Jul 21, 2005. /Lesprom Network/. Sonoco, the global packaging company, reported earnings per diluted share for the second quarter of 2005 of $0.40, versus $0.37 for the same period in 2004, it was announced by Harris E. DeLoach, Jr., Chairman, President and Chief Executive Officer. Earnings for the second quarter of 2005 were negatively impacted by after-tax restructuring costs of $5.6 million ($0.05 per diluted share) related to previously announced restructuring actions, and earnings for the second quarter of 2004 were negatively impacted by after-tax restructuring charges of approximately $3.7 million ($0.04 per diluted share). Excluding the impact of restructuring charges, base earnings per share totaled $0.45 for the second quarter of 2005, compared with $0.41 for the second quarter of 2004. Net sales for the second quarter of 2005 were $878 million, versus $764 million for the same period in 2004. "The increase in sales for the second quarter of 2005 primarily reflects increased volume and higher average prices for flexible packaging, rigid paper and plastic containers, easy-open closures, wire and cable reels and protective packaging; the acquisition of CorrFlex Graphics, LLC, in May 2004; and the formation of the joint venture between the European engineered carriers and coreboard operations of Sonoco and Ahlstrom Corporation," stated Mr. DeLoach. Net income for the second quarter of 2005 was $40.2 million, versus $36.7 million for the second quarter of 2004. Excluding the impact of the previously discussed restructuring charges, base earnings totaled $45.8 million and $40.4 million for the second quarters of 2005 and 2004, respectively. "The increase in year-over-year base earnings was primarily the result of the acquisition in May 2004 of CorrFlex Graphics, LLC; increased volumes in the Consumer Packaging segment; productivity initiatives; and a lower effective tax rate. Despite higher year-over-year material costs, the company was able to produce a positive price/cost relationship during the quarter," added Mr. DeLoach. Second quarter 2005 sales for the Engineered Carriers and Paper segment were $368 million, versus $342 million for the same period in 2004. Operating profit for the Engineered Carriers and Paper segment for the second quarter was $26.5 million, versus $35.9 million for the second quarter of 2004. Second quarter 2005 sales in this segment increased primarily due to the formation of the Sonoco-Alcore joint venture and higher selling prices of domestic engineered carriers and paperboard, partially offset by lower volume in North America and Europe. Operating profit in this segment fell year-over- year as a result of lower volumes and the mix of business, costs associated with the integration of Sonoco and Ahlstrom operations in Europe and the impact of higher costs for energy, freight and labor. These negative factors were partially offset by a favorable price/cost relationship in North America, productivity improvements and cost reductions resulting from restructuring actions. The Engineered Carriers and Paper segment includes the following products: high-performance paper and composite engineered carriers; fiber-based construction tubes and forms; paperboard; and recovered paper. Sonoco, founded in 1899, is a $3.2 billion global manufacturer of industrial and consumer products and provider of packaging services, with more than 300 operations in 35 countries, serving customers in some 85 nations.