News

Sonoco, the global packaging company, has reported a 9% increase in net sales to $1.09bn (£951.5m), for the second quarter of 2008.

The company said its net income for the second quarter was $58m, an increase of 37% on the same period in 2007.

Sonoco's consumer packaging division, including rigid packaging, flexible packaging and metal ends and closures, reported a 14% rise in second quarter sales to $398.2m.

The company said its tubes and paperboard arm saw sales increase 6% to $455.4m. It added that sales rose due to higher selling prices, the favourable impact of foreign exchange rates and acquisitions, offset by declining volumes in global tube, core and paper markets.

Its packaging services business reported a second quarter sales of $138.1m, up 14% on 2007. Sonoco said sales in the segment benefited from increased contract packaging volume, partially offset by lower selling prices and volume for point-of-purchase displays, both of which resulted from "competitive bidding activity" in 2007.

Harris E. DeLoach, chairman, president and chief executive officer, said: "Our strategy to change the mix of our businesses to take advantage of faster growing consumer-related markets while reducing the cyclicality of our more mature industrial businesses continued to pay dividends in the second quarter.

"These favourable results were partially offset by lower volumes in many of our businesses which serve industrial markets and by rising raw material inflation along with escalating energy, freight and other costs."

Overall the company reported a 9% increase in net sales to $2.12bn for the first six months of 2008. Its net income for first half of the year was $71.2m, compared with $95.5m in the same period in 2007.