•Overall revenues increased by $2.5 million, or 6.6%, to $39.7 million for the second quarter of 2015 from $37.2 million for the same period of last year. The increase in revenues was mainly driven by increase in sales volumes and partially offset by decrease in average selling prices for both paper cartons and corrugating medium paper. Average selling price for flexo paper cartons was particularly weak during the second quarter of 2015. •Gross profit decreased by $1.2 million, or 17.9%, to $5.3 million for the second quarter of 2015 from $6.5 million for the same period of last year. Gross margin decreased by 4 points to 13.4% for the second quarter of 2015 from 17.4% for the same period of last year. •Operating loss was $0.05 million for the second quarter of 2015, compared to net income of $1.7 million for the same period of last year.
Sonoco (NYSE:SON) today announced it will increase prices for its paper-based tubes and cores by a minimum of 6 percent in the United States and Canada, effective with shipments beginning July 16, 2018.
“The price increase is necessary due to ongoing increases in uncoated recycled paperboard (URB), the largest input cost for tubes and cores. URB demand remains strong and the marketplace is extremely tight, with operating rates pushing 100 percent,” said Doug Schwartz, division vice president of sales and marketing. “In addition, the rising cost of transportation remains a headwind due to lack of capacity linked to recently imposed driver regulations. As a result, Sonoco will be implementing a new policy of selling certain large diameter tubes that have less space utilization yields at F.O.B. from our operations.”