Business

Sonoco, the global paper and packaging manufacturer, said it had a "successful year" in 2007, despite raw materials cost increases hitting profit margins.

Sonoco yesterday (6 February) announced sales of more than $4bn (£2bn) for the 12 months to 31 December, up 10.5% on 2006. But pre-tax profit after restructuring charges fell 3.8% to $308m.

Acquisitions in the tubes and cores/paper and consumer packaging segments boosted sales in the final quarter of 2007 by 7%, despite a change in accounting procedure resulting in six fewer trading days compared with the previous year.

Sonoco president Harris DeLoach said that, despite concerns over continued cost increases and a slowing North American economy, he believed 2008 would be "another record year".

DeLoach also said fears of a consumer-led recession in the US could be partially offset by Sonoco's "international exposure", particularly in Europe, where things were "sailing along reasonably well".

Last December, Sonoco said it planned to shift its focus from a 50:50 split between commercial and industrial packaging to 60:40 in favour of the commercial sector.

Sonoco, which has its headquarters in South Carolina, US, operates in 35 countries.