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June 11, 2019 02:37 PM

Silgan unveils some details within its sales, production numbers

Jim Johnson
Staff Writer
Plastics News Staff
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    Silgan Holdings
    Silgan Holdings unveiled some details of its production and sales in a financial presentation.

    Silgan Holdings earns its money by making containers, both metal and plastics, as well as closures, both metal and plastic.

    Now the Stamford, Conn.-based company is proving some insight about how its sales break down within those categories.

    Plastics containers made up $614 million in sales for the company last year, with biggest share coming from food packaging at 42 percent. Home care accounted for 20 percent of sales within the plastic container business and beauty and personal care added another 17 percent. Consumer health chipped in 15 percent and pet food totaled 6 percent, the company said.

    A total of 83 percent of the company's sales in plastic containers came from the United States, and the remaining 17 percent came from Canada.

    Silgan previously reorganized its plastic container business to improve the economics of the business.

    Adjusted earnings before interest, tax, depreciation and amortization in that category has improved in each of the past two years after bottoming out in 2016.

    Silgan uses thermoforming, blow molding and injection molding to make its plastic containers.

    The company's closures business had sales of $1.5 billion last year and includes Silgan's dispensing business. Plastic closures accounted for 22 percent of that total, dispensing was 44 percent, and metal closures were 34 percent.

    The United States accounted for 52 percent of closure sales and Europe added 38 percent. The rest of the world was 10 percent.

    The dispensing business includes products such as pumps and sprays. And while that portion of the business only accounted for 10 percent of the total closure volume, the segment provided 44 percent of the closure sales.

    Plastic closures include categories for both dairy and other beverages. Dairy closures were 29 percent of the company's 2018 closure volume and 14 percent of the sales. Other plastic closures non-dairy drinks equaled 26 percent of the overall closure volume and 8 percent of the sales. For the metal closure business, volume was 35 percent and sales was 34 percent.

    The company, in its presentation, indicated the growth trend is steady for dispensing, flat for both plastic dairy and metal closures and modest for other plastic closures.

    Plastic containers are seeing steady growth in both pet food and consumer health and modest growth in home care. Both food and beauty and personal care are stable, the company said.

    Metal containers were the company's biggest sales category last year at $2.4 billion.

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