Highlights
• Record net income per share of $0.41
• Record adjusted net income per share of $0.42
• Continued significant improvement in the plastic container business
• Strong growth and accretion from Dispensing Systems operations
• Announced redemption of all outstanding 5% Senior Notes
Silgan Holdings Inc. (Nasdaq:SLGN), a leading supplier of rigid packaging for consumer goods products, today reported first quarter 2018 net income of $45.7 million, or $0.41 per diluted share, as compared to first quarter 2017 net income of $23.2 million, or $0.21 per diluted share.
“We are pleased with our first quarter 2018 results, as we reported record adjusted net income per diluted share of $0.42, an increase of 35.5 percent over the prior year period,” said Tony Allott, President and CEO. “Our closures business continued its strong performance primarily as a result of the inclusion of the Dispensing Systems operations, which was further enhanced by higher volumes in the fragrance, health care and lawn and garden markets. Our plastic container business benefitted in the first quarter of 2018 from higher volumes and continued strong operating performance. As expected, segment income in our metal container business was lower than the prior year, as the planned reduction in the seasonal inventory build resulted in a less favorable absorption of overhead costs,” continued Mr. Allott. “Since much of our performance in the quarter was driven by timing factors, we are confirming our full year 2018 earnings estimate of adjusted net income per diluted share in the range of $2.03 to $2.13, an increase of 26 percent at the midpoint of the range as compared to 2017,” concluded Mr. Allott.
Adjusted net income per diluted share was $0.42 for the first quarter of 2018, after an adjustment increasing net income per diluted share by $0.01. Adjusted net income per diluted share was $0.31 for the first quarter of 2017, after adjustments increasing net income per diluted share by $0.10. 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.
All per share amounts for the first quarter of 2017 have been adjusted for the two-for-one stock split that occurred on May 26, 2017.
Net sales for the first quarter of 2018 were $1.01 billion, an increase of $206.9 million, or 25.7 percent, as compared to $805.4 million in 2017. This increase was the result of the acquisition of the Dispensing Systems operations in April 2017 and higher net sales in each of the businesses.
Income before interest and income taxes for the first quarter of 2018 was $92.2 million, an increase of $35.4 million, or 62.3 percent, as compared to $56.8 million for the first quarter of 2017, and margins increased to 9.1 percent from 7.1 percent for the same periods. The increase in income before interest and income taxes was the result of higher segment income in the closures and plastic container businesses, partially offset by lower segment income in the metal container business. Rationalization charges were $0.7 million and $0.9 million in the first quarters of 2018 and 2017, respectively. Additionally, the first quarter of 2017 included costs attributed to announced acquisitions of $13.2 million.
more detail at: http://phx.corporate-ir.net/phoenix.zhtml?c=74726&p=irol-newsArticle&ID=2344440