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

Deal puts Convergence Packaging under Comar's umbrella

October 24, 2014 2:00 pm ET

Convergence Packaging Holdings LLC, itself a product of mergers, now is joining together with Comar LLC.    More

Blow mold maker adding laser cladding

October 24, 2014 10:26 am ET

Blow molds need to be strengthened at points that wear, and an official of Canadian blow mold maker Garrtech Inc. said laser cladding can replace...    More

Image

Investment firm buys Ontario cap molder

October 23, 2014 2:01 pm ET

A company whose varied interests include food and refrigerated transportation businesses is now moving into plastic caps.    More

Image

PET bottles, flasks and an HDPE cooler take top honors in blow molding

October 23, 2014 2:39 pm ET

The Society of Plastics Engineers' Blow Molding Division presented awards to packaging innovations like triangular bottles, flask containers for Jack ...    More

Image

Bemis reports record quarterly profit

October 23, 2014 1:06 pm ET

Bemis Company Inc. saw record per-share earnings from continuing operations during the third quarter, but charges associated with the divestiture of i...    More

Market Reports

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

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 million dollar plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

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