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

EcoCortec develops marine degradeable film to help reduce debris

September 2, 2014 9:55 am ET

Croatian specialist packaging producer EcoCortec has developed marine biodegradable film products designed to combat the scourge of plastics...    More

Image

Tighter resin prices leading to price hike for PE film

August 29, 2014 11:13 am ET

One of North America's largest film makers is pushing through a polyethylene price increase due, in part, to the tight resin market.    More

Image

Sidel opens training center in Mexico

August 29, 2014 9:00 am ET

Swiss machinery company Sidel Group has opened a new training center in Guadalajara, Mexico, featuring a virtual factory environment, augmented...    More

Image

Pregis, Sealed Air settle film-foam patent dispute out of court

August 28, 2014 1:01 pm ET

A couple of packaging companies are settling their patent fight over film-foam underlayment.    More

Image

PolyOne expands special effects offerings for PET

August 27, 2014 11:03 am ET

PolyOne Corp. has added a new line of shimmer and frost-effect colorants to its InVisio line of color services and solutions.    More

Market Reports

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report analyzes economic and market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as growth strategies being implemented by thermoformed packaging companies.

Learn more

Pipe, Profile & Tubing Extrusion in North America 2014

U.S. demand for extruded plastics is expected to grow by 3 percent in 2014, with PVC remaining the largest segment.

Plastic pipe will post the strongest gains through 2018, continuing to take market share from competing materials in a range of markets.

Our latest market report provides in-depth analysis of current trends and their financial impact on the pipe, profile and tubing extrusion industry in North America.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

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

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

More Events