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Sonoco Reaffirms FY19 Outlook

Packaging company Sonoco (SON), Friday reaffirmed its earnings forecast for the fourth quarter and full year 2019.

Sonoco expects fourth-quarter and full-year earnings of $0.54 to $0.64 and $2.98 to $3.08 per share, respectively.

On an adjusted basis, the company continues to see fourth-quarter and full-year earnings to be $0.72 to $0.76 and $3.50 to $3.54 per share, respectively, which reaffirms Sonoco's previously communicated guidance. Analysts polled by Thomson Reuters currently estimate earnings of $0.75 and 3.54 per share for the fourth quarter and full year, respectively.

The full-year range includes amounts previously disclosed by the company of about $0.34 per diluted share, largely consisting of restructuring and non-operating pension costs partially offset by a gain relating to the release of an environmental reserve.

Meanwhile, Sonoco estimates 2020 adjusted earnings of $3.65 to $3.75 per share, with a projected mid-point target of $3.70 per share. Analysts currently estimate earnings of $3.65 per share.

Commenting on the company's 2019 and 2020 expectations, Sonoco President and CEO Rob Tiede said, "We are extremely pleased with how our team is managing our business during challenging market conditions in 2019, while putting us on pace to achieve another year of record base earnings. 2020 is shaping up to be a year full of opportunities and challenges. While I'm hopeful that market conditions improve, we know that hope is not a strategy, and we must remain intensely focused on what we can control, while being flexible when needed. Sonoco has evolved and strengthened over the past 120 years, and I'm excited about what we are capable of becoming as we enter the next decade."

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