AF&PA Releases Q3 2024 Boxboard Quarterly Report

Silgan Holdings Inc. reported second quarter 2023 net sales of $1.43 billion and net income of $78.9 million, or $0.71 per diluted share, as compared to second quarter 2022 net sales of $1.54 billion and net income of $92.7 million, or $0.83 per diluted share. Adjusted net income per diluted share for the second quarter of 2023 was $0.83, after adjustments increasing net income per diluted share by $0.12. Adjusted net income per diluted share for the second quarter of 2022, which included $0.06 per diluted share from non-recurring income associated with Russia, was a record $1.09 after adjustments increasing net income per diluted share by $0.26.

Fourth Quarter Highlights and other notable items: *Net sales of $5.0 billion *Net income of $110 million, net income included $344 million ($239 million of which was non-cash) of restructuring and other costs, net and a $239 million gain on sale of the Company’s interior partitions converting operations and Chattanooga, Tennessee uncoated recycled paperboard mill *Results negatively impacted by $64 million due to economic downtime and a $40 million increase in non-cash pension costs, each compared to the fourth quarter of fiscal 2022; WestRock’s U.S. qualified and non-qualified pension plans remain overfunded *Announced 10% dividend increase in October 2023 *Announced proposed business combination with Smurfit Kappa Group plc to create a global leader in sustainable packaging (the “Transaction”)

Q1 2022 Highlights *Net Sales were $2,245 million versus $1,649 million in the prior year quarter. *Net Organic Sales increased 3% versus the prior year quarter driven by increased demand for innovative fiber-based packaging solutions and expansion into new market segments and geographies. *Net Income was $107 million versus $54 million in the prior year quarter. *Integration of recently expanded European platform continued; on track to deliver $40 million of synergies over three years. *New K2 Coated Recycled Paperboard (CRB) machine in Kalamazoo, Michigan began operating and the ramp in production is meeting expectations; on track to achieve $50 million in incremental EBITDA in 2022 and $130 million in incremental EBITDA over three years. *Global liquidity was $1,078 million at quarter end.