Sonoco’s net sales for the 2Q 2018 were $1.37 billion, an increase of $125.7 million, or 10.1%, from last year’s quarter. The improvement reflects an increase in sales added by acquisitions, volume growth, the positive impact of foreign exchange and higher selling prices implemented to recover rising freight and other operating inflation, as the company said in the press release received by Lesprom Network.
Gross profits were a record $276.5 million in the 2Q, an increase of $38.1 million or 16%, compared with $238.4 million in the same period in 2017. Gross profit as a percentage of sales increased to 20.2%, compared with 19.2% in the same period in 2017. The 100 basis point gross profit percentage increase was primarily due to manufacturing and procurement productivity, partially offset by higher operating costs.
For the first six months of 2018 net sales were $2.67 billion, up $257.6 million compared with $2.41 billion in the first six months of 2017. Sales grew 10.7% in the first half of the year due to acquisitions, the positive impact of foreign exchange, volume growth and higher selling prices implemented to recover higher freight and operating inflation and certain rising material costs.
Earnings in the first half of 2018 included after-tax charges totaling $5 million largely related to restructuring charges, acquisition costs and the effect of income tax rate changes on deferred tax items. Earnings in the first half of 2017 included net after-tax charges of $34.9 millionprimarily related to lump-sum pension settlements, restructuring charges and acquisition-related expenses.
Sonoco is a global provider of a variety of consumer packaging, industrial products, protective packaging, and displays and packaging supply chain services.
