Sonoco expects 4Q and full-year 2018 GAAP earnings to be $0.75 to $0.85 and $3.09 to $3.19 per diluted share, respectively, as the company says in the press release received by Lesprom Network.
The full-year range includes amounts previously disclosed by Sonoco of approximately $0.19 per diluted share, after-tax, related largely to restructuring and asset impairment charges, acquisition costs and the effect of income tax rate changes on deferred tax items.
These GAAP guidance ranges also reflect the anticipated 4Q impact of estimated after-tax restructuring charges and property insurance recovery related to Hurricane Florence.
4Q and full-year 2018 base earnings guidance is being raised to $0.79 to $0.85 and $3.32 to $3.38per diluted share, respectively. The Company previously provided guidance of $0.75 to $0.81 and $3.28 to $3.34per diluted share for these respective periods.
The increase in base earnings guidance is due to the receipt of business interruption insurance proceeds in the 4Q associated with the impact of flooding on operations from Hurricane Florence in September.
Guidance for 2018 operating cash flow and free cash flow has been raised to $590 million to $610 million and $250 million to $270 million, respectively.
The Company previously provided operating cash flow and free cash flow guidance of $580 million to $600 million and $230 million to $250 million, respectively. The increase in guidance for 2018 free cash flow is due primarily to lower than anticipated capital spending.
Sonoco is one of the largest diversified global packaging companies.
