Sonoco Short on Revenue

Shares fall.
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Sonoco Products

(SON) - Get Report

fell 8% Wednesday after the packaging company missed revenue targets.

The company earned $45.1 million, or 44 cents a share, compared with $36.9 million, or 37 cents a share, a year ago. Adjusted for restructuring charges of $1.4 million in the most recent quarter and $3.1 million last year, the company's earnings rose to 46 cents a share from 40 cents a share last year. Analysts surveyed by Thomson First Call were expecting earnings of 45 cents a share.

First-quarter revenue rose by 0.5% from a year ago to $818.8 million as against the analysts' expectations of $859.5 million.

The company said that the first-quarter earnings included a favorable adjustment to state taxes of about 3 cents a share and a stock options charge of about $1.1 million.

Also, Sonoco said its consumer packaging segment reported about 8% increase in sales along with strong volume and high prices in its protective packaging and wires segment. But this impressive growth was offset by lower volumes from North American and European tubes and cores thereby limiting the overall sales growth to 0.5%.

The company also boosted its quarterly dividend by a penny to 24 cents.

Sonoco fell $2.72 to $31.66.

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