These gains were partially offset by a negative translation impact from exchange rate changes of approximately $45 million along with lower selling prices due to lower commodity costs.
Gross profits were a record $245.3 million in the 1Q, up 11%, compared with $220.4 million in the same period in 2015. Gross profit as a percent of sales improved to 20%, compared with 18.3% in the same period in 2015, and reached the highest percentage margin level since 2002.
Commenting on the Company’s 1Q results, Sonoco President and CEO Jack Sanders said, “We are extremely pleased to deliver record 1Q base earnings results with each business segment reporting solid year-over-year improvement, including record first quarter performances in our targeted growth segments – Consumer Packaging and Protective Solutions. Overall, the Company benefited from a positive price/cost relationship, productivity improvements, lower pension and post-retirement benefit costs, and gains from volume/mix, which showed improvement even after excluding the positive impact of additional business days. Offsetting these positive factors were higher labor, maintenance and other operating costs, the negative impact of foreign currency translation and a higher effective tax rate.
Founded in 1899, Sonoco is a global provider of a variety of consumer packaging, industrial products, protective packaging, and displays and packaging supply chain services.
