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 $0.73in 2019.
- First-quarter 2020 GAAP earnings included net after-tax charges of
$14.8 millionrelated 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 millionrelated to restructuring actions and non-operating pension costs.
- Base net income attributable to
Sonoco(base earnings) for first-quarter 2020 was $0.94per diluted share, compared with $0.85in 2019. (See base earnings definition, explanation and reconciliation to GAAP earnings later in this release.) Sonocopreviously provided first-quarter 2020 base earnings guidance of $0.83to $0.89per diluted share.
- First-quarter 2020 net sales were
$1.30 billion, compared with $1.35 billionin 2019.
- Cash flow from operations was
$87.7 millionin the first three months of 2020, compared with $92.3 millionin 2019. Free cash flow was $13.7 million, compared with $9.5 millionin 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2020 Full-Year Guidance Withdrawn; Second Quarter Guidance Provided
Sonocohas withdrawn its full-year 2020 guidance for base earnings, cash flow from operations and free cash flow due to the unknown severity and duration of the COVID-19 pandemic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
$0.73to $0.83, compared to $0.95per 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 stronger U.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.
Commenting on the Company’s first-quarter performance,