Yahoo Finance Sonoco (SON) to Open Plant in Turkey to Boost Sonopost Output
Sonoco SON recently announced plans to open a protective packaging facility in Bursa, Turkey. The hub will further expand the manufacturing of Sonopost corner posts in Europe.
Last year, SON started a Sonopost plant in Sochaczew, Poland, to introduce its proprietary Sonopost packaging technology in Europe. Sonoco tasted immense success from this technology, and owing to growing demand, management realized the need for a second production site. The new plant in Turkey is expected to start in the fourth quarter of 2022.
Sonopost corner posts are designed to offer high-quality stacking strength, unit protection and crush-resistance. With this technology, manufacturers can confidently pack and stack their products without worrying about using plastic-based packaging materials. It effectively safeguards white goods, heating, ventilation, and air-conditioning (HVAC) systems, and heat pumps from manufacturing or shipment damage.
Moreover, the corner posts support bulk loads and secure the same into tight units. Corner posts increase stackability, and help reduce inventory space. In addition to decreasing expanded polystyrene and plastic packaging, the method also aids in curbing carbon emissions.
Sonoco aims to develop more sustainable packaging solutions for preserving the planet and posterity. Almost 100% recycled paperboard from SON mills is used to make Sonopost that can be redirected to the paper stream after use.
Sonoco is a global provider of packaging products. SON manufactures paperboard mostly from recycled materials for open market sale as well as internal use. The Zacks Consensus Estimate for SON’s current-year earnings is pegged at $6.47 per share, suggesting growth of 82.2% from the year-ago reported figure. The estimate has been revised 3% downward in the past 60 days. SON has a trailing four-quarter average surprise of 6.2%.
Price Performance
Sonoco’s shares have lost 3.2% in the past year compared with the industry’s decline of 6%.
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Zacks Rank & Stocks to Consider
Sonoco currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Industrial Products sector are Hubbell HUBB, OI Glass OI and Titan International TWI. While HUBB and OI flaunt a Zacks Rank #1 (Strong Buy), TWI carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Hubbell has an estimated current-year earnings growth rate of 29.3% from the year-ago reported figure. The earnings estimates have been revised 6.6% upward in the past 60 days. HUBB has an average trailing four-quarter earnings surprise of 10.6%. Its shares have gained 22.5% over the past year.
OI Glass’ earnings surprise in the last four quarters was 14.9%, on average. In the past 60 days, its earnings estimates have increased 14.3% for 2022. For the ongoing year, the bottom line is estimated to grow 6.1% from the previous-year level. The OI stock has gained 41% in the past year.
Titan International delivered a trailing four-quarter earnings surprise of 49.6%, on average. Current-year earnings are estimated to grow 161.1% from the year-ago reported figure. TWI’s shares have risen 90.4% in the past year.
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