Second-quarter 2020 GAAP earnings per diluted share were $0.55, compared with $0.80 in 2019. Second-quarter 2020 net sales were $1.25 billion, compared with $1.36 billion in 2019.
Commenting on Q2 performance, Howard Coker, president/CEO, says, "Our Sonoco team did a tremendous job during the quarter to produce bottom-line results which were in line with our expectations despite facing the toughest operating environment since the Great Recession. Results from our diverse portfolio of Consumer- and Industrial-related businesses mirrored the current divergent macroeconomic environment.
"Our Consumer Packaging segment produced record results during the quarter due to strong demand for food packaging driven by consumers' stay-at-home eating habits, while our Paper and Industrial Converted and Protective Solutions segments were dragged down by extremely weak demand in most of our industrial served markets due to virus-related shutdowns. Overall, the Company's bottom line results benefited from strong productivity, targeted cost savings and earnings from recent acquisitions.
"However, these positive factors were more than offset by negative volume/mix, a significant negative price/cost relationship due to rising recovered paper costs that primarily impacted our Paper and Industrial Converted Product segment along with the negative impact of foreign exchange translation, increased interest expense and a higher effective tax rate.
"We're also very pleased with our strong cash flow generation during the quarter which shows the resiliency of our business and the focus of our team on this very important activity. Sonoco's liquidity position is stronger than ever and we will keep this, along with our investment-grade credit rating, as a top priority."
Sonoco has been designated an essential provider of consumer, industrial and medical packaging around the world. As a result, virtually all of the company’s global operations are currently operating and serving our customers’ critical needs.
Demand, in certain of the company's markets, has been negatively impacted by COVID-19 related shutdowns and the company took steps to right-size its operations to better match the demand environment, implementing a combination of furloughs, designed to allow the company to ramp up production when market conditions improve, along with permanent workforce reductions.
As areas around the world continue to reopen their economies, the company is beginning to see improved demand for more of its products and services. Sonoco is closely monitoring the impact of the virus and working with our customers to meet their changing needs and will continue managing active production capacity and overhead costs, as necessary.