Silgan Announces Third Quarter Earnings

Silgan Holdings Inc. (Nasdaq:SLGN), a leading supplier of sustainable rigid packaging solutions for consumer goods products, today reported third quarter 2021 net income of $106.3 million, or $0.96 per diluted share, as compared to third quarter 2020 net income of $112.9 million, or $1.01 per diluted share.

“We delivered third quarter 2021 adjusted earnings per diluted share of $1.02, which was more than 30 percent above any other third quarter in Company history with the exception of the pandemic driven third quarter of 2020. We were able to sustain performance near the prior year’s record level as demand for many of our products remains exceptionally high. Record volumes in our Dispensing and Specialty Closures and Metal Container segments and tremendous operating performance helped offset unprecedented inflation and continued supply chain and labor challenges, while strong year-to-date volumes in our Custom Container segment remain above pre-pandemic levels,” said Adam Greenlee, President and CEO. “Sustained strong volumes for the beauty, fragrance, food and beverage markets in our Dispensing and Specialty Closures segment were more than offset by the unfavorable impact of significant raw material inflation and the contractual lags in passing these increased costs of over $10 million on to our customers. Our Metal Container segment achieved record volume levels for any quarter in Company history driven primarily by strong seasonal vegetable and pet food markets, but continued to be negatively impacted by higher production costs and inefficiencies resulting from supply disruptions and labor challenges throughout the entire supply chain. Strong operating performance and effective cost controls in our Custom Container segment helped offset lower volumes as compared to the pandemic driven record volumes last year,” continued Mr. Greenlee. “In addition, we would like to welcome our newest employees who join the Silgan team from our recently announced acquisitions. We look forward to successfully integrating these businesses and offering our expanded product portfolio and capabilities to our new and shared customers,” said Mr. Greenlee.

Net sales for the third quarter of 2021 were $1.65 billion, an increase of $162.6 million, or 10.9 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 third quarter of 2021 was $167.9 million, a decrease of $6.1 million, or 3.5 percent, as compared to $174.0 million for the third quarter of 2020, and margins decreased to 10.2 percent from 11.7 percent for the same periods. The decrease in income before interest and income taxes was primarily the result of higher costs attributed to announced acquisitions and lower income in the Dispensing and Specialty Closures segment, partially offset by higher income in the Custom Container segment. Costs attributed to announced acquisitions for the third quarter of 2021 were $4.1 million for the acquisitions of Gateway Plastics and Unicep Packaging in September 2021 and Easytech Closures S.p.A in October 2021. Costs attributed to announced acquisitions were $0.7 million for the third quarter of 2020. Rationalization charges were $2.3 million and $2.5 million in the third quarters of 2021 and 2020, respectively.
details at: https://silganholdingsinc.gcs-web.com/news-releases/news-release-details/silgan-announces-third-quarter-earnings-and-raises-estimate-cash

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