Company Raises Full-Year 2022 Guidance
First Quarter Highlights
- First quarter 2022 net sales were a record
$1.77 billion, compared with $1.35 billionin the same period in 2021.
- First quarter 2022 GAAP earnings per diluted share were
$1.17, compared with $0.71in the same period in 2021.
- First quarter 2022 GAAP earnings include net after-tax, non-base charges totaling
$67.4 million, or $0.68per diluted share. These charges largely relate to the acquisition of Ball Metalpack, rebranded as Sonoco Metal Packaging, changes in the Last In, First Out ("LIFO") inventory reserve, and the amortization expense of acquisition intangibles. In the first quarter of 2021, GAAP earnings included net after-tax, non-base charges of $29.0 million, or $0.29per diluted share, as further described in the First Quarter Review.
- Base net income attributable to
Sonoco(base earnings) for the first quarter 2022 was a record $1.85per diluted share, compared with $1.00per diluted share in the same period of 2021. 2021 base results throughout the release have been revised to conform with the Company’s current Base Earnings definition which excludes amortization of acquisition intangibles. The Company recently provided updated first quarter guidance of $1.70to $1.80per diluted share. (See base earnings definition, explanation and reconciliation to GAAP earnings later in this release.)
- Cash flow from operations was
$1.1 millionin the first quarter of 2022, compared to $138.7 millionin the same period of 2021. Free cash flow was a use of $66.3 millionin the first quarter of 2022, compared with $99.4 milliongenerated in the same period of 2021. (See free cash flow definition, explanation and reconciliation to cash flow from operations later in this release.)
2022 Second Quarter and Full-Year Guidance
- Second quarter base earnings are expected to be in a range of
$1.20to $1.30per diluted share. Base earnings for the second quarter of 2021 were $0.93per diluted share.
- The Company has updated its outlook for full-year base earnings to a range of
$5.25to $5.45per diluted share. Full-year base earnings per diluted share in 2021 was $3.93.
- Full-year 2022 guidance for cash provided from operations is unchanged at a range of
$690 millionto $740 millionand free cash flow guidance remains at $365 millionto $415 million.
Note: Second-quarter and full-year 2022 GAAP guidance are 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/divestiture-related costs, 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 financial results.
Commenting on the Company’s performance,
Legal Notice: Paper Advance is not responsible for the accuracy or availability of content on external websites.