Sonoco records 11% fall in Q3 profit

The company’s revenue increased to $1.1bn in the quarter, compared with $1bn for the same period last year.

Chief executive Harris E. DeLoach junior said: “Our consumer packaging segment posted a year-over-year improvement as third-quarter sales in this segment increased 8% and base operating profits climbed 22%

“However, these favourable results were offset by lower volumes in many of our industrial packaging businesses and by higher raw material, energy, freight and other costs.”

Sonoco said that it had benefited from increased prices, introduced to recover some escalating raw material, energy and freight costs, as well as a favourable foreign currency moves.

“Offsetting these gains were lower volumes in our tubes and cores/paper segment, packaging services segment and businesses included in all other Sonoco. Volume in many of our businesses serving industrial markets continues to be negatively impacted by weak economic conditions,” said DeLoach.

Sonocco operates more than 330 facilities in 35 countries.

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