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Sonoco Reports Second Quarter and Year-to-Date 2015 Financial Results

Company Completes Review of Mexico Packaging Center Misstatements


Restates Historical Consolidated Financial Results

Notifies of Late Filing of Second Quarter Form 10-Q

HARTSVILLE, S.C., Aug. 20, 2015 (GLOBE NEWSWIRE) -- Sonoco (NYSE:SON), one of the largest diversified global packaging companies, today reported consolidated financial results for the second quarter and year-to-date periods ending June 28, 2015, and restated financial results for the period ended June 29, 2014. The Company previously reported preliminary second quarter 2015 results on July 16, 2015.

Company Completes Review of Mexico Packaging Center Misstatements; Restates Historical Consolidated Financial Results; Notifies of Late Filing of Second Quarter Form 10-Q
As previously reported, in July 2015, the Company discovered the operating results for a packaging center in Irapuato, Mexico, part of the Company’s Display and Packaging segment, had been overstated since 2012. Sonoco, working with outside accounting and legal consultants, conducted a thorough review of financial results which was recently completed. Through this review, the Company determined that reported consolidated revenue and cost of sales had been misstated from 2012 through the first quarter of 2015, resulting in a cumulative overstatement of income before income taxes of $32.4 million and net income of approximately $23.3 million, or $.23 per diluted share. On July 16, 2015, the Company previously reported it expected the cumulative pre-tax impact to be approximately $3 million for the first quarter of 2015 and approximately $30 million for all prior periods, for a total of $33 million.

The Company concluded that the misstatements warranted a restatement of the Company’s financial statements for the years ended December 31, 2012, 2013, and 2014 as well as the interim periods within 2014 and the first quarter of 2015. As a result of the work required to complete its investigation of the Mexico packaging center misstatements, the Company was unable to timely file its Quarterly Report on Form 10-Q for the period ended June 28, 2015. The Company has received a letter from the New York Stock Exchange (NYSE) indicating that, as a result of its failure to timely file its 2015 second quarter Quarterly Report on Form 10-Q, the Company is not in compliance with the continued listing requirements under the timely filing criteria outlined in Section 802.01E of the NYSE-Listed Company Manual. The Company expects to file such report next week, as well as an amended 2014 Annual Report on Form 10-K/A and an amended Quarterly Report on Form 10-Q/A for the period ended March 29, 2015, containing restated financial statements for the years ended December 31, 2014, 2013, and 2012 and the first quarter of 2015. These reports will contain more information regarding the restatement’s impact to the Company’s consolidated and segment financial statements as well as information about the material weaknesses in the Company’s internal control over financial reporting. Filing these reports will also bring the Company into compliance with the NYSE listing requirements.

Tables shown in this news release detail certain restatements to previously issued financial statements. Further information about the Company’s quarter and year-to-date results for the period ended June 28, 2015, can be found in the Company’s July 16, 2015, news release reporting preliminary results for the 2015 second quarter and in a presentation on the Company’s investor relations website at www.sonoco.com.

Second Quarter Results

  • Second quarter 2015 GAAP earnings per diluted share were $.63, compared with $.57 per diluted share in the same period of 2014, as restated. On July 16, 2015, Sonoco previously reported preliminary estimated second quarter 2015 GAAP earnings per diluted share of $.61.
  • Base net income attributable to Sonoco (base earnings*) for second quarter 2015 was $.68 per diluted share, compared with $.61 in the same period of 2014, as restated. The Company previously reported estimated base earnings of $.66 per diluted share for second quarter 2015.

Year-to-date 2015 Results

  • Year-to-date 2015 GAAP earnings per diluted share were $1.47 per diluted share, compared with $1.06 in the same period in 2014, as restated. The Company previously reported year-to-date 2015 GAAP preliminary estimated results of $1.44.
  • Year-to-date 2015 base earnings were $1.22, compared with $1.11 in the same period in 2014, as restated. The Company previously reported year-to-date preliminary estimated base earnings of $1.19.

*Base earnings and base earnings per diluted share are non-GAAP financial measures adjusted to remove restructuring charges, asset impairment charges, acquisition expenses and other items, if any, the exclusion of which the Company believes improves comparability and analysis of the underlying financial performance of the business.

The following tables reconcile non-GAAP financial measures to the most closely applicable GAAP financial measures. See definition of Non-GAAP Financial Measures on page 10.

Non-GAAP Adjustments
Three Months Ended June 28, 2015 (Unaudited)GAAP Restructuring / Asset
Impairment
Charges(1)
Other Adjustments(3) Base
Net sales $ 1,248,590 $ - $ - $ 1,248,590
Cost of sales 1,008,274 - - 1,008,274
Gross profit 240,316 - - 240,316
Selling, general and administrative expenses 130,887 - (1,703) 129,184
Restructuring/Asset impairment charges 10,445 (10,445) - -
Income before interest and income taxes 98,984 10,445 1,703 111,132
Interest expense, net 13,601 - - 13,601
Income before income taxes 85,383 10,445 1,703 97,531
Provision for income taxes 24,023 3,683 3,282 30,988
Income before equity in earnings of affiliates 61,360 6,762 (1,579) 66,543
Equity in earnings of affiliates, net of taxes 3,269 - - 3,269
Net income 64,629 6,762 (1,579) 69,812
Net (income) attributable to noncontrolling interests (250) (55) - (305)
Net income attributable to Sonoco$ 64,379 $ 6,707 $ (1,579) $ 69,507
Per Diluted Share $ 0.63 $ 0.07 $ (0.02) $ 0.68
Non-GAAP Adjustments
Three Months Ended June 29, 2014 (Unaudited)GAAP
(As Restated)
Restructuring / Asset
Impairment
Charges(1)
Other Adjustments(3) Base
(As Restated)
Net sales $ 1,247,616 $ - $ - $ 1,247,616
Cost of sales 1,018,666 - - 1,018,666
Gross profit 228,950 - - 228,950
Selling, general and administrative expenses 126,455 - (1,246) 125,209
Restructuring/Asset impairment charges 3,671 (3,671) - -
Income before interest and income taxes 98,824 3,671 1,246 103,741
Interest expense, net 13,135 - - 13,135
Income before income taxes 85,689 3,671 1,246 90,606
Provision for income taxes 29,271 977 46 30,294
Income before equity in earnings of affiliates 56,418 2,694 1,200 60,312
Equity in earnings of affiliates, net of taxes 3,126 - - 3,126
Net income 59,544 2,694 1,200 63,438
Net (income) attributable to noncontrolling interests (125) (13) - (138)
Net income attributable to Sonoco$ 59,419 $ 2,681 $ 1,200 $ 63,300
Per Diluted Share $ 0.57 $ 0.03 $ 0.01 $ 0.61
(1) Restructuring/Asset impairment charges are a recurring item as Sonoco’s restructuring programs usually require several years to fully implement and the Company is continually seeking to take actions that could enhance its efficiency. Although recurring, these charges are subject to significant fluctuations from period to period due to the varying levels of restructuring activity and the inherent imprecision in the estimates used to recognize the impairment of assets and the wide variety of costs and taxes associated with severance and termination benefits in the countries in which the restructuring actions occur.
(2) Included in 2015 Restructuring/Asset impairment charges are disposal and income tax gains related to the sale of two of the Company's metal end and closures plants.
(3) Other adjustments consist primarily of acquisition-related costs and non-base income tax charges


Non-GAAP Adjustments
Six Months Ended June 28, 2015 (Unaudited)GAAP Restructuring / Asset
Impairment
Charges(1,2)
Other Adjustments(3) Base
Net sales $ 2,454,642 $ - $ - $ 2,454,642
Cost of sales 1,993,936 - - 1,993,936
Gross profit 460,706 - - 460,706
Selling, general and administrative expenses 227,552 - 29,674 257,226
Restructuring/Asset impairment charges 10,086 (10,086) - -
Income before interest and income taxes 223,068 10,086 (29,674) 203,480
Interest expense, net 26,822 - - 26,822
Income before income taxes 196,246 10,086 (29,674) 176,658
Provision for income taxes 50,244 15,276 (9,232) 56,288
Income before equity in earnings of affiliates 146,002 (5,190) (20,442) 120,370
Equity in earnings of affiliates, net of taxes 4,315 - - 4,315
Net income 150,317 (5,190) (20,442) 124,685
Net (income) attributable to noncontrolling interests (158) (70) - (228)
Net income attributable to Sonoco$ 150,159 $ (5,260) $ (20,442) $ 124,457
Per Diluted Share $ 1.47 $ (0.05) $ (0.20) $ 1.22
Non-GAAP Adjustments
Six Months Ended June 29, 2014 (Unaudited)GAAP
(As Restated)
Restructuring / Asset
Impairment
Charges(1)
Other Adjustments(4) Base
(As Restated)
Net sales $ 2,437,648 $ - $ - $ 2,437,648
Cost of sales 1,998,937 - - 1,998,937
Gross profit 438,711 - - 438,711
Selling, general and administrative expenses 250,205 - (1,270) 248,935
Restructuring/Asset impairment charges 5,663 (5,663) - -
Income before interest and income taxes 182,843 5,663 1,270 189,776
Interest expense, net 25,778 - - 25,778
Income before income taxes 157,065 5,663 1,270 163,998
Provision for income taxes 51,782 1,388 55 53,225
Income before equity in earnings of affiliates 105,283 4,275 1,215 110,773
Equity in earnings of affiliates, net of taxes 4,602 - - 4,602
Net income 109,885 4,275 1,215 115,375
Net (income) attributable to noncontrolling interests (48) (15) - (63)
Net income attributable to Sonoco$ 109,837 $ 4,260 $ 1,215 $ 115,312
Per Diluted Share $ 1.06 $ 0.04 $ 0.01 $ 1.11
(1) Restructuring/Asset impairment charges are a recurring item as Sonoco’s restructuring programs usually require several years to fully implement and the Company is continually seeking to take actions that could enhance its efficiency. Although recurring, these charges are subject to significant fluctuations from period to period due to the varying levels of restructuring activity and the inherent imprecision in the estimates used to recognize the impairment of assets and the wide variety of costs and taxes associated with severance and termination benefits in the countries in which the restructuring actions occur.
(2) Included in 2015 Restructuring/Asset impairment charges are disposal and income tax gains related to the sale of two of the Company's metal end and closures
plants.
(3) Other adjustments consist primarily of acquisition-related costs, a gain related to the release of reserves related to the partial settlement of the Fox River environmental claims, and an income tax gain from the release of a valuation allowance against tax loss carryforwards in Spain.
(4) Other adjustments consist primarily of acquisition-related costs and non-base income tax charges

Second Quarter and Year-to-Date Segment Results

Sonoco reports its financial results in four operating segments: Consumer Packaging, Paper and Industrial Converted Products, Protective Solutions, and Display and Packaging. Segment operating results do not include restructuring and asset impairment charges, acquisition expenses, interest income and expense, income taxes or certain other items, if any, the exclusion of which the Company believes improves comparability and analysis.

FINANCIAL SEGMENT INFORMATION (Unaudited)
(Dollars in thousands)
THREE MONTHS ENDED SIX MONTHS ENDED
June 29, 2014 June 29, 2014
June 28, 2015 (As Restated) June 28, 2015 (As Restated)
Net sales
Consumer Packaging$ 531,114 $ 473,666 $ 1,050,991 $ 938,591
Display and Packaging 141,604 162,751 287,389 320,179
Paper and Industrial Converted Products 448,876 490,016 871,187 945,626
Protective Solutions 126,996 121,183 245,075 233,252
Consolidated$ 1,248,590 $ 1,247,616 $ 2,454,642 $ 2,437,648
Income before interest and income taxes:
Segment operating profit:
Consumer Packaging$ 57,530 $ 42,831 $ 111,558 $ 91,014
Display and Packaging 1,035 4,727 1,873 7,542
Paper and Industrial Converted Products 38,963 46,543 66,760 76,293
Protective Solutions 13,604 9,640 23,289 14,927
Restructuring/Asset impairment charges (10,445) (3,671) (10,086) (5,663)
Other non-base income/(charges) (1,703) (1,246) 29,674 (1,270)
Consolidated$ 98,984 $ 98,824 $ 223,068 $ 182,843

About Sonoco

Founded in 1899, Sonoco is a global provider of a variety of consumer packaging, industrial products, protective packaging, and displays and packaging supply chain services. With annualized net sales of approximately $5 billion, the Company has 20,800 employees working in more than 330 operations in 34 countries, serving some of the world’s best known brands in some 85 nations. Sonoco is a proud member of the 2014/2015 Dow Jones Sustainability World Index. For more information on the Company, visit our website at www.sonoco.com.

Forward-looking Statements
Statements included in herein that are not historical in nature, are intended to be, and are hereby identified as “forward-looking statements” for purposes of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended. In addition, the Company and its representatives may from time to time make other oral or written statements that are also "forward-looking statements." Words such as “estimate,” “project,” “intend,” “expect,” “believe,” “consider,” “plan,” “strategy,” “opportunity,” "commitment," “target,” “anticipate,” “objective,” “goal,” “guidance,” “outlook,” “forecast,” “future,” "re-envision," “will,” “would,” "can," "could," "may," "might," “aspires,” "potential," or the negative thereof, and similar expressions identify forward-looking statements.

Forward-looking statements include, but are not limited to, statements regarding: availability and supply of raw materials, and offsetting high raw material costs; improved productivity and cost containment; improving margins and leveraging strong cash flow and financial position; effects of acquisitions and dispositions; realization of synergies resulting from acquisitions; costs, timing and effects of restructuring activities; adequacy and anticipated amounts and uses of cash flows; expected amounts of capital spending; refinancing and repayment of debt; financial strategies and the results expected of them; financial results for future periods; producing improvements in earnings; profitable sales growth and rates of growth; market leadership; research and development spending; extent of, and adequacy of provisions for, environmental liabilities; adequacy of income tax provisions, realization of deferred tax assets, outcomes of uncertain tax issues and tax rates; goodwill impairment charges and fair values of reporting units; future asset impairment charges and fair values of assets; anticipated contributions to pension and postretirement benefit plans, fair values of plan assets, long-term rates of return on plan assets, and projected benefit obligations and payments; creation of long-term value and returns for shareholders; continued payment of dividends; and planned stock repurchases.

Such forward-looking statements are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management. Such information includes, without limitation, discussions as to guidance and other estimates, perceived opportunities, expectations, beliefs, plans, strategies, goals and objectives concerning our future financial and operating performance. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict.

Therefore, actual results may differ materially from those expressed or forecasted in such forward-looking statements. The risks, uncertainties and assumptions include, without limitation:

  • availability and pricing of raw materials, energy and transportation, and the Company's ability to pass raw material, energy and transportation price increases and surcharges through to customers or otherwise manage these commodity pricing risks;
  • costs of labor;
  • work stoppages due to labor disputes;
  • success of new product development, introduction and sales;
  • consumer demand for products and changing consumer preferences;
  • ability to be the low-cost global leader in customer-preferred packaging solutions within targeted segments;
  • competitive pressures, including new product development, industry overcapacity, and changes in competitors' pricing for products;
  • ability to maintain or increase productivity levels, contain or reduce costs, and maintain positive price/cost relationships;
  • ability to improve margins and leverage cash flows and financial position;
  • continued strength of our paperboard-based tubes and cores and composite can operations;
  • ability to manage the mix of business to take advantage of growing markets while reducing cyclical effects of some of the Company's existing businesses on operating results;
  • ability to maintain innovative technological market leadership and a reputation for quality;
  • ability to profitably maintain and grow existing domestic and international business and market share;
  • ability to expand geographically and win profitable new business;
  • ability to identify and successfully close suitable acquisitions at the levels needed to meet growth targets, and successfully integrate newly acquired businesses into the Company's operations;
  • the costs, timing and results of restructuring activities;
  • availability of credit to us, our customers and suppliers in needed amounts and on reasonable terms;
  • effects of our indebtedness on our cash flow and business activities;
  • fluctuations in obligations and earnings of pension and postretirement benefit plans;
  • accuracy of assumptions underlying projections of benefit plan obligations and payments, valuation of plan assets, and projections of long-term rates of return;
  • cost of employee and retiree medical, health and life insurance benefits;
  • resolution of income tax contingencies;
  • foreign currency exchange rate fluctuations, interest rate and commodity price risk and the effectiveness of related hedges;
  • changes in U.S. and foreign tax rates, and tax laws, regulations and interpretations thereof;
  • accuracy in valuation of deferred tax assets;
  • accuracy of assumptions underlying projections related to goodwill impairment testing, and accuracy of management's assessment of goodwill impairment;
  • accuracy of assumptions underlying fair value measurements, accuracy of management's assessments of fair value and fluctuations in fair value;
  • liability for and anticipated costs of environmental remediation actions;
  • effects of environmental laws and regulations;
  • operational disruptions at our major facilities;
  • failure or disruptions in our information technologies;
  • loss of consumer or investor confidence;
  • ability to protect our intellectual property rights;
  • actions of domestic or foreign government agencies and changes in laws and regulations affecting the Company;
  • international, national and local economic and market conditions and levels of unemployment; and
  • economic disruptions resulting from terrorist activities and natural disasters.

The Company undertakes no obligation to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events discussed herein might not occur.

Additional information concerning some of the factors that could cause materially different results is included in the Company’s reports on forms 10-K, 10-Q and 8-K filed with the Securities and Exchange Commission. Such reports are available from the Securities and Exchange Commission’s public reference facilities and its website, sec.gov, and from the Company’s investor relations department and the Company’s website, www.sonoco.com.

References to our Website Address
References to our website address and domain names throughout this release are for informational purposes only, or to fulfill specific disclosure requirements of the Securities and Exchange Commission’s rules or the New York Stock Exchange Listing Standards. These references are not intended to, and do not, incorporate the contents of our website by reference into this release.

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(Dollars in thousands)
December 31, 2014
June 28, 2015 (As Restated)
Assets
Current Assets:
Cash and cash equivalents$ 217,775 $ 161,168
Trade accounts receivable, net of allowances 676,578 653,737
Other receivables 41,003 38,580
Inventories 417,969 420,276
Prepaid expenses and deferred income taxes 95,507 100,028
1,448,832 1,373,789
Property, plant and equipment, net 1,114,375 1,148,607
Goodwill 1,160,932 1,177,962
Other intangible assets, net 265,696 280,935
Other assets 215,654 212,618
$ 4,205,489 $ 4,193,911
Liabilities and Shareholders’ Equity
Current Liabilities:
Payable to suppliers and other payables$ 816,004 $ 851,314
Notes payable and current portion of long-term debt 146,780 52,280
Income taxes payable 7,541 8,599
$ 970,325 $ 912,193
Long-term debt, net of current portion 1,124,580 1,200,885
Pension and other postretirement benefits 444,293 444,231
Deferred income taxes and other 123,156 132,755
Total equity 1,543,135 1,503,847
$ 4,205,489 $ 4,193,911


CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(Dollars and shares in thousands except per share)
THREE MONTHS ENDED SIX MONTHS ENDED
June 29, 2014 June 29, 2014
June 28, 2015 (As Restated) June 28, 2015 (As Restated)
Net sales $ 1,248,590 $ 1,247,616 $ 2,454,642 $ 2,437,648
Cost of sales 1,008,274 1,018,666 1,993,936 1,998,937
Gross profit 240,316 228,950 460,706 438,711
Selling, general and administrative expenses 130,887 126,455 227,552 250,205
Restructuring/Asset impairment charges 10,445 3,671 10,086 5,663
Income before interest and income taxes$ 98,984 $ 98,824 $ 223,068 $ 182,843
Net interest expense 13,601 13,135 26,822 25,778
Income before income taxes and equity in earnings of affiliates 85,383 85,689 196,246 157,065
Provision for income taxes 24,023 29,271 50,244 51,782
Income before equity in earnings of affiliates 61,360 56,418 146,002 105,283
Equity in earnings of affiliates, net of tax 3,269 3,126 4,315 4,602
Net income 64,629 59,544 150,317 109,885
Net loss attributable to noncontrolling interests (250) (125) (158) (48)
Net income attributable to Sonoco$ 64,379 $ 59,419 $ 150,159 $ 109,837
Weighted average common shares outstanding – diluted 102,424 103,446 102,362 103,590
Diluted earnings per common share$0.63 $0.57 $1.47 $1.06
Dividends per common share$0.35 $0.32 $0.67 $0.63
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)
(Dollars in thousands)
THREE MONTHS ENDED SIX MONTHS ENDED
June 29, 2014 June 29, 2014
June 28, 2015 (As Restated) June 28, 2015 (As Restated)
Net income $ 64,629 $ 59,544 $ 150,317 $ 109,885
Asset impairment charges 2,187 299 2,462 791
Depreciation, depletion and amortization 52,147 48,337 104,024 95,516
Fox River environmental reserves (488) (14,938) (33,263) (14,934)
Net pension and postretirement plan contributions 6,852 241 2,847 (34,161)
Changes in working capital 11,717 (19,007) (36,191) (75,978)
Other operating activity (24,292) (14,406) (19,955) 24,415
Net cash provided by operating activities 112,752 60,070 170,241 105,534
Purchase of property, plant and equipment, net (45,461) (46,880) (84,815) (82,298)
(Costs of acquisitions, exclusive of cash)/Proceeds from dispositions (15,697) (10,964) 13,411 (10,964)
Net debt proceeds 15,340 50,840 16,665 54,535
Cash dividends (35,116) (32,628) (67,379) (64,353)
Shares acquired under announced buyback - (18,468) - (27,103)
Other, including effects of exchange rates on cash (14,847) 6,403 8,484 6,862
Net increase/(decrease) in cash and cash equivalents 16,971 8,373 56,607 (17,787)
Cash and cash equivalents at beginning of period 200,804 191,407 161,168 217,567
Cash and cash equivalents at end of period$ 217,775 $ 199,780 $ 217,775 $ 199,780

Definition of Non-GAAP Financial Measures
The Company’s results determined in accordance with U.S. generally accepted accounting principles (GAAP) are referred to as “as reported” or "GAAP" results. Some of the information presented in this press release reflects the Company’s “as reported” or "GAAP" results adjusted to exclude amounts related to restructuring initiatives, asset impairment charges, environmental charges, acquisition costs, excess insurance recoveries, losses from the early extinguishment of debt, and certain other items, if any, the exclusion of which management believes improves comparability and analysis of the underlying financial performance of the business. These adjustments result in the non-GAAP financial measures referred to in this press release as “Base Earnings” and “Base Earnings per Diluted Share.”

These non-GAAP measures are not in accordance with, or an alternative for, generally accepted accounting principles and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Sonoco continues to provide all information required by GAAP, but it believes that evaluating its ongoing operating results may not be as useful if an investor or other user is limited to reviewing only GAAP financial measures. Sonoco uses these non-GAAP financial measures for internal planning and forecasting purposes, to evaluate its ongoing operations, and to evaluate the ultimate performance of each business unit against budget all the way up through the evaluation of the Chief Executive Officer’s performance by the Board of Directors. In addition, these same non-GAAP measures are used in determining incentive compensation for the entire management team and in providing earnings guidance to the investing community.

Sonoco management does not, nor does it suggest that investors should, consider these non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Sonoco presents these non-GAAP financial measures to provide users information to evaluate Sonoco’s operating results in a manner similar to how management evaluates business performance. Material limitations associated with the use of such measures are that they do not reflect all period costs included in operating expenses and may not reflect financial results that are comparable to financial results of other companies that present similar costs differently. Furthermore, the calculations of these non-GAAP measures are based on subjective determinations of management regarding the nature and classification of events and circumstances that the investor may find material and view differently.

To compensate for these limitations, management believes that it is useful in understanding and analyzing the results of the business to review both GAAP information which includes all of the items impacting financial results and the non-GAAP measures that exclude certain elements, as described above. Whenever Sonoco uses a non-GAAP financial measure, it provides a reconciliation of the non-GAAP financial measure to the most closely applicable GAAP financial measure. Whenever reviewing a non-GAAP financial measure, investors are encouraged to fully review and consider the related reconciliation as detailed herein.

Restated Quarterly Segment Results for 2013, 2014 and First Quarter 2015
Provided below are restated sales and operating profits, by segment, for the first quarter of 2015 and four quarters of 2013 and 2014.

THREE MONTHS ENDED (UNAUDITED)As Restated
March 29, 2015
Net sales
Consumer Packaging$ 519,877
Display and Packaging 145,785
Paper and Industrial Converted Products 422,311
Protective Solutions 118,079
Consolidated$ 1,206,052
Income before interest and income taxes:
Segment operating profit:
Consumer Packaging$ 54,028
Display and Packaging 838
Paper and Industrial Converted Products 27,797
Protective Solutions 9,685
Restructuring/Asset impairment charges 359
Other non-base income/(charges) 31,377
Consolidated$ 124,084


THREE MONTHS ENDED (UNAUDITED)As Restated As Restated As Restated As Restated
March 30, 2014 June 29, 2014 September 28, 2014 December 31, 2014
Net sales
Consumer Packaging$ 464,925 $ 473,666 $ 479,609 $ 544,697
Display and Packaging 157,428 162,751 177,364 169,272
Paper and Industrial Converted Products 455,610 490,016 480,741 476,081
Protective Solutions 112,069 121,183 124,789 126,793
Consolidated$ 1,190,032 $ 1,247,616 $ 1,262,503 $ 1,316,843
Income before interest and income taxes:
Segment operating profit:
Consumer Packaging 48,183 42,831 49,769 59,808
Display and Packaging 2,815 4,727 2,007 1,131
Paper and Industrial Converted Products 29,750 46,543 48,996 36,980
Protective Solutions 5,287 9,640 10,277 8,799
Restructuring/Asset impairment charges (1,992) (3,671) (5,908) (11,221)
Other non-base income/(charges) (24) (1,246) 888 (6,271)
Consolidated$ 84,019 $ 98,824 $ 106,029 $ 89,226
THREE MONTHS ENDED (UNAUDITED)As Restated As Restated As Restated As Restated
March 31, 2013 June 30, 2013 September 29, 2013 December 31, 2013
Net sales
Consumer Packaging$ 463,300 $ 475,013 $ 473,332 $ 481,888
Display and Packaging 147,869 159,151 172,006 159,547
Paper and Industrial Converted Products 454,207 473,217 467,847 463,609
Protective Solutions 117,131 120,510 118,610 114,420
Consolidated$ 1,182,507 $ 1,227,891 $ 1,231,795 $ 1,219,464
Income before interest and income taxes:
Segment operating profit:
Consumer Packaging 42,275 47,301 48,960 48,334
Display and Packaging 12 5,376 5,777 (1,959)
Paper and Industrial Converted Products 31,004 35,991 37,722 33,377
Protective Solutions 9,724 11,376 11,029 7,955
Restructuring/Asset impairment charges (4,289) (8,678) (5,818) (6,253)
Other non-base income/(charges) (866) (88) 563 610
Consolidated$ 77,860 $ 91,278 $ 98,233 $ 82,064

Contact: Roger Schrum +843-339-6018 roger.schrum@sonoco.com

Source:Sonoco Products Company