Net sales for the third quarter of 2019 were $1.32 billion, an increase of $14.3 million, or 1.1 percent, as compared to $1.31 billion in 2018. This increase was the result of higher net sales in the metal container business, partially offset by a decrease in net sales in the closures and plastic container businesses. Income before interest and income taxes for the third quarter of 2019 was $132.7 million, a decrease of $5.8 million as compared to $138.5 million for the third quarter of 2018, and margins decreased to 10.0 percent from 10.6 percent for the same periods.
The Reels Division of Sonoco (NYSE:SON) today announced it is implementing a general price increase for both new and recycled molded wooden plugs in the United States and Canada. Sonoco has not increased prices for its plug products since 2011. The price increase is expected to be in the range of 6-8%.
“This increase is necessary to capture inflationary pressure that has entered the market over the past 6 years across a range of operational and material inputs, including energy, corrugated medium, transportation costs and raw materials,” said Dave Winebarger, division vice president and general manager for Sonoco’s U.S. and Canada reels and plugs operations. “Recovering these rising costs will allow us to continue providing high-quality, value-adding products to our customers.”
Sonoco is North America’s leading producer of molded wooden plugs and wood, steel, recycled and composite reels used for a wide range of industrial applications.