Company Increases Full-Year 2022 Guidance
Second Quarter Highlights
- Net sales were a record
$1.91 billion, an approximately 38 percent increase from last year's second quarter 2021 sales of $1.38 billion.
- GAAP net income per diluted share was
$1.33, compared with a loss of $(3.34)in the same period in 2021.
- GAAP net income includes net after-tax, non-base charges totaling
$42.1 million, or $0.43per diluted share. These charges largely consist of amortization of acquired intangibles, acquisition-related expenses, including certain aspects of purchase accounting, other restructuring costs, and an increase in the Last In, First Out ("LIFO") inventory reserve. In the second quarter of 2021, GAAP earnings included net after-tax, non-base charges of $427.8 million, or $4.27per diluted share, as further described in the Second Quarter Review.
- Base net income attributable to
Sonoco("base earnings") was $1.76per diluted share, an approximately 89 percent increase from $0.93per diluted share in the same period of 2021. The 2021 base earnings results throughout the release have been revised to conform with the Company’s base earnings definition which excludes amortization of acquisition intangibles. (See base earnings definition, explanation and reconciliation to GAAP earnings later in this release.)
- Cash flow from operations was
$184.5 millionfor the first half of 2022, compared with $102.0 millionin the same period of 2021. Free cash flow was a provision of $40.3 million, compared with $9.4 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 Third-quarter and Full-Year Guidance
- Third-quarter base earnings is expected to be in a range of
$1.35to $1.45per diluted share. Base net income for the third quarter of 2021 was $1.00per diluted share.
- The Company has increased its outlook for full-year base earnings to a range of
$6.20to $6.30per diluted share. Full-year base earnings per diluted share in 2021 was $3.93.
- Full-year 2022 guidance for cash provided from operations remains unchanged at a range of
$690 millionto $740 millionand free cash flow guidance remains at $365 millionto $415 million.
Note: Third-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,
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