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Sonoco Products Declares $0.37 Per Share Quarterly Dividend

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Price movement

Sonoco Products (SON) has a market cap of $5.1 billion. It fell by 0.04% to close at $50.94 per share on July 20, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -1.1%, 5.7%, and 26.7%, respectively, on the same day.

SON is trading 2.8% above its 20-day moving average, 5.8% above its 50-day moving average, and 16.1% above its 200-day moving average.

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Related ETF and peers

The PowerShares S&P Mid-Cap Low Volatility ETF (XMLV) invests 1.3% of its holdings in Sonoco. The ETF tracks a volatility-weighted index of the 80 least volatile S&P Mid-Cap 400 companies. The YTD price movement of XMLV was 16.0% on July 20, 2016.

The market caps of Sonoco Products’ competitors are as follows:

  • WestRock (WRK): $11.1 billion
  • AptarGroup (ATR): $5.1 billion
  • Bemis (BMS): $4.9 billion

Sonoco declared dividend

Sonoco Products has declared a quarterly dividend of $0.37 per share on its common stock. The dividend will be paid on September 9, 2016, to shareholders of record as of August 12, 2016.

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Performance of Sonoco Products in fiscal 1Q16

Sonoco Products reported fiscal 1Q16 net sales of $1.23 billion, a rise of 1.7% compared to net sales of $1.2 billion in fiscal 1Q15. Sales for the consumer packaging, paper and industrial converted products, and protective solutions segments rose by 1.4%, 0.19%, and 11.4%, respectively. Sales for the display and packaging segment fell by 1.0% in fiscal 1Q16 compared to fiscal 1Q15.

Its net income and EPS (earnings per share) fell to $59.9 million and $0.59, respectively, in fiscal 1Q16. That compares to $85.8 million and $0.84, respectively, in fiscal 1Q15.

SON’s cash and cash equivalents fell by 16.5%, and its inventories rose by 4.4% in fiscal 1Q16 compared to fiscal 4Q15. Its current ratio rose to 1.44x, and its debt-to-equity ratio fell to 1.55x in fiscal 1Q16. That compares to a current ratio and debt-to-equity ratio of 1.42x and 1.62x, respectively, in fiscal 4Q15.

Projections

The company has made the following projection for fiscal 2Q16:

  • EPS of $0.65–$0.70

The company has made the following projections for fiscal 2016:

  • EPS of $2.64–$2.74
  • effective tax rate of 32%
  • free cash flow of ~$140 million

Now we’ll take a look at Johnson Controls.

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