Oct 18, 2006. /Lesprom Network/. Sonoco, the global packaging company, reported on October 18 earnings per diluted share for the third quarter of 2006 of $0.60, an increase of 30%, compared with $0.46 for the same period in 2005, it was announced by Harris E. DeLoach, Jr., chairman, president and chief executive officer. Net sales for the third quarter of 2006 were $932 million, compared with $881 million for the same period in 2005. According to DeLoach, "Sales increased nearly six percent during the third quarter of 2006, with gains in each of the company's three business segments and in other businesses reported in all other Sonoco. Overall, growth in sales during the quarter was due primarily to higher selling prices, higher overall volume and the favorable effect of foreign currency translation." Net income for the third quarter of 2006 was $61.1 million, a 33% increase, compared with $45.9 million for the third quarter of 2005. Base earnings, a non-GAAP measure that excludes restructuring charges and certain non-recurring items, as applicable, totaled $61.7 million for the third quarter of 2006, compared with $48.4 million for the same period in 2005, a 28% increase. "The increase in year-over-year base earnings in the third quarter of 2006 reflected a continued favorable selling price/material cost relationship and the impact of productivity improvements, which were partially offset by higher energy, freight and labor costs throughout the company. The impact of higher volume had little impact on overall earnings due to the unfavorable shifts in the mix within certain businesses," said Mr. DeLoach. "Our results were also favorably impacted by the recognition of certain tax benefits, resulting in an effective tax rate of 28.6%, which was lower than we had expected. Therefore, earnings are above the upper end of the guidance levels we had established." Fourth quarter outlook The company recently announced a further cost reduction action, principally internationally focused and mainly centered in Europe, where, earlier this week, Sonoco completed the previously announced acquisition of the remaining 35.5% interest of the Sonoco-Alcore, S.a.r.l., joint venture from Ahlstrom Corporation. Significant savings resulting from the restructuring program are not expected until 2007 and the company cannot estimate the amount of restructuring charges expected to occur during the fourth quarter. Excluding any such charges and assuming no significant change in company wide volumes and/or price due to a change in general economic condition, Sonoco expects fourth quarter 2006 base earnings to be in the range of $0.53 to $0.55 per diluted share. Furthermore, the company increased its full-year 2006 base earnings guidance to be in the range of $2.11 to $2.13 per diluted share, including approximately $0.03 per diluted share related to expensing of stock options, excluding any restructuring charges or additions to environmental reserves and assuming no significant changes to general economic conditions. The company's earnings guidance reflects an expected effective tax rate of approximately 35% during the upcoming quarter. Sonoco is a global supplier of industrial and consumer packaging and a provider of innovative packaging solutions.