08.21.15
Sonoco 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.
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 Dec. 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 Dec. 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.
Second quarter 2015 GAAP earnings per diluted share were $.63, compared with $.57 per diluted share in the same period of 2014, as restated. 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.
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 Dec. 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 Dec. 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.
Second quarter 2015 GAAP earnings per diluted share were $.63, compared with $.57 per diluted share in the same period of 2014, as restated. 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.