<b>Sonoco Reports Drop in Sales, Income</b>

Sonoco reported sales for the first quarter were $632.8 million, versus $676.3 million in the same period last year. Net income for the first quarter, excluding one-time transactions, was $35.5 million, versus $45 million in the first quarter of 2000.

"Although the company continues to maintain or increase its market share in all its principal businesses, our first quarter results were adversely affected by unit volume decreases averaging about 5%, principally in our North American engineered carriers/paper and composite can businesses. This decline reflects the impact on our customers of the continuing general economic weakness in the United States," said Harris DeLoach, Jr.,, CEO of Sonoco. "Other major factors hurting the first quarter results were $5 million of higher energy costs and lower prices and demand for trade sales of recovered paper," he added.

In its quarterly report Sonoco said that to reach its growth objective the company is planning to remove around $30 million in annualized costs, including the elimination of around 630 positions and the closing of 13 plants.