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Sonoco Products Co. Q4 2007 Earnings Call Transcript

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2008-02-06 15:07:08.0

Tags: Sonoco Products Co.

Question-and-Answer Session

Thank you. Ladies and gentlemen, we will now be conducting a question and answer session. [Operator Instructions] Our first question comes from Ghansham Panjabi of Wachovia Securities. Please proceed with your question.

Ghansham Panjabi - Wachovia Capital Markets

Hey guys, good afternoon.

Harris E. DeLoach, Jr. - Chairman, President, and Chief Executive Officer

Hello Ghansham, how are you?

Ghansham Panjabi - Wachovia Capital Markets

Good, thanks. Charlie, I know you give us some parameters on this, but could you break down the price volume effects by the different segments please?

Charles J. Hupfer - Senior Vice President and Chief Financial Officer

In terms of sales?

Ghansham Panjabi - Wachovia Capital Markets

Yes, in terms of sales, right.

Charles J. Hupfer - Senior Vice President and Chief Financial Officer

Yes, we are talking about for the quarter? I can generally do that. In terms of volume, the $70.4 million, and I mentioned in total, really almost all of that is coming out of tube, core and paper, and to a lesser degree consumer packaging. So probably a little... almost, well actually a little more than half of that is out of tube, core and paper. Consumer packaging would make up most of the rest of it. We did see a decline in the other category, which is where our Baker Reels business is. So it's really in those two major areas. Embedded in that $70.4 million are Packaging Services, and they did show an increase year-over-year. So three of our four categories or segment showed a decline, which of course you would expect with the 6% difference.

Ghansham Panjabi - Wachovia Capital Markets

Okay. And Harris, how does this current slowdown compare with what you saw back in 2001. Clearly, your company is much better positioned, but in terms of the various operating segments including tubes and cores and consumers, are there any sort of parallels between the two?

Harris E. DeLoach, Jr. - Chairman, President, and Chief Executive Officer

Ghansham, I think it's a little different than what we saw in 2001 in that we are seeing more pressure on the consumer side this time than I think we saw at that time. I would say this is probably more reflective to what we saw in the 1990-1991 timeframe when consumer spending saw a drop off. So the short answer is we are seeing more pressure I think on the consumer side, particularly on snacks and things of that nature.

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