Sonoco's net sales for the 2Q 2017 were $1.24 billion, an increase of $35 million, or 2.9%, from last year’s quarter. The improvement in sales was a result of higher selling prices, particularly from rising raw material prices, and sales added from acquisitions, net of divestitures. These positive factors were partially offset by lower volume and the negative impact of foreign exchange, as the company said in the press release received by Lesprom Network.
Gross profits were $235.9 million in the 2Q 2017, down $6.1 million, compared with $242 million in the same period in 2016. Gross profit as a percent of sales declined to 19%, compared with 20.1%in the same period in 2016. The gross profit percentage reduction in the quarter was due primarily to lower volume/mix and the impact of rising raw material prices, partially offset by manufacturing productivity gains.
For the first six months of 2017, net sales were $2.41 billion, down $19 million, compared with $2.43 billion in 2016. Sales declined during the period due to lower volume, the loss of contract packaging business in Mexico and Brazil, the negative impact of foreign exchange and divestitures, net of acquisitions. These negative factors were partially offset by higher selling prices implemented to recover rising raw material costs.
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.
