Silgan reports higher sales for plastic containers and closures businesses

By Jim Johnson
Senior Staff Reporter

Published: April 30, 2014 11:27 am ET
Updated: May 1, 2014 1:40 pm ET

Related to this story

Topics Packaging

Integration of Portola Packaging Inc., acquired late last year, is going “pretty well” for Silgan Holdings Inc., the company said.

Silgan, based in Stamford, Conn., said first quarter earnings benefitted by about 2 cents per share thanks to the addition of Portola.

For the year, the company expects to add between 5 and 10 cents per share of profit thanks to the acquisition.

“The integration is going pretty well, so I think we’re gaining confidence on the ability to certainly be in that range and perhaps even to the higher side of that range before the year is out,” Chief Financial Officer Robert B. Lewis said on a conference call to discuss first quarter results.

Overall, Silgan saw revenue increase across all lines of business, including plastic containers and closures, as profits also increased.

The Stamford, Conn.-based company earned $31.5 million, or 49 cents per diluted share, on revenue of $855.8 million for the quarter ended March 31. That compares to earnings of $25.4 million, or 38 cents per diluted share, on revenue of $795.7 million for last year’s first quarter.

A large portion of the increase in revenue comes from the Portola acquisition in October, the company said.

Silgan breaks its business into three segments, metal containers, plastics containers and closures.

Closure sales were $213.8 million during the first quarter, an increase of $52.7 million from $161.8 million for the first quarter of 2013. The increase is primarily due to a unit volume increase due largely to the Portola deal. Favorable foreign currency translation also helped, the company said.

Revenue from plastic containers were $173.6 million for the first quarter, up from $170.8 million for the first three months of 2013, Silgan reported.

Net sales of the plastic container business were $173.6 million in the first quarter of 2014, an increase of $2.8 million, or 1.6 percent, as compared to $170.8 million in 2013.

The higher revenue from plastic containers comes primarily from higher selling prices due to a pass through of higher raw material costs and what the company calls a more favorable mix of products sold.

A volume decrease of about 2 percent, due to efforts to rebalance the business portfolio, as well as unfavorable foreign currency translation partially offset higher revenues, the company said.

Metal container sales were $468.4 million, up $4.6 million from the previous first quarter.

Silgan also it expects adjusted net income of $3.10 to $3.30 per diluted share for the full year.


Comments

Silgan reports higher sales for plastic containers and closures businesses

By Jim Johnson
Senior Staff Reporter

Published: April 30, 2014 11:27 am ET
Updated: May 1, 2014 1:40 pm ET

Post Your Comments


Back to story


More stories

Image

French investment firm buys Alabama-based CSP Technologies

January 30, 2015 1:10 pm ET

A French investment firm has finalized a deal to buy CSP Technologies Inc., an Auburn, Ala., company that makes specialty plastics packaging.    More

Image

Report: Brands are falling short on packaging sustainability

January 29, 2015 5:19 pm ET

Packaging in general, and plastic packaging in particular, has a long way to go in terms of recycling, according to a pair of environmental groups.    More

Image

Profit dips at Bemis Co. Inc.

January 29, 2015 2:04 pm ET

Profit dipped for Bemis Co. Inc. for all of 2014, but were up during the fourth quarter in what the company's leader called a “pivotal year....    More

Image

Plastics News Now: Losing weight with style, plastics in the Dragons' Den

January 29, 2015 6:00 am ET

A 19-year-old entrepreneur brings business to a U.K. injection molder after winning support on TV's Dragons' Den, auto suppliers combine...    More

Image

African equity fund invests in Kenya's General Plastics

January 28, 2015 4:24 pm ET

An African investment fund specializing in agriculture has invested in Kenyan packaging firm General Plastics Ltd. to provide funds to expand in the r...    More

Market Reports

Plastics in Automotive: Innovation & Emerging Trends

This special report newly released by PN and sponsored by The Conair Group examines current trends in the use of plastics in automotive, materials innovations and the changing landscape. It includes a review of legislative/regulatory activity impacting vehicle development and lightweighting, market opportunities & challenges for mold and toolmakers, innovative design strategies being implemented by major OEMs and suppliers, as well as a review of key indicators in Canada, Mexico, Brazil and China.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Injection Molding Market Analysis & Processor Rankings

Plastics News BUNDLED package contains our in-depth Market Analysis of the Injection Molding segment. You will gain keen insight on current trends and our economic outlook.

As a BONUS this includes PN's updated 2014 database of North American Injection Molders RANKED by sales volume. Sort, merge, mail & prospect by end market, materials processed, region, # of plants and more.

Learn more

Upcoming Plastics News Events

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events