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1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C.
20549
FORM 10-K
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED DECEMBER 31, 1995 COMMISSION FILE NUMBER 1-11261
SONOCO PRODUCTS COMPANY
INCORPORATED UNDER THE LAWS I.R.S. EMPLOYER IDENTIFICATION
OF SOUTH CAROLINA NO. 57-0248420
POST OFFICE BOX 160
HARTSVILLE, SOUTH CAROLINA 29551-0160
TELEPHONE: 803-383-7000
SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:
Title of each class Name of exchange on which registered
- ----------------------------------- ------------------------------------
No par value common stock New York Stock Exchange, Inc.
Series A Cumulative Preferred Stock New York Stock Exchange, Inc.
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
--- ---
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to
this Form 10-K. [ ]
The aggregate market value of voting stock held by nonaffiliates of the
registrant (based on the New York Stock Exchange closing price) on March 3,
1996, was $2,483,756,350. .
As of March 3, 1996, there were 91,147,022 shares of no par value common stock
outstanding.
Documents Incorporated by Reference
Portions of the Annual Report to Shareholders for the fiscal year ended
December 31, 1995, are incorporated by reference in Parts I, II and IV;
portions of the Proxy Statement for the annual meeting of shareholders to
be held on April 17, 1996, are incorporated by reference in Part III.
2
SONOCO PRODUCTS COMPANY AND CONSOLIDATED SUBSIDIARIES
PART I
ITEM I. BUSINESS
- ----------------
The Company
The Company, a South Carolina corporation founded in Hartsville, South
Carolina in 1899, is a major global manufacturer of paperboard-based and
plastic-based packaging products. The Company is also vertically
integrated into paperboard production and recovered paper collection.
The paperboard utilized in the Company's packaging products is produced
substantially from recovered paper. The Company operates an extensive
network of plants in the United States and has subsidiaries in Europe,
North America, South America, Australia and Asia, and affiliates in
Canada, Japan, France and Italy. The Company's business is organized by
global product lines in order to leverage its U.S. customer base, to take
advantage of synergies from its worldwide operations and to serve its
customers worldwide on a timely basis and with consistent quality.
The Company serves a wide variety of industrial and consumer markets.
Industrial markets, which represented approximately 58% of the Company's
sales in 1995, include paper manufacturers, chemical and pharmaceutical
producers, textile manufacturers, automotive manufacturers, the wire and
cable industry and the building and construction industry. Consumer
markets, which represented approximately 42% of the Company's sales in
1995, include food and beverage processors, the personal and health care
industries, supermarkets, retail outlets, household good manufacturers
and consumer electronics. The Company believes that it is a leading
producer in most markets served.
The Company's operations are divided into three segments (two domestic
and one international) for financial reporting purposes. Domestic
segments include Converted Products and Paper. The Financial Reporting
For Business Segments Table as shown in Note 18 of the Company's 1995
Annual Report to Shareholders, which is included as Exhibit 13, presents
selected financial data by major lines of business or segments for each
of the past three fiscal years. This table is hereby incorporated by
reference herein and should be read in conjunction with the Management's
Discussion and Analysis of the 1995 Annual Report to Shareholders, which
is also hereby incorporated by reference herein.
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SONOCO PRODUCTS COMPANY AND CONSOLIDATED SUBSIDIARIES
ITEM I. BUSINESS, CONTINUED
- ----------------
Acquisitions/Dispositions
Acquisitions over the past five years have been an important part of the
Company's strategy for growth. The 1992 acquisition of the Trent Valley
paper mill in Trenton, Ontario, Canada, provided the Company with a new
forming technology that improves the dimensional stability of paperboard,
a critical property in certain market segments. During 1993, the Company
purchased Crellin Holding, Inc., an international manufacturer, designer
and marketer of molded plastic products. The Company also completed the
acquisition of the OPV/Durener Group, Germany's second largest
manufacturer of tubes and cores. In October 1993, the Company acquired
Engraph, Inc., creating the opportunity to grow into new packaging
markets. These markets included pressure-sensitive labels and package
inserts, flexible packaging, screen process printing and paperboard
cartons and specialities. During 1994, the Company acquired M. Harland &
Son Limited, a leading producer of pressure-sensitive roll labels and
roll-label application equipment headquartered in the United Kingdom.
During 1995, the Company completed several acquisitions which were
strategically important both in the U. S. and internationally. In
January, the Company acquired the remaining 50% interest in the
CMB/Sonoco joint venture. CMB/Sonoco is a producer of composite cans
with manufacturing facilities in England and France. In March, the
Company purchased a flexible packaging plant in Edinburgh, Ind., from
Hargro Flexible Packaging Corporation. The Edinburgh plant, which
further enhances the Company's flexible packaging business, manufactures
packaging for the confection, snack food and pharmaceutical markets. In
October, the Company completed the acquisition of the assets of Cricket
Converters, Inc., of Hightstown, N.J., a major manufacturer of high-
quality, pressure-sensitive labels for the pharmaceutical and health
care markets. In November, the Company formed a joint venture to produce
paperboard in Shanghai, China, and in December acquired a minority
interest in Demolli Industria Cartaria SRL, a manufacturer of tubes and
cores in Italy. Also during 1995, the Company purchased three converting
operations and a paper mill in Brazil, a small tube and paper manufacturer
in France and three recovered paper collection plants in the United
States.
Competition
The Company believes it has several competitive advantages in the
industrial and consumer markets it serves. First, the Company
manufactures and sells many of its products globally. As a result, the
Company believes it has the capability to respond effectively to
customers seeking national or international supply agreements. Secondly,
the Company believes its technological leadership, reputation for
quality and vertical integration has enabled the Company to coordinate
its product development and global expansion with the rapidly changing
needs of its major customers, who demand high-quality, state-of-the-art,
environmentally compatible packaging. Thirdly, the Company and its
customers have
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SONOCO PRODUCTS COMPANY AND CONSOLIDATED SUBSIDIARIES
ITEM I. BUSINESS, CONTINUED
- ----------------
Competition, Continued
developed international standards to reduce costs and increase quality.
Finally, the Company believes that its strategy of vertical integration,
via its unique interrelationship between its industrial products and
papermaking operations, increases its control over the availability and
quality of raw materials used in its products. The Company believes
investments made in the fast growing flexible packaging and
pressure-sensitive label businesses have enhanced its competitive position
with new products in existing markets while providing new market
opportunities.
Converted Products Segment - The Company is a U.S. market leader in nearly
all of its primary businesses, including the manufacture of high-value
tubes, cores and cones; composite cans; fibre and plastic drums; nailed
wood and metal reels and pressure-sensitive labels. The Company is the
second U.S. leading producer of fibre partitions. The Company is the
leading U.S. producer of high-density, high-molecular weight, plastic
carry-out grocery bags. The Company also produces plastic bags for the
high-volume retail market and the convenience store market, and film for
the agricultural market. In 1995, the Company completed a $25-million
expansion project, expanding capacity by about two billion bags annually,
to accommodate additional business resulting from the exit of a competitor
during 1994.
Paper Segment - The domestic Paper Division, with 12 plants and 22
machines, is one of the world's leading producers of recycled paperboard,
most of which is consumed internally. The Company has a strong degree of
vertical integration with the paper-converting business. This tactic,
combined with advancing technology and a strong recovered paper operation,
helps to keep the Company a competitive producer.
International - Having operated internationally for more than 70 years,
the International segment has been important in the Company's ability to
serve and retain many of its customers that have international packaging
requirements. The Company considers its ability to serve its customers
worldwide in a timely, consistent and cost-effective manner a competitive
advantage.
The Company's products are sold in highly competitive market
environments. Within each of these markets, supply and demand are the
major factors controlling the market environment. Additionally, and to a
lesser degree, these markets are influenced by the overall rate of
economic activity. Throughout the year, the Company remained highly
competitive within each of the markets served. None of the Company's
segments is seasonal to any significant degree. The Management's
Discussion and Analysis of the 1995 Annual Report to Shareholders
discusses the various segments of the Company and is hereby incorporated
by reference herein.
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SONOCO PRODUCTS COMPANY AND CONSOLIDATED SUBSIDIARIES
ITEM I. BUSINESS, CONTINUED
- ----------------
Raw Materials
The principal raw materials used by the Company are plastic resins,
metal, pulpwood, recovered paper and paper. With the exception of
pulpwood, recovered paper and paper, the Company's raw materials and
supplies are purchased from a number of outside sources; however, the
supply is considered adequate to meet the Company's requirements.
Company-owned timberlands, timber-cutting rights and suppliers are
believed to be sufficient to assure the future availability of pulpwood.
Recovered paper used in the manufacture of paperboard is purchased either
directly from suppliers near manufacturing operations or through the
Company's subsidiary, Paper Stock Dealers, Inc.
Although the Company considers the supply of raw materials to be adequate
to meet its needs, the majority of raw materials are subject to price
volatility as experienced in 1995 and 1994. In the early part of the
year, costs for primary raw materials, such as recovered paper, plastic
resins, aluminum and steel, were extremely high, resulting in selling
price increases, where possible. Later in the year, there were selected
selling price decreases to reflect the falling costs of some raw
materials. On balance, the Company was able to recover the cost increases
in 1995. Although cost pressures on raw materials are expected to be a
continuing factor, the Company expects to mitigate any adverse earnings
impact over time through selling price increases. The Company has also
been strengthening its fibre recovery system over the past two years.
Three paper collection operations were acquired during the year to expand
the Company's collection base. In addition, the Company continues to work
on such arrangements as joint ventures and partnership agreements to
strengthen its supply stability.
Backlog
Most customer orders are manufactured with a lead time not to exceed three
weeks. Domestic long-term contracts, primarily for composite cans, exist
for approximately 18% of trade sales (no one contract exceeds 3%). These
contracts, which are for a specific duration, generally include price
escalation provisions for raw materials, labor and overhead costs. There
are no significant long-term purchase contracts because the Company
considers the supply of raw materials adequate to meet its needs.
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SONOCO PRODUCTS COMPANY AND CONSOLIDATED SUBSIDIARIES
ITEM I. BUSINESS, CONTINUED
- ----------------
Patents, Trademarks and Related Contracts
No segment of the business is materially dependent upon the existence of
patents, trademarks or related contracts.
Research and Development
The Company has 113 employees engaged in new product development and
technical support for existing product lines. Company-sponsored spending
in this area was $12.7 million, $12.1 million and $12.9 million in 1995,
1994, and 1993, respectively. Spending focused on projects related to
Sonoco's primary businesses and reflects a commitment to ensure that the
Company is the technology leader in markets served. Customer-sponsored
spending has been immaterial for the past three years.
Environmental Protection
The Financial Position, Liquidity and Capital Resources section of the
Management's Discussion and Analysis in the 1995 Annual Report to
Shareholders provides the required information and is hereby incorporated
by reference herein.
Employees
The number of employees at December 31, 1995, was approximately 19,000.
Financial Information about Foreign and Domestic Operations and Export
Sales
The Company has subsidiaries and affiliates operating in twenty-nine
countries. The primary operations of the international subsidiaries are
similar to the Company's domestic business in products and markets
served. The Management's Discussion and Analysis and Notes 16 and 18 to
the Financial Statements of the Annual Report to Shareholders are hereby
incorporated by reference herein. United States export sales are
immaterial.
I-5
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SONOCO PRODUCTS COMPANY AND CONSOLIDATED SUBSIDIARIES
ITEM 2. PROPERTIES
- ------------------
The main plant and corporate offices are located in Hartsville, South
Carolina. The Company has 181 branch or manufacturing operations in the
United States, 25 in Canada and 73 in 27 other international countries.
Information about the Company's manufacturing operations by segment
follows:
Segment
-------------------------------
Converted
Products Paper International
--------- ----- -------------
Number of Plants:
Owned 70 31 47
Leased for terms up to ten years
with options to renew for
additional terms 71 5 51
Leased with lease purchase agreements 3 1
--- -- --
Total manufacturing operations 144 37 98
=== == ==
The Company believes that its properties are suitable and adequate for
current needs and that the total productive capacity is adequately
utilized.
ITEM 3. LEGAL PROCEEDINGS
- -------------------------
In the normal course of business, the Company is a party to various legal
proceedings incidental to its business and is subject to a variety of
environmental and pollution control laws and regulations in all
jurisdictions in which it operates. On May 3, 1994, a civil action was
filed against the Company in the United States District Court for the
District of Massachusetts by Integrated Bagging Systems Corporation and
BPI Packaging Technologies, Inc. for alleged patent infringement. The
suit also seeks to have a patent owned by the Company declared invalid.
There were no new developments in this matter during 1995, and the
Company believes this lawsuit is without merit. The Company continues to
vigorously defend its position and expects to prevail.
Although the level of future expenditures for legal and environmental
matters is impossible to determine with any degree of probability, it is
management's opinion that such costs, when finally determined, will not
have a material adverse effect on the consolidated financial position,
liquidity or results of operation, of the Company.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
- -----------------------------------------------------------
None.
I-6
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SONOCO PRODUCTS COMPANY AND CONSOLIDATED SUBSIDIARIES
PART II
ITEM 5. MARKET FOR THE REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER
- -------------------------------------------------------------------------
MATTERS
- -------
Market and Market Prices of Common Stock
The Company's common stock began trading on the New York Stock Exchange
(NYSE) March 8, 1995, under the stock symbol "SON". Prior to that date,
the common stock was traded on the NASDAQ National Market System. The
Comparative Highlights in the 1995 Annual Report to Shareholders
(Exhibit 13 of this report) shows, by quarter, the high and low price on
the NASDAQ market for the period January 1, 1994 through March 7, 1995,
and the NYSE for the period March 8, 1995 through December 31, 1995, and
is hereby incorporated by reference herein.
Approximate Number of Security Holders
There were approximately 33,000 shareholder accounts as of March 3,
1996.
Dividends
Information required is included in the Comparative Highlights in the 1995
Annual Report to Shareholders, and is hereby incorporated by reference
herein.
On April 19, 1995, the Board of Directors declared a five percent stock
dividend for all shareholders, and of record May 19, 1995, to be
distributed on June 9, 1995.
ITEM 6. SELECTED FINANCIAL DATA
- -------------------------------
The Selected Eleven-Year Financial Data in the 1995 Annual Report to
Shareholders provides the required data, and is hereby incorporated by
reference herein.
II-1
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SONOCO PRODUCTS COMPANY AND CONSOLIDATED SUBSIDIARIES
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
- ------------------------------------------------------------------------
RESULTS OF OPERATIONS
- ---------------------
The information presented under Management's Discussion and Analysis of
the 1995 Annual Report to Shareholders is hereby incorporated by
reference herein.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
- ---------------------------------------------------
Consolidated Financial Statements
The consolidated financial statements, notes to consolidated financial
statements and the report of Certified Public Accountants for the Company
included in the 1995 Annual Report to Shareholders are hereby incorporated
by reference herein.
Supplementary Financial Data
The information set forth under "Comparative Highlights" in the 1995 Annual
Report to Shareholders is hereby incorporated by reference herein.
II-2
10
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Directors of
Sonoco Products Company:
Our report on the consolidated financial statements of Sonoco Products Company
has been incorporated by reference in this Form 10-K from page 45 of the 1995
Annual Report to Shareholders of Sonoco Products Company. In connection with
our audits of such financial statements, we have also audited the related
financial statement schedule listed in the exhibit index of this Form 10-K.
In our opinion, the financial statement schedule referred to above, when
considered in relation to the basic fianancial statements taken as a whole,
presents fairly, in all material respects, the information required to be
included therein.
/s/ Coopers & Lybrand L.L.P.
----------------------------
COOPERS & LYBRAND L.L.P.
Charlotte, North Carolina
January 31, 1996
II-3
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SONOCO PRODUCTS COMPANY AND CONSOLIDATED SUBSIDIARIES
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
- -----------------------------------------------------------------------
FINANCIAL DISCLOSURE
- --------------------
None.
II-4
12
SONOCO PRODUCTS COMPANY AND CONSOLIDATED SUBSIDIARIES
PART III
ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
- -----------------------------------------------------------
Identification of Directors
Information about the Directors of the Company and Compliance with the
Securities Exchange Act of 1934 is shown on pages 4 through 10 and page
27, respectively, of the Definitive Proxy Statement (included as Exhibit
99-1 of this report) and is hereby incorporated by reference herein.
Identification of Executive Officers
YEAR FIRST
ELECTED BUSINESS EXPERIENCE
NAME AGE POSITION OFFICER DURING LAST FIVE YEARS
---- --- -------- ---------- ----------------------
C. W. Coker 62 Chairman of the 1961 Present position since 1990.
Board and Chief
Executive Officer
P. C. Browning 54 President and Chief 1993 Present position since February
Operating Officer 1996, previously having served as
Executive Vice President - Global
Industrial Products and Paper
Divisions since 1993. President,
Chairman and Chief Executive
Officer - National Gypsum Company
(manufacturer and supplier of
products and services used in
building and construction) since
1990.
T. C. Coxe, III 65 Senior Executive 1977 Present position since 1993, Vice
President previously having served as
Executive Vice President since 1985.
Retired February 1996.
L. Benatar 66 Senior Vice President 1993 Present position since 1993.
Chairman and Chief Executive Officer
of Engraph, Inc. (printer and
fabricator of roll labels, decals,
specialty paperboard items and
flexible packaging) since 1981. Retirement
announced for Spring 1996.
B. W. Campbell 46 Vice President - 1996 Present position since February 1996,
Information previously having served
Services as Staff Vice President - Information Services
since 1991.
III-1
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SONOCO PRODUCTS COMPANY AND CONSOLIDATED SUBSIDIARIES
ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT, CONTINUED
- -----------------------------------------------------------
YEAR FIRST
ELECTED BUSINESS EXPERIENCE
NAME AGE POSITION OFFICER DURING LAST FIVE YEARS
---- --- -------- ---------- ----------------------
A. V. Cecil 54 Vice President - 1996 Present position since January 1996.
Investor Relations Prior to joining the Company, was
and Corporate with National Gypsum Company as
Communications Vice President - Corporate Communi-
cations & Investor Relations since 1993
and Vice President - Corporate Public
Affairs since 1990.
C. W. Claypool 60 Vice President - 1987 Present position since 1987.
Paper Division
P. C. Coggeshall, Jr. 52 Vice President - 1979 Present position since 1991.
Administration
H. E. DeLoach, Jr. 51 Executive Vice 1986 Present position since February 1993,
President previously having served as
Group Vice President since
October 1993, Vice President -
Film, Plastics and Special
Products since February 1993
and Vice President - High
Density Film Products Division
since 1989.
C. A. Hartley 47 Vice President - 1995 Present position since 1995,
Human Resources previously having served as Vice
President - Human Resources with Dames
& Moore since 1994 and Vice President -
Human Resources with National Gypsum Company
since 1991.
F. T. Hill, Jr. 43 Vice President and 1987 Present position since 1995,
Chief Financial previously having served as Vice
Officer President - Finance since 1994 and Vice
President - Industrial Products North
America since 1990.
R. E. Holley 53 Vice President - 1987 Present position since 1993,
High Density previously having served as
Film Products Vice President - Total Quality Management
since 1990.
III-2
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SONOCO PRODUCTS COMPANY AND CONSOLIDATED SUBSIDIARIES
ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT, CONTINUED
- -----------------------------------------------------------
YEAR FIRST
ELECTED BUSINESS EXPERIENCE
NAME AGE POSITION OFFICER DURING LAST FIVE YEARS
---- --- -------- ---------- ----------------------
C. J. Hupfer 49 Vice President, 1988 Present position since 1995,
Treasurer and previously having served as
Corporate Secretary Treasurer since 1988.
J. R. Kelley 41 Vice President - 1994 Present position since 1994,
Industrial previously having served as
Products Division - Division Vice President - Industrial
North America Industrial Container since 1990.
R. L. McGowan, Jr. 44 Vice President - 1996 Present position since February 1996,
Consumer Products, previously having served as Division
U.S. and Canada Vice President and General
Manager - Consumer Products
Division, U.S. and Canada since 1994
and Division Vice President - Sales,
Marketing and Technology - Consumer Products
Division since 1987.
H. J. Moran 63 Executive Vice 1987 Present position since February 1996,
President previously having served as Group Vice
President - Consumer Packaging Group since
1993 and Vice President and General
Manager - Consumer Packaging since 1990.
E. P. Norman, Jr. 59 Vice President - 1989 Present position since 1989.
Technology
M. M. Richardson 61 Vice President of 1996 Present position since February 1996,
Sonoco and President previously having served as Chief
of Sonoco Engraph Executive Officer - Sonoco
Engraph's label, screen printing
and paperboard carton businesses
since 1995, President and Chief
Operating Officer of Engraph
since 1994, Executive Vice
President and Chief Operating
Officer since 1992 and Group Vice
President since 1983.
Family Relationships
---------------------
C. W. Coker and F. L. H. Coker are brothers and the first cousins of
J. L. Coker and P. C. Coggeshall, Jr.
III-3
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SONOCO PRODUCTS COMPANY AND CONSOLIDATED SUBSIDIARIES
ITEM 11. EXECUTIVE COMPENSATION
- -------------------------------
Executive Compensation, as discussed on pages 14 - 16 and pages 18 - 23 of
the Proxy Statement, included as Exhibit 99-1 of this report, is
hereby incorporated by reference herein.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
- -----------------------------------------------------------------------
The security ownership of management as shown on pages 12 - 13 of the
Proxy Statement, Exhibit 99-1 of this report, is hereby incorporated by
reference herein.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
- -------------------------------------------------------
Transactions with management as shown on pages 23 - 24 of the Proxy
Statement, included as Exhibit 99-1 of this report, is hereby incorporated
by reference herein.
III-4
16
SONOCO PRODUCTS COMPANY AND CONSOLIDATED SUBSIDIARIES
PART IV
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K
- ------------------------------------------------------------------------
Data incorporated by reference from the
1995 Annual Report to Shareholders
(included as Exhibit 13 of this report):
Comparative Highlights (Selected Quarterly
Financial Data)
Management's Discussion and Analysis of
Financial Condition and Results of
Operations
Selected Eleven-Year Financial Data
Consolidated Balance Sheets as of
December 31, 1995 and 1994
Consolidated Statements of Income for
the years ended December 31, 1995, 1994 and 1993
Consolidated Statements of Changes in
Shareholders' Equity for the years ended
December 31, 1995, 1994 and 1993
Consolidated Statements of Cash Flows
for the years ended December 31, 1995,
1994 and 1993
Notes to Consolidated Financial Statements
Shareholder Information (Selected Financial Data)
Data submitted herewith:
Report of Independent Accountants (included under Item 8)
IV-1
17
SONOCO PRODUCTS COMPANY AND CONSOLIDATED SUBSIDIARIES
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON
- ---------------------------------------------------------------
FORM 8-K, CONTINUED
- --------
Financial Statement Schedule:
Schedule II - Valuation and Qualifying Accounts
All other schedules are omitted because they
are not required, are not applicable or the
required information is given in the
financial statements or notes thereto.
Exhibits:
4 Instruments Defining the Rights of
Securities Holders, including Indentures *
10 Material Contracts
11 Computation of Earnings Per Share
13 1995 Annual Report to Shareholders
21 Subsidiaries and Affiliates of the Registrant
23 Consent of Independent Accountants
27 Financial Data Schedule (for SEC use only)
99-1 Proxy Statement, filed in conjunction
with annual shareholders' meeting
scheduled for April 17, 1996
99-2 Form 11-K Annual Report - 1983 and
1991 Sonoco Products Company Key
Employee Stock Option Plans
* Incorporated by reference to the Registrant's Form S-3 (filed October 4,
1993, File No. 33-50503, and June 6, 1991, File No. 33-40538).
IV-2
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SONOCO PRODUCTS COMPANY AND CONSOLIDATED SUBSIDIARIES
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON
- ---------------------------------------------------------------
FORM 8-K, CONTINUED
- --------
Reports on Form 8-K
No reports on Form 8-K were filed by the Company during the fourth quarter
of 1995.
IV-3
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SONOCO PRODUCTS COMPANY AND CONSOLIDATED SUBSIDIARIES
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS
FOR THE YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993
(DOLLARS IN THOUSANDS)
COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E
- -------- --------- --------- -------- --------
BALANCE ADDITIONS
AT CHARGED BALANCE
BEGINNING TO AT
OF COSTS AND DEDUC- END OF
DESCRIPTION PERIOD EXPENSES TIONS(1) PERIOD
- ----------- --------- --------- -------- -------
1995
----
Restructuring Reserve $10,923 $ $ 3,794 $ 7,129
======= ======= ======= =======
Allowance for Doubtful
Accounts $ 6,058 $ 3,168 $ 2,896 $ 6,330
======= ======= ======= =======
1994
----
Restructuring Reserve $27,114 $ $16,191 $10,923
======= ======= ======= =======
Allowance for Doubtful
Accounts $ 6,514 $ 2,546 $ 3,002 $ 6,058
======= ======= ======= =======
1993
----
Restructuring Reserve $39,130 $ $12,016 $27,114
======= ======= ======= =======
Allowance for Doubtful
Accounts $ 3,511 $ 5,537 $ 2,534 $ 6,514
======= ======= ======= =======
(1) Includes amounts written off, translation adjustments and payments.
IV-4
20
SONOCO PRODUCTS COMPANY AND CONSOLIDATED SUBSIDIARIES
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized, on this 27th day of March
1996.
SONOCO PRODUCTS COMPANY
/s/ C. W. Coker
----------------------------
C. W. Coker
Chief Executive Officer
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report is signed below by the following person on behalf of the Registrant and
in the capacities indicated on this 27th day of March 1996.
/s/ F. T. Hill, Jr.
-------------------------------
F. T. Hill, Jr.
Chief Financial Officer
(and Principal Accounting
Officer)
IV-5
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SONOCO PRODUCTS COMPANY AND CONSOLIDATED SUBSIDIARIES
SIGNATURES, CONTINUED
- ----------
/s/ C. W. Coker Chief Executive Officer and
- ----------------------------- Director
C. W. Coker
/s/ P. C. Browning President, Chief Operating Officer and
- ----------------------------- Director
P. C. Browning
/s/ L. Benatar Senior Vice President and
- ----------------------------- Director
L. Benatar
/s/ C. J. Bradshaw Director
- -----------------------------
C. J. Bradshaw
/s/ R. J. Brown Director
- -----------------------------
R. J. Brown
/s/ F. L. H. Coker Director
- -----------------------------
F. L. H. Coker
Director
- -----------------------------
J. L. Coker
/s/ T. C. Coxe, III Director
- -----------------------------
T. C. Coxe, III
/s/ A. T. Dickson Director
- -----------------------------
A. T. Dickson
/s/ R. E. Elberson Director
- -----------------------------
R. E. Elberson
/s/ J. C. Fort Director
- -----------------------------
J. C. Fort
/s/ P. Fulton Director
- -----------------------------
P. Fulton
/s/ B. L. M. Kasriel Director
- -----------------------------
B. L. M. Kasriel
Director
- -----------------------------
R. C. King, Jr.
/s/ E. H. Lawton, Jr. Director
- -----------------------------
E. H. Lawton, Jr.
/s/ H. L. McColl, Jr. Director
- -----------------------------
H. L. McColl, Jr.
/s/ E. C. Wall, Jr. Director
- -----------------------------
E. C. Wall, Jr.
/s/ Dona Davis Young Director
- ------------------------------
Dona Davis Young
IV-6
22
SONOCO PRODUCTS COMPANY AND CONSOLIDATED SUBSIDIARIES
EXHBIT INDEX
Exhibit
Number Description
------- -----------
4 Instruments Defining the Rights of
Securities Holders, including Indentures*
10 Material Contracts
11 Computation of Earnings Per Share
13 1995 Annual Report to Shareholders
21 Subsidiaries and Affiliates of the Registrant
23 Consent of Independent Accountants
27 Financial Data Schedule
99-1 Proxy Statement, filed in conjunction with
annual shareholders' meeting scheduled for
April 17, 1996
99-2 Form 11-K Annual Report - 1983 and 1991
Sonoco Products Company Key Employee
Stock Option Plans
*Incorporated by reference to the Registrant's Form S-3 (filed October 4, 1993,
File No. 33-50503, and June 6, 1991, file No. 33-40538).