Earnings call transcript Q2 2023

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day and thank you for standing by. Welcome to the Second Quarter 2023 Sonoco Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Lisa Weeks, Vice President of Investor Relations. Please go ahead.

Lisa Weeks

thanks quarter for 'XX and for us Operator, second Sonoco's earnings you, to joining everyone today Thank call.

Chief Officer; Joining Coker, me Rodger Financial President Howard Fuller, and and CEO; this Rob Dillard, morning Operating Officer. are Chief

Web online evening, section The financial for at our presentation press site prepared presentation release the release reference of will available we performance that and and issued we news under quarter, during Last Relations we a highlighting our the a Investor second this www.sonoco.com. are call.

As during number call estimates, to on moment the will of materially. and are performance we forward-looking These forward-looking risks the Page Therefore expectations, X review of certain future not uncertainties. projections. differ a Please current and actual today's take reminder, to may presentation. statements discuss are guarantees of a statements a based and subject statements on results

includes presentation well operations. use under information financial section today's to which useful financial non-GAAP provides including of condition Additionally, site. Web results believes is measures, Investor financial GAAP of about reconciliations the use management as Relations the definitions company's the company's measures, information about and investors measures, to as non-GAAP of available the our Further of

XXXX. Fuller, will Rodger Howard we'll For today's and results discuss will financial second a then guidance provide summary Howard a Q&A review detailed then followed with by 'XX of our by for call, begin performance. covering quarter our will closing quarter, full-year session. the Rob for along comments, update the

to our Coker. will four our I over turn turn now the slide will call Howard to in you If CEO, presentation,

Howard Coker

but our want against Rob the area marked performance and of volumes highly in the is good progressed, virtually in you you every details, into conditions morning cash what environment. quarter basis. just to global as by start acknowledging Sonoco Lisa, strong take lower the translating market volatile on the Thank across down-shift a the business demand tell backdrop a through with flows in of pretty will that to everyone. were turbulent a you, I quarter I'll

$X.X million, For adjusted were per sales the second earnings quarter, EBITDA were net share and $X.XX. was billion, $XXX

businesses our due and global at metal safe (ph) are To programs industrials with by excellence by give destocking customers were consumer management my expectations improvements. overall, most which operational industrials items. related both perspective commercial were productivity impacted full-time and the our quarter less, for to and customers. you lower know] in and to volumes the [But businesses metal discretionary of Most above were that or affected were inventory and buying

searching are customers Our for which supply price chain. management creates demand throughout the inventory elasticity point and challenges

downstream macro-driven The priorities, with we Industrials management [are customers faced in staples, business serving (ph) near-term. Our and products goods, visibility own habits, harder and reflected volumes broader (ph). discretionary impact and their lower in is though makes changes in manufacturing household is now [Iron] are down, our and the the working promotional sector, consumer falling provide buying packaging real resolved] use which timing, capital to construction.

were quarter. we of deliver times, able the However, adjusted turbulent even though to EBITDA through in these XX%

the in flow integrity the Our our these the prior] past with reinforce results, operational and few satisfied have are stable strategy. profitability EBITDA more excellence not hard on excellent profitability the over underlying of and margins economic durability and [and improvements work portfolio commercial structural our (ph) simplification, enabled slowdowns our of we history. cash years in Though our

on for Rob the more And and with 'XX Rob? that, to call over details outlook. quarter our turn the I'll

Rob Dillard

reconciliation stated. the will well Thanks, year-over-year The on that will as quarter. unless and EPS second financial as all in found basis, the be presentation can Howard. review in I'll a this key on press discussed note, begin release. results the non-GAAP appendix metrics all be of slide with of a adjusted otherwise for be six growth GAAP Please to results

quarter financial to results said, ability low-volume the As results deliver Howard Sonoco's environment. second strong despite a

We well including and destocking improvement This record volumes price in containers other, few paper pricing expectations decreases mainly results results rigid portfolio, in in decreased flexible. as meaningful achieve was and most industrial. and and sales metal impacted packaging at industrial retail, by all consumer, and continue billion. the the our inflationary in were businesses decrease driven lower North customers strong $X.X and to America. to Consolidated packaging to due A metal sales meaningfully consolidated in primarily businesses as results, index-based below and in

million. profit decreased EBITDA million, adjusted and Adjusted to operating $XXX $XXX decreased to

maintained well to as Importantly, impacted and earnings share as transformation adjusted with associated margin continued excellence, to through program. XX% above commercial long-term $X.XX. due higher EBITDA Adjusted operational per we factors business on $X.XX debt. EPS an controls floating decreased rates our rate Non-operating on negative cost focus interest

was the Volume/mix most quarter. $XXX or drivers and growth X.X%. revenue anticipated provides the in in volume primary was The digits in bridge, low-to-mid-single slide negative sales for seven, negative decrease This was businesses. million on the

a have metal make and with sales, lower mitigate of the than this this cost them operational North for the customers with exceptions have in We bridge. notable and impact and anticipated handful packaging, on The in on uncertainty, and fixed dialogue and volumes active America. actions the accounted to Acquisitions/divestitures meaningful volume minor were customers, negative continue businesses. a to results. more a structures consolidated most demand had low to to these in disrupted had demand also volume been Two impact sensitive industrial able businesses were in of cost on in

volume/mix divestitures, $XX price was million. X.X%; negative negative was and acquisitions Excluding

excellence by million positive in impact discussed strategic year-over-year pricing contracts was reflect quarter. of in [down managing detail. packaging the associated $XX and businesses consumer, by and at in profit strategy, the manage (ph) index-based pricing value] the customers price our industrial. was impacted to achieved Volume/mix decreases and and continues performance metal the globally with recover This pricing Most price our previously change efforts and the greater inflationary inflation. in Our to paper retail. negative operating bridge performance commercial were operations destocking meaningful offset marginally businesses adjusted illustrates The as

Price/cost and offset included $XX was the purchasing million as $XX [FX] of overlap. of Other positive depreciation $X operating quarter. million strategic higher quarter predicted impact the the in pricing (ph) million price positive profit metal in improved and and

price record million. Slide in mix. performance Metal low sales paper price an sales negative sales a segment decreased strong rigid and million single profit, decreased decreased paper Packaging Consumer mid-single volume was of Consumer eight lower grew digits tinplate-based and customers due and food both decreased management-driven to inventory of price/cost. handful due to Consumer operating operating due at in has our negative the container Sales resilient to overview grew decreases containers profit Flexible profit for rigid digits, profit Flexibles price/cost than XX.X%. had primarily aerosol. and volume and grew quarter. margin XX%. to $XX more operating generally to operating and pass-throughs $XXX volume million. Consumer to $XX

of in offset containers The price/cost strong price impact rigid was paper metal and by overlap. flexibles the

our in profit from XX%. grown would Metal the XX%, Packaging performing a when environment, Excluding competitive continue business results we've well plan position operating higher-return disrupted improved projects, synergy purchased the we operating the improved and we segment price over overlap. to as the Consumer has business we would in been demand and and margins metal We're the of year profit for adjusted believe have have ahead Metal projects. is on invest Packaging, of

America in volumes of negative demand XX% key achieved was all million Operating only productivity record create. decreased the to Industrial, in the The geographies. this continue offset Notably, million, due from Europe, Industrial and XXXX. to and and excellence price deleveraging. regions price to $X $XXX profit lower first was activities less value in cost Industrial million positive the $XX our all Turning as price million segment North Industrial volumes were commercial decreased to lower align than as to This products $XX though with decrease sales quarter of results positive acute decreased cost markets was impacted. most by

XX%, from XX.X%, Other to profit Operating previous million, flat, All cyclical increased improvement were $XX at meaningful lows. profit a to increased $XXX and operating margin sales million.

business is value shareholders. for our capital creation our framework slide to Moving with allocation nine, drive to our aligned strategy

Our at past than present which priority high-return our in improve businesses per and growth dividend, investments on $X.XX capital X% drive is the to the on efficiency. to allocate or We is yield a core greater over months. XX increasing to basis share remain focused quarterly average

million in $XXX our investments $X accretive cash liquidity liquidity. in the capital with strategic million aligned our billion and strategy (ph) $XX second M&A we maintaining ended quarter, investments In expenditures. with the total strong priority After second balanced the We flow long-term the quarter capital. of and against invested we generated [accelerate] dividend, over in prioritize capital and operating

slide we update. our have XX, On guidance

is QX EPS Our $X.XX guidance $X.XX. to

EPS to guidance $X.XX We $X.XX. are revising to our full-year XXXX

We our guidance are XXXX $X.XX EBITDA billion. revising also $X.XX to billion adjusted full-year to

affirming are our $XXX and in the not paper WestRock mill guidance and We cash $XXX this to million this XXXX our flow acquisition RTS full-year We is to operating anticipate closing million. forecast. year,

XXXX discuss will outlook. Rodger Now, the

Rodger Fuller

Thanks, Rob.

new XXXX, for If performance are existing new third of performance you we containers as initiatives the and continued growth third and rigid first, quarter paper our with sustainability-driven strong consumer for from in XX our segment drivers opportunities. global the quarter, and pipeline our please turn for the expect segment view driving to on slide both products

on this positive proprietary using European are in a launching and summer And Sonoco's markets note, customers our products all select unique European paper technology.

our to are containers In advantage Poland paper Malaysia, expanding and rigid for fact, use products in technology. capacity of globalization we that Brazil,

performance business. continued packaging strong our We expect also in flexible

referenced. existing sequential the are into the from reduced are and original The job volumes sequentially a metal lines second-half food as season both quarter destocking Howard flexible's Even aerosol can volumes drivers team inventory new anticipate metal the overlap. And, that next expectations Rob sustain productivity and We phenomenal and due already of quarter. improve impact we with the lower performance enter volumes, will for this pack These for profitability improving in and impressive. to is very our higher numbers metal third have doing the will with below business price expanding just customers.

soft plastic quarter. challenge Lastly, where second was a in seasonally we rigid volumes expect the in also foods volume our business

the year we industrial soft from the to the decline in second paper products. both second-half and through the segment, of to and volumes quarter, our remain Turning converted relatively sequentially expect

demand All markets across geographies are from our and flexibles. cores persistent for industrial core weakness suffering paper,

these siding relatively end for and the Our market was goods customer a up for mill as destocking demand versus soft demand customers in XXXX. factors declines. Protective X% packaging are light consumer

also deleveraging. With protective productivity remained improvements the We this into from expanding volumes, packaging paper European lower market. based are challenging

minimize as volumes. variable aggressively measure expenses the from accounting continue a lower manage to We to the impacts

collection this ThermoSafe across other business positive all demand shippers of In we net continue in to have on products our impacts with businesses, business. some stable seasonal

managing as businesses are and We invest with we all as to costs capital efficiently declining, from impact other in And will quarter. in price these as remained productivity all third stable we resin other can. so, finally, resin continue as and return discussed the businesses we before, businesses run high have to minimal prices

We next expect into quarter of and beyond. see the improvements also to the benefits these

we evidenced for Thanks as will overall, In by through quarter, greater segment, segment see in seasonal tough are as industrial to our benefits in third margin So, a well. team QX. their continue in all our performance the perform demand other the improvement. expected we managing suffering environment. the times sales is to diligence And our industrial consumer really volumes in to when in segment these return in industrial we had challenging

With that, back Howard, you. I to give

Howard Coker

cover for for Rodger that and Rob results. thanks the and update, Thanks

an on Before going I update at provide [indiscernible]. the of Sonoco quarter to questions, want elements and to just

reshaping questions just I to I'll on is continue to you, quarter. relative it we First, active. tell the are following receive where

non-core acquisitions for accretive We years. next few over the divestitures managing of funnel are a and plans

our As deal for of not or value is you now. based selling timing know, any the great And for shareholders. assets be the buying best on environment or future right will businesses

choppy our waters we model On in now. operating operating prove side, I right results are think the EBITDA well

capabilities, durable to and processes discipline challenges. And in have cost have align and market. and we We to plans, the this operate to manage opportunities

management. expectations our expense for and market we Given have our demand, amplified ongoing discipline

last we're solid cash highlighted, to business, the and our on shareholders. our to generate Rob We quarter, for best our the in and balance strong. generate will investment-grade we dividend is remain focused As returns sheet ways raised continuing

operating the us a future evolve initiatives have to wherever, with COVID customers be sustainability the or navigate whenever, Sonoco serve And taken adapt aligned need finally, we remain now, they through our we of and core commitments we have and continue will have is ESG wholly to values to them to be. to know four better stronger build the challenges. however other and resulted handle and three Actions are this, hallmark I'll company. and our will of we just years over unwavering, And help as uncertainty. of And to a Sonoco in model number to of in there to the past a close the future. times and a they

And with at be happy may questions that, we'll and time, have. any to this entertain you

Operator

[Operator Instructions] first question Robert with Our Ghansham line the comes Baird. of from Panjabi W.

Ghansham Panjabi

matches There's XX% lot to or EBIT from for margins comparisons with margins a COVID. XXXX. which obviously Consumer on Hey, now guys, segment around the going in good you're impact back segment, the basically morning. But

margins a right baseline the Just go-forward curious, Howard this and Roger, for basis? is on

Howard Coker

Ghansham? Consumer side, On the

Ghansham Panjabi

exactly. Yes,

Howard Coker

No.

you back had if really we've those to the second brought first issues that publicized look impact, through with the what at the quarter, you year-to-date, and absorb, really two to months if down. of go we think metal and I

we of actually, expect of events. So, well these north basis out -- XX% to on of go-forward clear one-off-type a be we some the once XX% the north

Ghansham Panjabi

in the margin versus that bit think Okay. relates reconcile just that major in And margins that which higher then line weaker, XX% threshold? in of Industrial thoughts historical trying side, to your the the relative Obviously, your you're base to operating end are volumes I'm segment, a are the as that. in the to a you segment. and it just quite decline playing markets role on mentioned that's and sustainability I delivering

Howard Coker

I'll global to put of we business a not last pursued opportunities not too is, productivity years, associated towards performance volumes look, three will with is and the back Project projects you the Industrial of to talk surface, the with Horizon last we've What that of Yes, and about improving the take have one of have are, period we I all say, won't of they advantage that our I time, Ghansham, lot go four a can And but year, Horizon. able the or far, talk this the over but really capital the on or about say six where really investment. through basis. on been five

market a times ourselves back where industry, also even the where small outlook similar [self-helped -- market for 'XX at machine rest corrugated time, the we think period, tied on longer us have or a capacity. to it hand, and to But other you are took all the non-integrated, the we and we out of of the which way the of via previous had type 'XX time our the (ph) saw very medium the scope about of really XX% slowdowns COVID, paper that no that buying] American absolutely North is we no absolutely volume or

business. of to reference number that as our the So, that durability improve Industrial overall projects only I'm to undertaken a we've using the of

Ghansham Panjabi

Perfect, thank you.

Operator

comes Hadje Wells Gabe question Fargo. from next Our with the of line

Gabe Hadje

picked don't this something in here imports One the about publications morning. or maybe for good not the something was topic URB recall that. about, question. Yes, we've talking like up week really something past in read we in the or trade last the years as XX U.S. into so, I a Thanks

that in experiencing based a then patterns So, demand ability for system expect anything just own whatever more if you maybe moving around of something And producers that curious of view perhaps are on curious, persist their or you do of Howard, and markets, maybe your you're reason? function OCC? local just just this to cost local maybe

Rodger Fuller

the into and up the It during transportation, have did as containers the Imports in coming there imports I but picked it high know been is returned this it the nothing many of have COVID picked of U.S. really Gabe, stop publication, reasonable in has back Roger. a of was to because of cost new. logistics Hi, years. more for URB now and level. cost up is

do as they new. we now, from on or that's board it East in when region region, But volumes represent that years. like for we so seeing that. board every Asia really Italy dealt on is to And Coast from from move need with -- system, because our region to are are far we So, don't places don't simply as like soft, Coast, unusual, and not many coming West the we've the from

Gabe Hadje

the I And we'd Can what maybe softer 'XX, Okay. guess some Or higher drive that that right to choppy if here, patterns about some demand-dependent on just are talk order demand. things an of expect we you is side, outside anything cost talk on you productivity could commercial now? maybe to active and question variabilize into you going guys these margins or as the a the your about do annual how that late, getting ability a structure? extent have to you than of of there's fairly pattern maybe soft been your see basis,

Howard Coker

profiles the the we pick back times me in just -- uncertain now. for see at as viewpoint will now feel guess [I positive right see we necessary it And cause] volumes we're position start across match looking and along, about on encouragement actions fixed going have last better on I that's The certainly today periods, operations, now, we demand said to well. the that the say profile, all right as well, positive up, that the current in -- demand margin recover. are a are beyond and handle that to to leverage along rightsizing we're what's makes as hopefully taking as right Yes, ability obviously the really is do all very several (ph) I and we've side to the

Gabe Hadje

luck. thank you. Good Okay,

Operator

Partners. Weintraub of the next comes from Our with Mark Research question Seaport line

Mark Weintraub

you. Thank

metal in price us, you guidance, has it the First, how much that $XX million changed? the is update overlap, your still just or is in could

Rob Dillard

Hey, is Mark, this Rob.

quarter, the price negative overlap metal million. $XX For was

QX, And completed million. you was so, at plus incurred That's year-over-year $XX this in the totally that remember, largely year includes the And we for that this what not if point. impact. as completed, year,

will price $XXX full-year the million. So, be metal overlap

Mark Weintraub

Okay.

million. so, by $XX And on your you've cut EBITDA guidance

So, walk could reflected? biggest you through of would the components have what reduction that

Rob Dillard

was X% EBITDA it guide. so XX% in to decrease Yes, about the

negative is about some then negative XX% metal which by performance expecting which largely be segment, business, we're XX%, and due by the discussed, driven you We're through now. price down the store overlap, has If relatively and just right which meaningfully that down. between consumer to we plastic in think been to or foods, working going also

flat, going is relatively price be with kind XX%. mix positive of up other. XX% Other to be Industrial and actually to costs year-over-year will some offsetting volume each

that the for the should you impact And bridge so total to year.

Mark Weintraub

Okay. to delta And where in clarify, versus expectations, just prior the concentrated? terms that your of was

Howard Coker

It's really industrial. an

I for seeing the up second-half. this the in year, have, originally that and industrial haven't long. have this view they negatively people that when we environment the the think thought really low what only moderation for And is seen really customers we'd some our see we with that the would first-half it this for low-volume set we're

kind in utilization at industry XXXX of terms and levels kind of of are We an volumes perspective from perspective. an

won't been And to has that it current expectation is that XXXX. it than so, our sooner later. recover And there view has in this recover

Mark Weintraub

even inflated during to because this how a a a of sense volumes trend as striking, year. last fallen the having destock versus line is And or really function are second-half the may of pandemic bit much of be? you would have been of it a in where and better getting the it been sort Right, quite had the

Howard Coker

COVID complete there some just We at slip that this with and of inflated No, there modest really industry actually, that don't that think destocking a down. volume was think disruption we associated inventories. during all was is

Mark Weintraub

super. Okay,

can I one, just quick of anticipated Just the any to terms the You did in last you it believe say update? that how RTS if on us you second close there's I color that's end request. progressing? of by one could year. Any give

Howard Coker

Howard. is this Mark Yes,

fourth close We quarter, third late expect quarter. early to

Mark Weintraub

you. thank Okay,

Operator

question Citi. from Our line comes next of Pettinari Anthony the with

Unidentified Analyst

on is Greg is for My This pack Anthony. morning. the question season. on first Good

this inclement weather, year. others we've maybe harvest a So kind from comments lackluster around some of season heard impacting

to I'm characterize and totally season this then acknowledging harvest heading to from expectations adverse control? you your in your year's into degree quantify So guidance? the and your of perspective, impact harvest pack canvas how the the quarter or harvests what it would full-year of on your harvest Is in wondering, poor and is prior years factored relative weather relative a and is possible Ag second to food to out

Howard Coker

a deeper Yes, side it's the And were season particular if of it, into And down what seeing data what I into would actually they data. the to and dig side you things as to as third in volumes take public what expect up that discrete and you represented well. pretty then normalizing similar should couple our from say if starting one but that really a you we're we to those CMI out, aerosol flat to can quarter. is when into pack enter you seeing on The are the are pick perspective, got up. from we're metal customers on food now start really

couple of side, also the seeing a choices quarter, well. Similarly enter a aerosol return not other conscious are the but that related pack seeing The does volume, quarter, as third that starting make is down. remarkable the of we're same as on in not related, accounts couple improvements over we brought aerosol we volume July us but but there price to to

the pleased that broadly business, speaking market frankly, synergies the Rob and we're and reception -- we've So, integration, this, of the extremely obtained with talked performance the to the received.

are telling this we at time. making turn at a positive quarter July as this point one phenomenon see And all. as feel concern we not customers us in this second being are and are like we that in any starting So our of to view we

So hope that helps, Greg?

Unidentified Analyst

I very I my question appreciate the price, question, just color. is Yes, and Coker. around that's Mr. second you, Thank And Sonoco across entire portfolio. helpful. guess last the

marketplace, customer when that if could translate a into And into then for in what segue Destocking, today's does on now wondering historically volume few volumes pushback you're weaker how you be seen and seeing we've quarters. that pricing? So helpful. would really weakness I'm

Howard Coker

opposite adverse industrial Yes, historically happening let at the which side head pick what the side starting me beginning say an and hearing, the up. we it's businesses scratcher or consumer us. if this have right seen what as slow, we're that see start that industrial we're about that of the always at data certainly is the And unique for but feeling. are really in of that big looked industrial industrial now business, on where of what to We've is is with, about would situation to a at you data you kind trouble. think And global would supply and talk if supply we that in economies the consumer the what a alone, is bit our you're chains. we're pretty we looking not But industrial

a are in question they So down on textiles, acknowledged basis mark for recession. what in films, global to is think from markets is be where as major on understandably a here our they perspective going Europe

in We understand starting relates it, your saying to Greg in price see many at but consumer taking more are customers And but we cracks look, on we seeing and the that think point have promotion this we hey, to volume question, seeing not customers I to we're far side. over are we're up that activity. is seen that, how time, pick thus

be. head I put would aren't this right to where that we forward the again side. But like times side industrial going on extremely Our consumer well, that though allows in telling ourselves will them say real some now. position see like the The to the customers perform are that should scratcher us we improvements even us volumes is the we

Rodger Fuller

have margin to Yes, a due Rodger. in it industrial I increases into this costs. and well average up, the deserved call just we our compression quarters, on ton, wage primarily team. $XX higher is let's fourth some for third and $X in add, would built to OCC

so not from but the continued some So in system. inflation much price,

second-half year. So some get compression the into build again, as we in margin the we of did

Unidentified Analyst

Appreciate sense. the color. makes That

Operator

Our next UBS. the Rueckert of question line with comes from Cleve

Cleveland Rueckert

conditions Well, I Thanks it But second-half and good quarter? improvement didn't some sort there. really on couple did guidance just just mean built of second taking in come questions had morning. follow-up in market I'm visibility questions. the curious one the of weaken plan second-half? our understand, how for in through? lost firstly, market the And of maybe in a had I like in sounds the some that or those lack materialize. into it didn't you the second to industrial just conditions the now that was orders quarter, develop did

Rodger Fuller

happen. this industrial, volumes in in exited customers we hearing What the so now is not us we believe quarter, In in that's second-half Yes, yes, simply we to lead expected improvement first from the the our some were industrial Rodger. of as year. going we're to

So down as is the volumes. at second quarter you look sequentially, quarter third going to be X% versus our

and the quarter. fourth weak, into then pretty weakness that's So, continued

some out now and inventory of itself in expecting see year. had of seeing were the not again the our in system, guidance. the pickup frankly that So, we'd worked of but some the second-half we We're

previous was the biggest today. think are that where our I guidance from volume we change to

Cleveland Rueckert

Okay.

market sort conditions? necessarily of weakening of it's a lack of improvement, a not So

Rodger Fuller

Europe seasonally third the slower Well, quarter. Correct. than always is

So versus about total seasonally X% second the industrial again, down quarter.

Cleveland Rueckert

business, looks that take It conditions Yes, and coming are and you to in around there then times what the And the could or improve? orders that be but kind kind I'm kind in if the low do is QX you the of the turn that just business? how of EPS. wondering, you so visibility think conservative, do like It your on guidance, get just I midpoints; they'll like do that's lead there you're have quickly industrial curious, potential of And year is if the for, just just in I'm sounds end outperform now? into looking XXXX? point of the market

Rodger Fuller

the we of large information Yes, is right business. our forecast don't Cleve, our have. the say on what now, I'd nature we're basing just backlogs, normally carry But best that we

trend of than guys economic North the that And right we're I across now, best being situation at can most a fully is what the look positive American more One that hearing. thought, sustainable. people on

think that that. business consumer of should is which terms tip benefit would in, manufacturing, the of that You point, we arrow the products, from that the we're certainly industrial and in really the both

we crystal So ball of that have don't in us. front

customers time. Our what this only they can point tell know at us in

to that yes, of of the we sure we're out Could demand profile so. through the I year. drag the continuing that so, end type hope current And seeing change? are

Cleveland Rueckert

Yes, that's taking for I'll Thanks it. turn guys. clear. Appreciate over. the pretty it questions

Operator

with next Staphos [Operator Instructions] Our from question of America. Bank George comes

George Staphos

me How you are morning. you? for Hi, everyone. Good hear okay? Thanks details. the Can

Rodger Fuller

George. Yes,

George Staphos

I first we question covered this questions. guess look other think August, Rodger, at Is the XQ some you happy the sequential and versus in already downtick I So, the I XQ of it seeing earnings and the XQ if you're to industrial? frame the roughly us say you it between from downtick number inflation would Would how XQ would the that you for in be XX:XX or guide? volume the had,

Rodger Fuller

George. close, That's

probably think very I close. that's

George Staphos

now for thanks that. Okay,

Now, and is seeing is industrial. see their some sequential yet but That's have we year-on-year, tubes what still cores what's and XQ improved some relaying for to Still products other pretty started trends weak. interesting you're down buy the companies cover improvement. versus that that of winding that here XQ

interpretation reconcile we and sequentially versus that? markets of particularly XQ? should missing XQ which look terms What in that weak So end are how we

Rodger Fuller

this George, Yes, weakest. right, it's the and film Yes, industrial. really Textiles for Rodger. is are

we're writing. it I they're inventory inventory hearing corrugated forward, seeing customers primarily in the working recovery. have And look textiles in paper so goes little we printing from globally, their film, not recovery really side much more think and the on some in on and through seen to the the system side, what system. But As we have back the they and

going we but said, by ball crystal us. Howard is correct, totally they we're what their not tell As hope

George Staphos

Okay, XXXX. have one next I will say. over. or there And should We color volume impact you and question what to the we'll can be turn In appreciate Rodger. it then that metal, versus give good. Last, believe other we'll us EBIT year-on-year EBITDA you

million We XQ 'XX called for the for 'XX? the as middle overlap between a is impact year-on-year versus middle it, EBITD have and consumer over and you What volume $XXX from XQ.

Howard Coker

productivity associated this volume be Hey, It that's it. and million year. And with George. million will $XX the between and $XX

George Staphos

my losing volumes to basis gives you comfort are of metal Okay. and you year But, then, you sort was when coming of be are give relative you this, this us you in and last what differently should versus net -- you back is exactly at the not on comfort question a mapped And haven't So, volume you and year-to-date what's share? CMI, end look key market same. your gives year? could I impact out last perhaps so by that that your what sit what

I'll guys, turn you, over. Thank and it

Howard Coker

volumes. me, about of aerosols XX%, down making. decisions to more quarter, stories front other Yes, phenomenon that am it second price in entered dig carrier, to I quarter that have volume as normalized their myself segments of and repeating was that, XX%, And, again, that that when behind, versus both that see related business. Well, one more around pulling relates George. a Foods one the of customers you the the third I out but we are into again, we the customers that of in couple inventory really being

any has that not market your been terms question been share and at last of positive about in this Sonoco am aware have as we all. Certainly I material extremely in the has business since year. lost And nothing reception share,

for we And, ourselves that know that what are thus you out pulling a quarter, telling are to that, the we be received just customers again far. reception as So, going excited one-off us say, exactly are we market about and if will the case that's is. the that

George Staphos

you. and in get I'll it Thank now back probably over turn queue.

Howard Coker

thanks. Right,

Operator

like Lisa remarks. Weeks question-and-answer to to for would That the concludes closing call back session. turn today's I

Lisa Weeks

will can with to for we you We later. third late And you and follow-up look the in or the until questions, quarter summer to scheduled everyone, after November. Thank a share call, joining forward we results the seeing any early around call us to fall we on Thank great you have follow-up if have today. and road you day.

Operator

This Thank participating. for you concludes today's call. conference

You disconnect. may now

Sonoco Products (SON) 1 Aug 232023 Q2 Earnings call transcript