Sonoco (SON) shares rallied 5% in the last trading session to close at $45.74. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 2.6% loss over the past four weeks.Sonoco’s shares gained since the company announced it will report the second quarter 2025 results on July 23. In the first quarter of 2025, Sonoco reported adjusted earnings per share of $1.38 in the first quarter of 2025. The bottom line improved 23 ...

Core Viewpoint - International Paper has completed the divestiture of five European plants to PALM Group to meet regulatory commitments from its acquisition of DS Smith Plc [1][2]. Group 1: Company Overview - International Paper is a global leader in sustainable packaging solutions, headquartered in Memphis, Tennessee, with operations in over 30 countries and more than 65,000 employees [3]. - The company reported net sales of $18.6 billion for 2024 and acquired DS Smith in 2025, enhancing its position in the North American and EMEA regions [3]. Group 2: Details of the Divestiture - The divestiture includes three plants in Normandy, France, one box plant in Ovar, Portugal, and one box plant in Bilbao, Spain [1]. - This sale was part of the agreement with the European Commission to satisfy obligations related to the acquisition of DS Smith Plc [2]. Group 3: About PALM Group - PALM is a family-owned company based in Aalen, Germany, and is a leading European producer of containerboard, graphic paper, and corrugated packaging [4]. - In 2024, PALM operated five paper mills and 33 corrugated box plants in Europe, employing 4,200 people and achieving a turnover of €2 billion [4].

Company to Exit Molded Fiber Business; Additional Facility Changes PlannedMEMPHIS, Tenn., June 26, 2025 /PRNewswire/ -- International Paper (NYSE: IP; LSE: IPC), a global leader in sustainable packaging, today announced a series of strategic changes to strengthen its North American operations and better serve customers.As part of this initiative, the company will: Exit the molded fiber business and convert the Reno, Nev. facility to support its packaging business Close its packaging facility in Marion, Ohio ...

Greif (GEF) came out with quarterly earnings of $1.19 per share, beating the Zacks Consensus Estimate of $1.08 per share. This compares to earnings of $0.82 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 10.19%. A quarter ago, it was expected that this industrial packaging company would post earnings of $0.72 per share when it actually produced earnings of $0.39, delivering a surprise of -45.83%.Over the last four quarters, t ...

Core Insights - Smurfit Westrock Plc (SW) is benefiting from asset optimization and business improvement initiatives, positioning the company for long-term growth and profitability [1][8] - The company faces challenges from merger-related costs, higher freight and chemical costs, labor shortages, and supply chain issues, which are expected to impact margins [2][14] Company Transformation - Since 2023, Smurfit Westrock has closed underperforming facilities, divested non-core assets, and streamlined operations to enhance efficiency and cost savings [1][7] - The merger of Smurfit Kappa and WestRock on July 5, 2024, is expected to deliver significant growth potential due to their complementary portfolios and geographic reach across 42 countries [3][4] Operational Developments - In Q1 2025, Smurfit Westrock invested in containerboard, corrugated, and consumer systems, expanding its Bag-in-Box offerings and upgrading mill systems for efficiency and environmental improvements [5][9] - The company has closed 32 packaging facilities and three mills since early 2023, with a capacity reduction of approximately 600,000 tons [7][8] Market Demand - There is a growing demand for sustainable, fiber-based packaging solutions, particularly in the beverage, healthcare, retail, and food sectors [9][10] - The rise in e-commerce activities is expected to further support demand for packaging solutions, with global e-commerce revenues projected to reach $4.32 trillion by 2025 [11] Financial Performance - In Q1 2025, Smurfit Westrock's cost of sales increased by 173.9% year-over-year, with transaction and integration-related costs amounting to $395 million [12][13] - The company's stock has declined by 14.8% over the past six months, compared to an 8% decline in the industry [15]

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $90 million with a margin of 11% for the first quarter [9] - Adjusted operating earnings were $0.68 per share, with free cash flow expected to be lower than the previous quarter due to timing issues [10][9] - The company returned nearly $40 million in cash to shareholders, including an $18 million dividend and $20 million in share repurchases [8] Business Line Data and Key Metrics Changes - The company faced operational challenges in North America, impacting financial performance by approximately $10 million [11] - Planned maintenance outage costs increased by $9 million due to major outages at specific mills [13] - Volume decreased by 30 million, primarily due to seasonally weak demand in Latin America and operational challenges in North America [12] Market Data and Key Metrics Changes - In Europe, demand decreased by 7% year-over-year, while Latin America saw a 3% increase in demand, mainly driven by Brazil [17] - North American apparent demand was down about 1% year-over-year, influenced by higher imports [17] - The company anticipates real demand to decline by 3% to 4% for the year, with domestic industry supply reduced by 10% due to mill closures [18] Company Strategy and Development Direction - The company plans to leverage its global footprint to improve product mix and customer service in North America [19] - A focus on reducing costs and improving product mix is emphasized, particularly in the European market [23] - The company aims for a significantly better adjusted EBITDA performance in the second half of the year, driven by lower maintenance costs and improved operations [20] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about a global economic slowdown and potential inflation risks on raw materials and transportation [24] - The company is well-positioned to manage through tariff uncertainties, with over 90% of raw materials sourced locally [26] - Future capital allocation strategies will focus on maintaining a strong financial position while investing in business growth [28] Other Important Information - The company has reduced its debt significantly, with a leverage ratio now at 1.1 times, and has no major maturities until 2027 [14] - A seamless CEO and CFO succession plan is in place as the current CEO prepares for retirement [31] Q&A Session Summary Question: Can you provide more detail on the operational issues? - The operational issues were primarily reliability problems at the Ticonderoga and Eastover mills, with an intermittent issue expected to be resolved soon [37] Question: How do you expect to recover orders in the third quarter? - The company anticipates a benefit of less than $10 million from recovering orders that were pushed into the third quarter due to operational challenges [39] Question: What upgrades are being made at the Saia mill? - Investments in new capabilities at the Saia mill will allow entry into specialty roll segments, improving product mix [50] Question: How are you addressing wood cost increases at the Newmala mill? - Strategies include sourcing directly from landowners and importing lower-cost wood, targeting at least a 10% reduction in wood costs [53] Question: What is the outlook for capital spending for the year? - The company maintains its full-year capital spending guidance of $220 million to $240 million, with significant cash flow expected in the second half of the year [62][63]

Core Viewpoint - Karat Packing (KRT) reported quarterly earnings of $0.33 per share, exceeding the Zacks Consensus Estimate of $0.31 per share, but down from $0.40 per share a year ago, indicating a 17.5% year-over-year decline in earnings [1][2] Financial Performance - The company achieved revenues of $103.62 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.26% and showing a year-over-year increase from $95.61 million [2] - Over the last four quarters, Karat Packing has only surpassed consensus EPS estimates once and has topped revenue estimates just once [2] Stock Performance - Karat Packing shares have declined approximately 11.2% since the beginning of the year, compared to a decline of 4.3% for the S&P 500 [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.51 on revenues of $121.97 million, and for the current fiscal year, it is $1.60 on revenues of $461.89 million [7] - The trend of estimate revisions for Karat Packing has been unfavorable leading up to the earnings release [6] Industry Context - The Containers - Paper and Packaging industry, to which Karat Packing belongs, is currently ranked in the bottom 41% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact investor sentiment [5]

Industry Overview - The Zacks Containers - Paper and Packaging industry is experiencing weak demand due to lower consumer spending amid inflation, but pricing actions by industry players are expected to mitigate the impacts of supply-chain disruptions and elevated costs [1][4] - The industry is supported by rising e-commerce activities and increasing demand for sustainable packaging options due to environmental concerns [1][5] Market Dynamics - The industry has faced volume declines as consumers reduce spending and inventory levels, impacting top-line performance [4] - Supply-chain disruptions and higher costs for materials, labor, and transportation, along with tariffs, are adding pressure on margins [4] - Companies are implementing pricing strategies and cost-reduction actions to counter these challenges [4] E-commerce Impact - E-commerce accounted for over 19% of global retail sales in 2023, with revenues projected to reach $4.3 trillion by 2025, growing at a CAGR of 8% from 2025 to 2029 [5] - The U.S. online retail market is expected to exceed $1.5 trillion by 2026, while China's e-commerce market is projected to reach $2 trillion by 2027 [5] - The industry has significant exposure (over 60%) to consumer-oriented markets, ensuring stable demand for packaging solutions [5] Eco-Friendly Trends - There is a growing preference for biodegradable packaging materials driven by increased consumer awareness of environmental issues [6] - The industry is adopting new technologies and innovative products to meet this demand, including incorporating recycled content into production [6] Industry Performance - The Zacks Containers - Paper and Packaging industry ranks 149 out of 246 Zacks industries, placing it in the bottom 39% [8][9] - The industry has underperformed the S&P 500, declining 13.3% over the past year compared to the S&P 500's growth of 9.1% [10] Valuation Metrics - The industry is currently trading at a forward 12-month EV/EBITDA ratio of 19.76X, higher than the S&P 500's 12.88X and the Industrial Products sector's 19.30X [13] - Over the last five years, the industry has traded between 16.28X and 24.25X, with a median of 20.60X [16] Company Highlights - **Brambles (BXBLY)**: Reported a 1% year-over-year revenue increase to $4.9 billion, with expectations of 4-5% revenue growth in fiscal 2025 and underlying profit growth of 8-11% [17][18] - **AptarGroup (ATR)**: The Pharma segment is seeing healthy demand for drug delivery systems, with a focus on acquisitions to expand technology and market presence [22][23] - **Amcor (AMCR)**: Recently merged with Berry Global, expecting $260 million in pre-tax synergies in fiscal 2026 and projected annual cash flow exceeding $3 billion by FY28 [26][27]

Sealed Air (SEE) came out with quarterly earnings of $0.81 per share, beating the Zacks Consensus Estimate of $0.67 per share. This compares to earnings of $0.78 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 20.90%. A quarter ago, it was expected that this packaging company would post earnings of $0.67 per share when it actually produced earnings of $0.75, delivering a surprise of 11.94%.Over the last four quarters, the comp ...

AptarGroup (ATR) came out with quarterly earnings of $1.20 per share, beating the Zacks Consensus Estimate of $1.16 per share. This compares to earnings of $1.26 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 3.45%. A quarter ago, it was expected that this maker of consumer-product dispensing systems would post earnings of $1.26 per share when it actually produced earnings of $1.52, delivering a surprise of 20.63%.Over the la ...