Sonoco 3Q Profit Falls, Lifts 2009 Profit Outlook

HARTSVILLE, S.C. (AP) — Sonoco Products Co. said Thursday that its third-quarter profit slipped 17 percent, hindered by lower volumes amid the recession and increased pension expense.

The packaging company earned $47.7 million, or 47 cents per share, compared with $57.4 million, or 57 cents per share, during the same quarter a year ago.

Excluding an 8 cents per share increase in pension expense and other items, profit was 50 cents per share.

Sonoco previously predicted quarterly earnings in a range of 42 cents to 47 cents per share.

The company's performance bested the 46 cents-per-share estimate of analysts surveyed by Thomson Reuters. Those estimates normally exclude one-time items.

Sales for the three months ended Sept. 27 dropped 12 percent to $930.6 million from $1.06 billion to miss Wall Street's estimate of $948.3 million.

Chairman, President and CEO Harris E. DeLoach Jr. said in a statement that the recession has hurt Sonoco's packaging services unit as well as businesses that cater to industrial markets. Packaging services revenue fell to $117 million from $135 million in the quarter.