset higher labor and other costs.
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; wooden, metal and composite wire and cable reels and spools; and recycled paperboard, linerboard, corrugating medium, recovered paper and other recycled materials.
Second quarter 2013 sales for the segment were
The decrease in sales was due to lower selling prices associated with the year-over-year decline in recovered paper costs, partially offset by volume gains across most of the segment. One notable exception was European recycling where volume was down due to exiting a small recycled fiber trading operation in
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.
Second quarter 2013 sales were
This segment's quarterly sales improved 5 percent due to volume growth throughout the segment, but primarily in the Industrial and Consumer protective businesses, partially offset by the divestiture of a small box plant. Operating profit for the segment increased 4 percent due to productivity improvements, volume growth and a slightly positive price/cost relationship, partially offset by a negative mix of business and higher labor and other operating costs.
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," "aspires," 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, realization of synergies resulting from acquisitions, 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, sales growth, market leadership, realization of synergies resulting from acquisitions, continued payments of dividends, stock repurchases, producing improvements in earnings, financial results for future periods, goodwill impairment charges, expected amounts of capital spending, anticipated contributions to benefit plans, 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 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;
- accuracy of assumptions underlying fair value measurements, accuracy of management's assessments of fair value and fluctuations in fair value;
- accuracy in valuation of deferred tax assets;
- 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
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) |
|||||||||
(Dollars and shares in thousands except per share) |
|||||||||
THREE MONTHS ENDED |
SIX MONTHS ENDED |
||||||||
June 30, 2013 |
July 1, 2012 |
June 30, 2013 |
July 1, 2012 |
||||||
Net sales |
$ 1,226,256 |
$ 1,202,359 |
$ 2,405,469 |
$ 2,414,729 |
|||||
Cost of sales |
1,003,692 |
985,817 |
1,977,189 |
1,981,326 |
|||||
Gross profit |
222,564 |
216,542 |
428,280 |
433,403 |
|||||
Selling, general and administrative expenses |
121,848 |
118,554 |
241,859 |
241,360 |
|||||
Restructuring/Asset impairment charges |
8,678 |
9,396 |
12,967 |
24,608 |
|||||
Income before interest and income taxes |
$ 92,038 |
$ 88,592 |
$ 173,454 |
$ 167,435 |
|||||
Net interest expense |
14,407 |
15,248 |
28,675 |
30,669 |
|||||
Income before income taxes and equity in earnings of affiliates |
77,631 |
73,344 |
144,779 |
136,766 |
|||||
Provision for income taxes |
26,409 |
25,905 |
47,661 |
47,802 |
|||||
Income before equity in earnings of affiliates |
51,222 |
47,439 |
97,118 |
88,964 |
|||||
Equity in earnings of affiliates, net of tax |
3,824 |
3,912 |
5,721 |
5,299 |
|||||
Net income |
55,046 |
51,351 |
102,839 |
94,263 |
|||||
Net (income) / loss attributable to noncontrolling interests |
(58) |
(28) |
288 |
128 |
|||||
Net income attributable to Sonoco |
$ 54,988 |
$ 51,323 |
$ 103,127 |
$ 94,391 |
|||||
Weighted average common shares outstanding – diluted |
103,237 |
102,569 |
103,031 |
102,563 |
|||||
Diluted earnings per common share |
$0.53 |
$0.50 |
$1.00 |
$0.92 |
|||||
Dividends per common share |
$0.31 |
$0.30 |
$0.61 |
$0.59 |
FINANCIAL SEGMENT INFORMATION (Unaudited) |
|||||||||
(Dollars in thousands) |
|||||||||
THREE MONTHS ENDED |
SIX MONTHS ENDED |
||||||||
June 30, 2013 |
July 1, 2012 |
June 30, 2013 |
July 1, 2012 |
||||||
Net sales |
|||||||||
Consumer Packaging |
$ 475,013 |
$ 477,038 |
$ 938,313 |
$ 972,804 |
|||||
Paper and Industrial Converted Products |
473,217 |
475,460 |
927,424 |
939,070 |
|||||
Display and Packaging |
128,790 |
107,801 |
248,665 |
222,706 |
|||||
Protective Solutions |
149,236 |
142,060 |
291,067 |
280,149 |
|||||
Consolidated |
$ 1,226,256 |
$ 1,202,359 |
$ 2,405,469 |
$ 2,414,729 |
|||||
Income before interest and income taxes: |
|||||||||
Segment operating profit: |
|||||||||
Consumer Packaging |
$ 47,366 |
$ 42,752 |
$ 89,706 |
$ 92,832 |
|||||
Paper and Industrial Converted Products |
35,991 |
39,652 |
66,995 |
71,956 |
|||||
Display and Packaging |
5,383 |
4,029 |
10,088 |
8,871 |
|||||
Protective Solutions |
12,064 |
11,653 |
20,586 |
18,658 |
|||||
Restructuring/Asset impairment charges |
(8,678) |
(9,396) |
(12,967) |
(24,608) |
|||||
Other non-base charges |
(88) |
(98) |
(954) |
(274) |
|||||
Consolidated |
$ 92,038 |
$ 88,592 |
$ 173,454 |
$ 167,435 |
|||||
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) |
|||||||||
(Dollars in thousands) |
|||||||||
THREE MONTHS ENDED |
SIX MONTHS ENDED |
||||||||
June 30, 2013 |
July 1, 2012 |
June 30, 2013 |
July 1, 2012 |
||||||
Net income |
$ 55,046 |
$ 51,351 |
$ 102,839 |
$ 94,263 |
|||||
Asset impairment charges |
5,807 |
936 |
6,850 |
4,692 |
|||||
Depreciation, depletion and amortization |
51,023 |
49,903 |
98,254 |
101,133 |
|||||
Fox River environmental reserves |
(411) |
(684) |
(1,428) |
(910) |
|||||
Pension and postretirement plan expense/contributions |
8,325 |
4,173 |
6,554 |
(33,907) |
|||||
Changes in working capital |
(8,265) |
(24,862) |
(10,352) |
(39,275) |
|||||
Other operating activity* |
(3,370) |
(37,921) |
41,762 |
14,376 |
|||||
Net cash provided by operating activities |
108,155 |
42,896 |
244,479 |
140,372 |
|||||
Purchase of property, plant and equipment, net * |
(41,868) |
(54,864) |
(97,161) |
(98,038) |
|||||
Proceeds from dispositions / (Cost of acquisitions, exclusive of cash) |
6,200 |
- |
6,200 |
(503) |
|||||
Net (debt repayments) / borrowings |
(23,029) |
68,521 |
(281,357) |
32,436 |
|||||
Cash dividends |
(31,418) |
(30,178) |
(61,721) |
(59,343) |
|||||
Other, including effects of exchange rates on cash |
(2,129) |
(6,470) |
(4,163) |
5,558 |
|||||
Net increase in cash and cash equivalents |
15,911 |
19,905 |
(193,723) |
20,482 |
|||||
Cash and cash equivalents at beginning of period |
163,450 |
176,100 |
373,084 |
175,523 |
|||||
Cash and cash equivalents at end of period |
$ 179,361 |
$ 196,005 |
$ 179,361 |
$ 196,005 |
|||||
* |
Prior year's data have been reclassified to conform to the current year's presentation |
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) |
|||||||||
(Dollars in thousands) |
|||||||||
June 30, 2013 |
December 31, 2012 |
||||||||
Assets |
|||||||||
Current Assets: |
|||||||||
Cash and cash equivalents |
$ 179,361 |
$ 373,084 |
|||||||
Trade accounts receivable, net of allowances |
668,670 |
619,761 |
|||||||
Other receivables |
30,103 |
36,311 |
|||||||
Inventories |
391,121 |
383,272 |
|||||||
Prepaid expenses and deferred income taxes |
61,684 |
87,468 |
|||||||
1,330,939 |
1,499,896 |
||||||||
Property, plant and equipment, net |
1,033,189 |
1,034,906 |
|||||||
Goodwill |
1,096,483 |
1,110,505 |
|||||||
Other intangible assets, net |
257,927 |
276,809 |
|||||||
Other assets |
238,289 |
253,949 |
|||||||
$ 3,956,827 |
$ 4,176,065 |
||||||||
Liabilities and Shareholders' Equity |
|||||||||
Current Liabilities: |
|||||||||
Payable to suppliers and other payables |
$ 800,757 |
$ 764,322 |
|||||||
Notes payable and current portion of long-term debt |
143,517 |
273,608 |
|||||||
Income taxes payable |
12,545 |
6,305 |
|||||||
$ 956,819 |
$ 1,044,235 |
||||||||
Long-term debt, net of current portion |
947,958 |
1,099,454 |
|||||||
Pension and other postretirement benefits |
451,327 |
461,881 |
|||||||
Deferred income taxes and other |
66,852 |
67,281 |
|||||||
Total equity |
1,533,871 |
1,503,214 |
|||||||
$ 3,956,827 |
$ 4,176,065 |
||||||||
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 June 30, 2013 |
GAAP |
Restructuring / Asset Impairment |
Other Adjustments |
Base |
|||||
Income before interest and income taxes |
$ 92,038 |
$ 8,678 |
$ 88 |
$ 100,804 |
|||||
Interest expense, net |
$ 14,407 |
$ - |
$ - |
$ 14,407 |
|||||
Income before income taxes |
$ 77,631 |
$ 8,678 |
$ 88 |
$ 86,397 |
|||||
Provision for income taxes |
$ 26,409 |
$ 2,913 |
$ 28 |
$ 29,350 |
|||||
Income before equity in earnings of affiliates |
$ 51,222 |
$ 5,765 |
$ 60 |
$ 57,047 |
|||||
Equity in earnings of affiliates, net of taxes |
$ 3,824 |
$ - |
$ - |
$ 3,824 |
|||||
Net income |
$ 55,046 |
$ 5,765 |
$ 60 |
$ 60,871 |
|||||
Net (income) / loss attributable to noncontrolling interests |
$ (58) |
$ 27 |
$ - |
$ (31) |
|||||
Net income attributable to Sonoco |
$ 54,988 |
$ 5,792 |
$ 60 |
$ 60,840 |
|||||
Per Diluted Share |
$ 0.53 |
$ 0.06 |
$ 0.00 |
$ 0.59 |
|||||
Non-GAAP Adjustments |
|||||||||
Three Months Ended July 1, 2012 |
GAAP |
Restructuring / Asset Impairment |
Other Adjustments |
Base |
|||||
Income before interest and income taxes |
$ 88,592 |
$ 9,396 |
$ 98 |
$ 98,086 |
|||||
Interest expense, net |
$ 15,248 |
$ - |
$ - |
$ 15,248 |
|||||
Income before income taxes |
$ 73,344 |
$ 9,396 |
$ 98 |
$ 82,838 |
|||||
Provision for income taxes |
$ 25,905 |
$ 1,195 |
$ 30 |
$ 27,130 |
|||||
Income before equity in earnings of affiliates |
$ 47,439 |
$ 8,201 |
$ 68 |
$ 55,708 |
|||||
Equity in earnings of affiliates, net of taxes |
$ 3,912 |
$ 22 |
$ - |
$ 3,934 |
|||||
Net income |
$ 51,351 |
$ 8,223 |
$ 68 |
$ 59,642 |
|||||
Net (income) / loss attributable to noncontrolling interests |
$ (28) |
$ 43 |
$ - |
$ 15 |
|||||
Net income attributable to Sonoco |
$ 51,323 |
$ 8,266 |
$ 68 |
$ 59,657 |
|||||
Per Diluted Share |
$ 0.50 |
$ 0.08 |
$ 0.00 |
$ 0.58 |
|||||
Non-GAAP Adjustments |
|||||||||
Six Months Ended June 30, 2013 |
GAAP |
Restructuring / Asset Impairment |
Other Adjustments |
Base |
|||||
Income before interest and income taxes |
$ 173,454 |
$ 12,967 |
$ 954 |
$ 187,375 |
|||||
Interest expense, net |
$ 28,675 |
$ - |
$ - |
$ 28,675 |
|||||
Income before income taxes |
$ 144,779 |
$ 12,967 |
$ 954 |
$ 158,700 |
|||||
Provision for income taxes |
$ 47,661 |
$ 4,196 |
$ 323 |
$ 52,180 |
|||||
Income before equity in earnings of affiliates |
$ 97,118 |
$ 8,771 |
$ 631 |
$ 106,520 |
|||||
Equity in earnings of affiliates, net of taxes |
$ 5,721 |
$ - |
$ - |
$ 5,721 |
|||||
Net income |
$ 102,839 |
$ 8,771 |
$ 631 |
$ 112,241 |
|||||
Net loss attributable to noncontrolling interests |
$ 288 |
$ 54 |
$ - |
$ 342 |
|||||
Net income attributable to Sonoco |
$ 103,127 |
$ 8,825 |
$ 631 |
$ 112,583 |
|||||
Per Diluted Share |
$ 1.00 |
$ 0.08 |
$ 0.01 |
$ 1.09 |
|||||
Non-GAAP Adjustments |
|||||||||
Six Months Ended July 1, 2012 |
GAAP |
Restructuring / Asset Impairment |
Other Adjustments |
Base |
|||||
Income before interest and income taxes |
$ 167,435 |
$ 24,608 |
$ 274 |
$ 192,317 |
|||||
Interest expense, net |
$ 30,669 |
$ - |
$ - |
$ 30,669 |
|||||
Income before income taxes |
$ 136,766 |
$ 24,608 |
$ 274 |
$ 161,648 |
|||||
Provision for income taxes |
$ 47,802 |
$ 5,786 |
$ 98 |
$ 53,686 |
|||||
Income before equity in earnings of affiliates |
$ 88,964 |
$ 18,822 |
$ 176 |
$ 107,962 |
|||||
Equity in earnings of affiliates, net of taxes |
$ 5,299 |
$ 22 |
$ - |
$ 5,321 |
|||||
Net income |
$ 94,263 |
$ 18,844 |
$ 176 |
$ 113,283 |
|||||
Net loss attributable to noncontrolling interests |
$ 128 |
$ 73 |
$ - |
$ 201 |
|||||
Net income attributable to Sonoco |
$ 94,391 |
$ 18,917 |
$ 176 |
$ 113,484 |
|||||
Per Diluted Share |
$ 0.92 |
$ 0.19 |
$ 0.00 |
$ 1.11 |
|||||
(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.
|
SOURCE Sonoco
Roger Schrum, +843-339-6018, roger.schrum@sonoco.com