Provides COVID-19 Update and Withdraws Full-year 2020 Guidance Due to Uncertainty
First Quarter Highlights
- First-quarter 2020 GAAP earnings per diluted share were
$0.80 , compared with$0.73 in 2019. - First-quarter 2020 GAAP earnings included net after-tax charges of
$14.8 million related primarily to restructuring actions and non-operating pension costs. In the first quarter of 2019, GAAP earnings included net after-tax charges of$12.5 million related to restructuring actions and non-operating pension costs. - Base net income attributable to
Sonoco (base earnings) for first-quarter 2020 was$0.94 per diluted share, compared with$0.85 in 2019. (See base earnings definition, explanation and reconciliation to GAAP earnings later in this release.)Sonoco previously provided first-quarter 2020 base earnings guidance of$0.83 to$0.89 per diluted share. - First-quarter 2020 net sales were
$1.30 billion , compared with$1.35 billion in 2019. - Cash flow from operations was
$87.7 million in the first three months of 2020, compared with$92.3 million in 2019. Free cash flow was$13.7 million , compared with$9.5 million in the first three months of 2019. (See free cash flow definition and reconciliation to cash flow from operations later in this release.)
2020 Full-Year Guidance Withdrawn; Second Quarter Guidance Provided
Sonoco has withdrawn its full-year 2020 guidance for base earnings, cash flow from operations and free cash flow due to the unknown severity and duration of the COVID-19 pandemic and the related lack of visibility to the impact on the Company's served markets.- The Company is providing second-quarter base earnings guidance of
$0.73 to$0.83 , compared to$0.95 per diluted share in the second quarter of 2019. The Company's wide guidance range reflects uncertainties regarding challenging macroeconomic conditions stemming from the pandemic, including the negative impact of higher recycled fiber costs and a strongerU.S. dollar.
Note: Second-quarter 2020 GAAP guidance is not provided in this release due to the likely occurrence of one or more of the following, the timing and magnitude of which we are unable to reliably forecast: restructuring costs and restructuring-related impairment charges, acquisition-related costs, possible gains or losses on the sale of businesses or other assets, and the income tax effects of these items and/or other income tax-related events. These items could have a significant impact on the Company's future GAAP results.
CEO Comments
Commenting on the Company’s first-quarter performance,
Source: Sonoco