Have a look at the "Utilities" redbook:
http://www.redbooks.ibm.com/redbooks/pdfs/sg246289.pdf
On page 156 it says: "When a DB2 utility job encounters DFSORT problems it will put some messages in the SYSPRINT output data set and then abend with S04E RC00E40347 as shown in Example 6-14. The reason code 00E4005 means that one or more sort subtasks have been abending."
The problem *could* be that there is not enough room in the SORT pool, but most likely, there was an allocation problem with DFSORT (which most often is caused by too small values for primary and/or secondary extents with sort datasets; look in the JCL of your REORG job).
If it's indeed a JCL "problem", I would propose --as the redbook also suggests-- to modify the REORG statement to use dynamic (DB2) allocation.