Highlights
*Record earnings per diluted share (EPS) of $0.76, an increase of 15% over the prior year quarter
*Record adjusted EPS of $0.78 per diluted share
*Raises full year 2022 adjusted EPS guidance
*Achieved record revenue in each business segment
*Achieved record segment income in Dispensing and Specialty Closures and Custom Containers
*Increased cash dividend per share by 14.3%
*Redeemed outstanding 4 3/4% Senior Notes due 2025
Silgan Holdings Inc. (Nasdaq:SLGN), a leading supplier of sustainable rigid packaging solutions for consumer goods products, today reported first quarter 2022 net income of $84.9 million, or $0.76 per diluted share, as compared to first quarter 2021 net income of $73.3 million, or $0.66 per diluted share.
Adjusted net income per diluted share for the first quarter of 2022 was $0.78, after adjustments increasing net income per diluted share by $0.02. Adjusted net income per diluted share for the first quarter of 2021 was $0.75, after adjustments increasing net income per diluted share by $0.09. A reconciliation of net income per diluted share to “adjusted net income per diluted share,” a Non-GAAP financial measure used by the Company that adjusts net income per diluted share for certain items, can be found in Tables A and B at the back of this press release.
“Silgan continues to demonstrate the power of our portfolio by performing well in dynamic economic circumstances, delivering another quarter of record adjusted earnings per diluted share of $0.78, a 4 percent increase over the prior year record first quarter and a 70 percent increase over the pre-pandemic first quarter of 2019,” said Adam Greenlee, President and CEO. “Revenues grew significantly in each of our businesses as we successfully passed through raw material and other cost inflation to the market, and our teams did an outstanding job mitigating other inflationary items through improved productivity and operating efficiencies. Volumes for each of our segments would have been even higher had our customers not continued to be challenged with production shortfalls due to disruptions in their supply chains and production facilities. Our Dispensing and Specialty Closures segment benefited from continued strong demand from the fragrance and beauty markets, outstanding performance from our 2021 acquisitions and lower resin costs. Our Metal Containers segment volumes have stabilized well above pre-pandemic levels, but as expected they were lower in the first quarter as a result of customer pre-buy activity that occurred late last year in advance of unprecedented raw material inflation in 2022. Strong operating performance and lower resin costs in our Custom Containers segment offset anticipated lower volumes compared to the final quarter of pandemic driven volumes last year,” continued Mr. Greenlee. “As we look to the full year of 2022, we see further growth opportunities as we benefit from our deep customer relationships, stronger than anticipated performance from our recent acquisitions and the leverage of our broad operating footprint to improve our performance in the year. Therefore, we are raising our 2022 adjusted earnings per diluted share from a range of $3.80 to $4.00 to a range of $3.90 to $4.05, which represents a 17 percent increase at the midpoint above record 2021 levels,” concluded Mr. Greenlee.
Net sales for the first quarter of 2022 were $1.44 billion, an increase of $203.8 million, or 16.5 percent, as compared to the same period in the prior year. This increase was the result of higher net sales in all segments.
Income before interest and income taxes for the first quarter of 2022 was $143.4 million, an increase of $16.8 million, or 13.3 percent, as compared to $126.6 million for the first quarter of 2021, while margins decreased to 9.9 percent from 10.2 percent for the same periods. The increase in income before interest and income taxes was primarily the result of higher income in the Dispensing and Specialty Closures and Custom Containers segments, partially offset by lower income in the Metal Containers segment. The decrease in segment income margin from the prior year period is primarily due to the mathematical consequence of the pass through of significant raw material inflation in 2022 in each of the segments. Rationalization charges were $1.4 million and $10.3 million in the first quarters of 2022 and 2021, respectively.
details at: https://silganholdingsinc.gcs-web.com/news-releases/news-release-details/silgan-announces-record-first-quarter-earnings-and-raises-full