The following is a summary of the Sonoco Products Company (SON) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Sonoco Products reported Q3 sales of $1.68 billion, with a 2% decrease influenced by strategic actions.

• Adjusted EBITDA reached $281 million, with EBITDA margins strong at 16.8%.

• Adjusted earnings per share were $1.49, and operating cash flow amounted to $162 million for the quarter.

Business Progress:

• Continued focus on driving productivity, with $39 million achieved in the quarter through supply chain savings, production efficiencies, and fixed cost reductions.

• Announced the strategic acquisition of Eviosys, enhancing the metal packaging platform.

• Actively pursuing footprint consolidations in the industrial segment and strategic alternatives for the Thermoformed & Flexible Packaging (TFP) segment to simplify portfolio and align investments.

Opportunities:

• The acquisition of Eviosys positions Sonoco as a leading global manufacturer in metal food can and aerosol packaging, expected to be accretive to earnings and cash flow.

• The divestiture plans for TFP and ThermoSafe aim to optimize the portfolio, reduce leverage, and focus capital on higher return opportunities.

Risks:

• Operational disruptions due to hurricanes impacted facilities and production, with ongoing recovery expected to affect Q4 operations.

• Industrial volumes remain flat with ongoing uncertain market conditions impacting a robust recovery.

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