8-K Segment Change - Alloyd


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported): March 31, 2014
 
SONOCO PRODUCTS COMPANY
 
Commission File No. 001-11261
 
 
 
 
Incorporated under the laws
 
I.R.S. Employer Identification
of South Carolina
 
No. 57-0248420
1 N. Second St.
Hartsville, South Carolina 29550
Telephone: 843/383-7000
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ]
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ]
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


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Section 8 - Other Events
Item 8.01    Other Events.

Effective January 1, 2014, Sonoco Alloyd, the Company's retail security packaging component, became part of the Display and Packaging segment. It had previously been included in the Protective Solutions segment. This change reflects the evolving integration occurring between these businesses, enabling them to better leverage the Company's capabilities, products, and services in order to provide complete solutions to our retail merchandising customers.

To ensure comparability of 2014 quarterly segmental financial results with previous periods, the Company will recast prior year segmental results to conform to the current presentation. The following tables set forth quarterly financial information for 2013 and 2012 for each of the Company's business segments reflecting the move of Sonoco Alloyd from the Protective Solutions segment to the Display and Packaging segment:

Quarterly Reportable Segment Results (Unaudited)
(dollars in thousands)
 
 
 
 
2013
 
 
 
 
First
Quarter
 
Second Quarter
 
Third Quarter
 
Fourth Quarter
 
Year
to
Date
Net sales:
 
 
 
 
 
 
 
 
 
 
Consumer Packaging
 
$
463,300

 
$
475,013

 
$
473,332

 
$
481,888

 
$
1,893,533

Display and Packaging
 
144,575

 
157,516

 
167,960

 
154,957

 
625,008

Paper and Industrial Converted Products
 
454,207

 
473,217

 
467,847

 
463,609

 
1,858,880

Protective Solutions
 
117,131

 
120,510

 
118,610

 
114,420

 
470,671

Consolidated
 
$
1,179,213

 
$
1,226,256

 
$
1,227,749

 
$
1,214,874

 
$
4,848,092

Intersegment sales:
 
 
 
 
 
 
 
 
 
 
Consumer Packaging
 
$
1,359

 
$
1,446

 
$
978

 
$
1,374

 
$
5,157

Display and Packaging
 
655

 
519

 
445

 
349

 
1,968

Paper and Industrial Converted Products
 
23,455

 
25,017

 
26,320

 
25,090

 
99,882

Protective Solutions
 
673

 
727

 
621

 
586

 
2,607

Consolidated
 
$
26,142

 
$
27,709

 
$
28,364

 
$
27,399

 
$
109,614

Income before interest and income taxes:1
 
 
 
 
 
 
 
 
 
 
Segment operating profit:
 
 
 
 
 
 
 
 
 
 
Consumer Packaging
 
$
42,340

 
$
47,366

 
$
49,025

 
$
48,399

 
$
187,130

Display and Packaging
 
3,503

 
6,071

 
7,763

 
3,469

 
20,806

Paper and Industrial Converted Products
 
31,004

 
35,991

 
37,722

 
33,377

 
138,094

Protective Solutions
 
9,724

 
11,376

 
11,029

 
7,955

 
40,084

Restructuring/Asset impairment charges
 
(4,289
)
 
(8,678
)
 
(5,818
)
 
(6,253
)
 
(25,038
)
Other, net
 
(866
)
 
(88
)
 
563

 
610

 
219

Consolidated operating profit
 
$
81,416

 
$
92,038

 
$
100,284

 
$
87,557

 
$
361,295




2


 
 
 
 
2012
 
 
 
 
First
Quarter
 
Second Quarter
 
Third Quarter
 
Fourth Quarter
 
Year
to
Date
Net sales:
 
 
 
 
 
 
 
 
 
 
Consumer Packaging
 
$
495,766

 
$
477,038

 
$
475,946

 
$
463,871

 
$
1,912,621

Display and Packaging
 
142,126

 
135,329

 
150,315

 
153,412

 
581,182

Paper and Industrial Converted Products
 
463,610

 
475,460

 
453,605

 
448,152

 
1,840,827

Protective Solutions
 
110,868

 
114,532

 
115,664

 
110,435

 
451,499

Consolidated
 
$
1,212,370

 
$
1,202,359

 
$
1,195,530

 
$
1,175,870

 
$
4,786,129

Intersegment sales:
 
 
 
 
 
 
 
 
 
 
Consumer Packaging
 
$
1,899

 
$
2,214

 
$
2,096

 
$
1,284

 
$
7,493

Display and Packaging
 
584

 
594

 
516

 
559

 
2,253

Paper and Industrial Converted Products
 
25,734

 
24,919

 
23,126

 
22,917

 
96,696

Protective Solutions
 
680

 
328

 
457

 
662

 
2,127

Consolidated
 
$
28,897

 
$
28,055

 
$
26,195

 
$
25,422

 
$
108,569

Income before interest and income taxes:1
 
 
 
 
 
 
 
 
 
 
Segment operating profit:
 
 
 
 
 
 
 
 
 
 
Consumer Packaging
 
$
50,080

 
$
42,752

 
$
43,829

 
$
40,107

 
$
176,768

Display and Packaging
 
5,235

 
5,174

 
5,782

 
4,206

 
20,397

Paper and Industrial Converted Products
 
32,304

 
39,652

 
33,150

 
36,245

 
141,351

Protective Solutions
 
6,612

 
10,508

 
9,961

 
9,831

 
36,912

Restructuring/Asset impairment charges
 
(15,212
)
 
(9,396
)
 
444

 
(8,694
)
 
(32,858
)
Other, net
 
(176
)
 
(98
)
 
3,177

 
1,586

 
4,489

Consolidated operating profit
 
$
78,843

 
$
88,592

 
$
96,343

 
$
83,281

 
$
347,059



1 Segment results viewed by Company management to evaluate segment performance do not include restructuring charges, asset impairment charges, acquisition-related charges, interest expense, income taxes, or certain other items, if any, the exclusion of which the Company believes improves comparability and analysis. Accordingly, segment operating profit, also referred to as consolidated operating profit, is defined as the segment's portion of "Income before interest and income taxes," excluding such items.

See Note 16 to the Company's 2013 Annual Report on Form 10-K for more information on reportable segments.



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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
 
 
 
 
 
 
 
 
 
SONOCO PRODUCTS COMPANY
 
 
 
 
Date: March 31, 2014
 
 
 
By:
 
/s/ Barry L. Saunders
 
 
 
 
Barry L. Saunders
 
 
 
 
Vice President and Chief Financial Officer


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