Sonoco Reports Fourth Quarter, Full-Year 2013 Results
(Logo: http://photos.prnewswire.com/prnh/20120403/CL80773LOGO )
Fourth Quarter Highlights
- Fourth quarter 2013 GAAP earnings per diluted share were
$.53 , compared with$.42 in 2012. - Fourth quarter 2013 GAAP results include
$.05 per diluted share in after-tax charges related primarily to restructuring activities and previously announced plant closures. Fourth quarter 2012 GAAP results included a net after-tax charge of$.14 per diluted share related to restructuring activities and taxes on the repatriation of offshore cash. - Base net income attributable to Sonoco (base earnings) for fourth quarter 2013 was
$.58 per diluted share, compared with$.56 in 2012. (See base earnings definition and reconciliation later in this release.) Sonoco previously provided fourth quarter base earnings guidance of$.55 to $.59 per diluted share. - Fourth quarter 2013 net sales were
$1.22 billion , up 3 percent, compared with$1.18 billion in 2012. - Cash flow from operations was
$117 million , compared with$111 million in 2012. Free cash flow for the fourth quarter was$58 million , compared with$36 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.)
Full-Year 2013 Highlights
- Full-year 2013 GAAP earnings per diluted share were
$2.12 , up 11 percent, compared with$1.91 in 2012. - Full-year 2013 GAAP earnings per diluted share include
$.18 per diluted share in after-tax restructuring charges primarily related to plant closures. In comparison, 2012 GAAP results included$.30 per diluted share in after-tax restructuring charges and tax items, partially offset by excess insurance settlement gains. - Full-year 2013 base earnings were
$2.30 per diluted share, up 4 percent, compared with$2.21 in 2012. Sonoco previously provided full-year guidance of$2.27 to $2.31 per diluted share. - Net sales reached a record
$4.85 billion , compared with$4.79 billion in 2012. - Cash flow from operations was a record
$538 million , up 33 percent, compared with$404 million in 2012. Free cash flow was$245 million , up 142 percent, compared with$101 million in 2012.
2014 Base Earnings Guidance Changed; Business Segments to be Modified
- Full-year 2014 base earnings are expected to be
$2.43 to $2.53 per diluted share and the Company is targeting$2.51 per diluted share. - Base earnings for the first quarter of 2014 are estimated to be
$.50 to $.54 . Base earnings in the first quarter of 2013 were$.50 . - Free cash flow in 2014 is projected to be approximately
$130 million . - Effective
Jan. 1, 2014 , due to certain operational and related internal reporting changes, Sonoco Alloyd, a retail packaging business that is currently part of the Company's Protective Solutions segment, will be managed and reported as part of Display and Packaging, the Company's consumer-focused retail merchandising segment. As these changes did not take effect until 2014, Sonoco Alloyd is presented in the Protective Solutions segment as of year-end 2013.
Fourth Quarter Review
Commenting on the Company's fourth quarter results, Sonoco President and Chief Executive Officer
"Operating profits from our Consumer Packaging segment increased 21 percent over the prior year's fourth quarter due to volume gains in most of the businesses in the segment, along with strong productivity and a positive price/cost relationship, partially offset by higher labor and other operating expenses. In addition, operating profits from our Display and Packaging segment improved slightly."
"Fourth quarter operating profits declined 8 percent in our Paper and Industrial Converted Products segment as strong productivity improvements, modest volume growth and insurance proceeds were more than offset by higher labor, maintenance and other operating costs, and an increase in profits deferred on intercompany paper sales. Operating profits in our Protective Solutions segment also declined during the fourth quarter as the benefit of improved productivity was more than offset by a negative price/cost relationship and higher labor and other operating expenses, including costs associated with the start up of new operations."
GAAP net income attributable to Sonoco in the fourth quarter was
Fourth quarter base earnings exclude
Net sales for the fourth quarter were
Gross profits were
Cash generated from operations in the fourth quarter was
2013 Results
Net sales for 2013 were
Net income attributable to Sonoco for 2013 was
Base earnings for 2013 were
Gross profit increased 4 percent to a record
Cash generated from operations in 2013 was a record
As of
2013 Overview
According to Sanders, "We delivered on many of our financial, operational, and strategic commitments in 2013, while launching an effort to re-envision Sonoco to achieve future accelerated growth. We delivered record sales, gross profits and cash flow from operations in 2013, while free cash flow more than doubled. Despite an economic recession in
"We are optimistic that 2014 will prove to be another good year for Sonoco. While economic conditions in certain emerging markets may prove difficult, we have identified several global growth opportunities. In addition, consumer packaging volumes have been disappointing over the past few years, but we are pleased with recent positive trends and are proactively working to build our technology and new product funnels to drive future organic growth. As we pursue our re-envisioning, we will continue the cultural, structural and operational changes needed to transform Sonoco from a packaging company that just happens to offer solutions to a solutions company that offers more than just packaging. In addition, we will continue to consider and explore other opportunities to further strengthen and differentiate our organization in the marketplace and return value to our shareholders."
Corporate
Net interest expense for the fourth quarter of 2013 decreased to
First Quarter and Full-Year 2014 Outlook
Sonoco expects first quarter 2014 base earnings to be in the range of
Although the Company believes the assumptions reflected in the range of guidance are reasonable, given the uncertainty regarding the weather, global economic factors and potential changes in raw material prices and other costs, as well as other risks and uncertainties, including those described below, actual results could vary substantially.
Commenting on the Company's outlook, Sanders said, "While we expect modest year-over-year improvement for the quarter, there is some uncertainty about the negative impact that severe winter weather may have on our operations along with continued difficult economic conditions in
Segment Review
Sonoco reports its financial results in four operating segments: Consumer Packaging, Display and Packaging, Paper and Industrial Converted Products, and Protective Solutions. Effective
Segment operating results do not include 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.
Consumer Packaging
Sonoco's Consumer Packaging segment includes the following products and services: round and shaped rigid containers and trays (both composite and thermoformed plastic); blow-molded plastic bottles and jars; extruded and injection-molded plastic products; printed flexible packaging; global brand artwork management; and metal and peelable membrane ends and closures.
Fourth quarter 2013 sales for the segment were
The 4 percent increase in sales was due primarily to a combination of solid volume improvement and a positive mix of business in flexible packaging, composite cans and rigid plastic containers, along with higher sales prices and acquisition of a small graphics management business in the
Display and Packaging
The Display and Packaging segment includes the following products and services: designing, manufacturing, 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.
Fourth quarter 2013 sales for this segment were
Sales were essentially flat during the fourth quarter as volume growth in the U.S. display and packaging business was offset by lower contract packaging volume. Quarterly operating profit for the segment grew slightly year over year on an improved mix of business in U.S. display and packaging activities, which was partially offset by higher labor and other operating 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 recycling services for materials.
Fourth quarter 2013 sales for the segment were
The 3 percent increase in sales was due to higher selling prices, primarily associated with a year-over-year increase in recovered paper costs, and volume and mix gains 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 packaging.
Fourth quarter 2013 sales were
This segment's 3 percent increase in sales was due to volume growth in the industrial and consumer protective businesses, offset by the divestiture of a small box plant. Operating profits declined 29 percent as productivity improvements were more than offset by a negative price/cost relationship, higher labor and other operating costs, including the start-up of a plant in
Conference Call Webcast
Management will host a conference call and webcast to further discuss these results beginning at
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 annual 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," "re-envision", "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, growth opportunities, 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 |
TWELVE MONTHS ENDED |
||||||||
December 31, 2013 |
December 31, 2012 |
December 31, 2013 |
December 31, 2012 |
||||||
Net sales |
$ 1,214,874 |
$ 1,175,870 |
$ 4,848,092 |
$ 4,786,129 |
|||||
Cost of sales |
993,687 |
971,870 |
3,974,588 |
3,942,497 |
|||||
Gross profit |
221,187 |
204,000 |
873,504 |
843,632 |
|||||
Selling, general and administrative expenses |
127,377 |
112,025 |
487,171 |
463,715 |
|||||
Restructuring/Asset impairment charges |
6,253 |
8,694 |
25,038 |
32,858 |
|||||
Income before interest and income taxes |
$ 87,557 |
$ 83,281 |
$ 361,295 |
$ 347,059 |
|||||
Net interest expense |
13,765 |
14,464 |
56,726 |
59,985 |
|||||
Income before income taxes and equity in earnings of affiliates |
73,792 |
68,817 |
304,569 |
287,074 |
|||||
Provision for income taxes |
21,457 |
30,558 |
96,203 |
103,759 |
|||||
Income before equity in earnings of affiliates |
52,335 |
38,259 |
208,366 |
183,315 |
|||||
Equity in earnings of affiliates, net of tax |
3,796 |
4,569 |
12,029 |
12,805 |
|||||
Net income |
56,131 |
42,828 |
220,395 |
196,120 |
|||||
Net income attributable to noncontrolling interests |
(1,385) |
(45) |
(1,282) |
(110) |
|||||
Net income attributable to Sonoco |
$ 54,746 |
$ 42,783 |
$ 219,113 |
$ 196,010 |
|||||
Weighted average common shares outstanding – diluted |
103,469 |
102,648 |
103,248 |
102,573 |
|||||
Diluted earnings per common share |
$0.53 |
$0.42 |
$2.12 |
$1.91 |
|||||
Dividends per common share |
$0.31 |
$0.30 |
$1.23 |
$1.19 |
FINANCIAL SEGMENT INFORMATION (Unaudited) |
|||||||||
(Dollars in thousands) |
|||||||||
THREE MONTHS ENDED |
TWELVE MONTHS ENDED |
||||||||
December 31, 2013 |
December 31, 2012 |
December 31, 2013 |
December 31, 2012 |
||||||
Net sales |
|||||||||
Consumer Packaging |
$ 481,888 |
$ 463,871 |
$ 1,893,533 |
$ 1,912,621 |
|||||
Paper and Industrial Converted Products |
463,609 |
448,152 |
1,858,880 |
1,840,827 |
|||||
Display and Packaging |
131,694 |
130,365 |
523,532 |
477,632 |
|||||
Protective Solutions |
137,683 |
133,482 |
572,147 |
555,049 |
|||||
Consolidated |
$ 1,214,874 |
$ 1,175,870 |
$ 4,848,092 |
$ 4,786,129 |
|||||
Income before interest and income taxes: |
|||||||||
Segment operating profit: |
|||||||||
Consumer Packaging |
$ 48,399 |
$ 40,107 |
$ 187,130 |
$ 176,768 |
|||||
Paper and Industrial Converted Products |
33,377 |
36,245 |
138,094 |
141,351 |
|||||
Display and Packaging |
4,671 |
4,543 |
23,617 |
18,512 |
|||||
Protective Solutions |
6,753 |
9,494 |
37,273 |
38,797 |
|||||
Restructuring/Asset impairment charges |
(6,253) |
(8,694) |
(25,038) |
(32,858) |
|||||
Other non-base charges |
610 |
1,586 |
219 |
4,489 |
|||||
Consolidated |
$ 87,557 |
$ 83,281 |
$ 361,295 |
$ 347,059 |
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) |
|||||||||
(Dollars in thousands) |
|||||||||
THREE MONTHS ENDED |
TWELVE MONTHS ENDED |
||||||||
December 31, 2013 |
December 31, 2012 |
December 31, 2013 |
December 31, 2012 |
||||||
Net income |
$ 56,131 |
$ 42,828 |
$ 220,395 |
$ 196,120 |
|||||
Asset impairment charges |
886 |
2,551 |
8,238 |
8,427 |
|||||
Depreciation, depletion and amortization |
52,097 |
51,244 |
197,671 |
200,403 |
|||||
Fox River environmental reserves |
(256) |
(1,476) |
(1,848) |
(2,796) |
|||||
Pension and postretirement plan expense / (contributions), net |
3,775 |
2,071 |
19,939 |
(22,203) |
|||||
Changes in working capital |
49,134 |
29,167 |
33,270 |
1,337 |
|||||
Other operating activity |
(45,024) |
(14,997) |
60,362 |
22,627 |
|||||
Net cash provided by operating activities |
116,743 |
111,388 |
538,027 |
403,915 |
|||||
Purchase of property, plant and equipment, net |
(26,955) |
(44,774) |
(168,131) |
(182,895) |
|||||
(Cost of acquisitions) / Proceeds from dispositions |
(277) |
- |
2,195 |
(503) |
|||||
Net borrowings / (debt repayments) |
(116,139) |
135,841 |
(388,396) |
85,748 |
|||||
Cash dividends |
(31,629) |
(30,234) |
(124,845) |
(119,771) |
|||||
Other, including effects of exchange rates on cash |
(11,753) |
(280) |
(14,367) |
11,067 |
|||||
Net increase in cash and cash equivalents |
(70,010) |
171,941 |
(155,517) |
197,561 |
|||||
Cash and cash equivalents at beginning of period |
287,577 |
201,143 |
373,084 |
175,523 |
|||||
Cash and cash equivalents at end of period |
$ 217,567 |
$ 373,084 |
$ 217,567 |
$ 373,084 |
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) |
|||||||||
(Dollars in thousands) |
|||||||||
December 31, 2013 |
December 31, 2012 |
||||||||
Assets |
|||||||||
Current Assets: |
|||||||||
Cash and cash equivalents |
$ 217,567 |
$ 373,084 |
|||||||
Trade accounts receivable, net of allowances |
614,053 |
619,761 |
|||||||
Other receivables |
38,995 |
36,311 |
|||||||
Inventories |
410,787 |
383,272 |
|||||||
Prepaid expenses and deferred income taxes |
97,072 |
87,468 |
|||||||
1,378,474 |
1,499,896 |
||||||||
Property, plant and equipment, net |
1,021,920 |
1,034,906 |
|||||||
Goodwill |
1,099,207 |
1,110,505 |
|||||||
Other intangible assets, net |
243,920 |
276,809 |
|||||||
Other assets |
235,770 |
253,949 |
|||||||
$ 3,979,291 |
$ 4,176,065 |
||||||||
Liabilities and Shareholders' Equity |
|||||||||
Current Liabilities: |
|||||||||
Payable to suppliers and other payables |
$ 823,375 |
$ 764,322 |
|||||||
Notes payable and current portion of long-term debt |
35,201 |
273,608 |
|||||||
Income taxes payable |
8,649 |
6,305 |
|||||||
$ 867,225 |
$ 1,044,235 |
||||||||
Long-term debt, net of current portion |
946,257 |
1,099,454 |
|||||||
Pension and other postretirement benefits |
263,718 |
461,881 |
|||||||
Deferred income taxes and other |
176,766 |
67,281 |
|||||||
Total equity |
1,725,325 |
1,503,214 |
|||||||
$ 3,979,291 |
$ 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 December 31, 2013 |
GAAP |
Restructuring / Asset Impairment Charges(1) |
Other Adjustments |
Base |
|||||
Income before interest and income taxes |
$ 87,557 |
$ 6,253 |
$ (610) |
$ 93,200 |
|||||
Interest expense, net |
$ 13,765 |
$ - |
$ - |
$ 13,765 |
|||||
Income before income taxes |
$ 73,792 |
$ 6,253 |
$ (610) |
$ 79,435 |
|||||
Provision for income taxes |
$ 21,457 |
$ 621 |
$ (149) |
$ 21,929 |
|||||
Income before equity in earnings of affiliates |
$ 52,335 |
$ 5,632 |
$ (461) |
$ 57,506 |
|||||
Equity in earnings of affiliates, net of taxes |
$ 3,796 |
$ - |
$ - |
$ 3,796 |
|||||
Net income |
$ 56,131 |
$ 5,632 |
$ (461) |
$ 61,302 |
|||||
Net (income) / loss attributable to noncontrolling interests |
$ (1,385) |
$ (12) |
$ - |
$ (1,397) |
|||||
Net income attributable to Sonoco |
$ 54,746 |
$ 5,620 |
$ (461) |
$ 59,905 |
|||||
Per Diluted Share |
$ 0.53 |
$ 0.06 |
$ (0.01) |
$ 0.58 |
Non-GAAP Adjustments |
|||||||||
Three Months Ended December 31, 2012 |
GAAP |
Restructuring / Asset Impairment Charges(1) |
Other Adjustments |
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 |
$ 0.04 |
$ 0.10 |
$ 0.56 |
Non-GAAP Adjustments |
|||||||||
Twelve Months Ended December 31, 2013 |
GAAP |
Restructuring / Asset Impairment Charges(1) |
Other Adjustments |
Base |
|||||
Income before interest and income taxes |
$ 361,295 |
$ 25,038 |
$ (219) |
$ 386,114 |
|||||
Interest expense, net |
$ 56,726 |
$ - |
$ - |
$ 56,726 |
|||||
Income before income taxes |
$ 304,569 |
$ 25,038 |
$ (219) |
$ 329,388 |
|||||
Provision for income taxes |
$ 96,203 |
$ 6,774 |
$ (323) |
$ 102,654 |
|||||
Income before equity in earnings of affiliates |
$ 208,366 |
$ 18,264 |
$ 104 |
$ 226,734 |
|||||
Equity in earnings of affiliates, net of taxes |
$ 12,029 |
$ - |
$ - |
$ 12,029 |
|||||
Net income |
$ 220,395 |
$ 18,264 |
$ 104 |
$ 238,763 |
|||||
Net (income)/loss attributable to noncontrolling interests |
$ (1,282) |
$ 2 |
$ - |
$ (1,280) |
|||||
Net income attributable to Sonoco |
$ 219,113 |
$ 18,266 |
$ 104 |
$ 237,483 |
|||||
Per Diluted Share |
$ 2.12 |
$ 0.18 |
$ 0.00 |
$ 2.30 |
Non-GAAP Adjustments |
|||||||||
Twelve Months Ended December 31, 2012 |
GAAP |
Restructuring / Asset Impairment Charges(1) |
Other Adjustments |
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 |
(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