Sonoco Products reported sales from continuing operations for the third quarter were $688.1 million, versus $686.8 million for the same period in 2002. Net income from continuing operations for the third quarter of 2003 was $10.4 million, versus $27 million in the third quarter of 2002.
The company expects to announce in the fourth quarter and throughout 2004, the closing of an additional 10 to 15 plants targeted to achieve savings of about $11 million in annualized fixed cost reductions.
"Sales for the third quarter were basically flat, compared with the same period last year, primarily reflecting lower volumes in most of the company's businesses, offset partially by the favorable impact of foreign exchange rates," said Harris DeLoach, Jr., president and CEO.
"Third quarter volumes were down company wide by approximately two percent, versus the same period last year. Volume declines in the company's industrial segment resulted principally from decreased demand in Sonoco's cable and wire reels business, molded plastics operations and engineered carriers and paper operations. In the consumer segment, volumes declined in the rigid paper and plastic packaging, flexible packaging and packaging services businesses," stated DeLoach.
For the first nine months, sales from continuing operations were $2.03 billion, versus $2 billion in the same period last year. Net income from continuing operations for the first nine months was $59.1 million, versus $95 million in the same period of last year. Net income from continuing operations for the first nine months included charges related to restructuring actions of $33.1 million, compared with restructuring charges of $7.5 million during the same period last year.