Skip to main content
Sister Publication Links
  • Sustainable Plastics
  • Rubber News
Subscribe
  • Sign Up Free
  • Login
  • Subscribe
  • News
    • Processor News
    • Suppliers
    • More News
    • Digital Edition
    • End Markets
    • Special Reports
    • Newsletters
    • Resin pricing news
    • Videos
    • Injection Molding
    • Blow Molding
    • Film & Sheet
    • Pipe/Profile/Tubing
    • Rotomolding
    • Thermoforming
    • Recycling
    • Machinery
    • Materials
    • Molds/Tooling
    • Product news
    • Design
    • K Show
    • Mergers & Acquisitions
    • Sustainability
    • Public Policy
    • Material Insights Videos
    • Numbers that Matter
    • Automotive
    • Packaging
    • Medical
    • Consumer Products
    • Construction
    • Processor of the Year
    • Best Places to Work
    • Women Breaking the Mold
    • Rising Stars
    • Diversity
    • Most Interesting Social Media Accounts in Plastics
  • Opinion
    • The Plastics Blog
    • Kickstart
    • One Good Resin
    • Pellets and Politics
    • All Things Data
    • Viewpoint
    • From Pillar to Post
    • Perspective
    • Mailbag
    • Fake Plastic Trees
  • Shop Floor
    • Blending
    • Compounding
    • Drying
    • Injection Molding
    • Purging
    • Robotics
    • Size Reduction
    • Structural Foam
    • Tooling
    • Training
  • Events
    • K Show Livestream
    • Plastics News Events
    • Industry Events
    • Injection Molding & Design Expo
    • Livestreams/Webinars
    • Editorial Livestreams
    • Ask the Expert
    • Plastics News Events Library
    • Processor of the Year submissions
    • Plastics News Executive Forum
    • Injection Molding & Design Expo
    • Plastics News Caps & Closures
    • Women Breaking the Mold Networking Forum
    • Plastics in Automotive
    • PN Live: Mergers and Acquisitions
    • Polymer Points Live
    • Numbers that Matter Live
    • Plastics in Politics Live
    • Sustainable Plastics Live
    • Plastics Caps & Closures Library
    • Plastics in Healthcare Library
    • Women Breaking the Mold Networking Forum Library
  • Rankings & Data
    • Injection Molders
    • Blow Molders
    • Film Sheet
    • Thermoformers
    • Pipe Profile Tubing
    • Rotomolders
    • Mold/Toolmakers
    • LSR Processors
    • Recyclers
    • Compounders - List
    • Association - List
    • Plastic Lumber - List
    • All
  • Directory
  • Resin Prices
    • Commodity TPs
    • High Temp TPs
    • ETPs
    • Thermosets
    • Recycled Plastics
    • Historic Commodity Thermoplastics
    • Historic High Temp Thermoplastics
    • Historic Engineering Thermoplastics
    • Historic Thermosets
    • Historic Recycled Plastics
  • Custom
    • Sponsored Content
    • LS Mtron Sponsored Content
    • Conair Sponsored Content
    • KraussMaffei Sponsored Content
    • ENGEL Sponsored Content
    • White Papers
    • Classifieds
    • Place an Ad
    • Sign up for Early Classified
MENU
Breadcrumb
  1. Home
  2. News
July 25, 2019 02:06 PM

Silgan execs say plastics unit well positioned for growth

Jim Johnson
Staff Writer
Plastics News Staff
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print

    Years of work restructuring its plastics container business is paying off for Silgan Holdings Inc. as that part of the company is now on solid footing and looking to expand.

    "We think the business is well positioned for further growth. We've got the operational cost platform where we wanted it to be. The business is at a profit level that allows us to continue to invest to grow the business," Chief Operating Officer Adam Greenlee said.

    Silgan makes both metal and plastic containers as well as closures.

    A focus for the company in recent years has been a reorganization of its plastics container business, including the closure of locations, new facility construction and the wringing out of millions of dollars in annual costs.

    The result, Silgan said on a conference call to discuss second quarter earnings, is a business that can expect expansion.

    "A 3 percent growth rate for the plastics business is definitely attainable. We had posted really good growth last year as we were recovering and putting volume back into our system. So there's still opportunity here. As we said all along, we don't think anybody is winning in this market that we serve with our plastic bottle business. In fact, we probably are at the forefront of now winning in that business. So I do think there is opportunity for growth," CEO Tony Allott said.

    While growth is expected, the company also told stock analysts on the call that the improvements might ebb and flow.

    "As we said all along, the growth in the plastics is going to be a little lumpy for us. Looking at it by quarter, it's difficult at times," Greenlee said.

    He pointed to last year's results that saw 4 percent growth and indicated those results make it challenging to continue growth at that pace.

    With single-use plastics increasingly under attack, Silgan said its plastics business is essentially not exposed to that portion of the business. Only about 2 percent of Silgan's plastic container business is in the single-serve beverage market.

    "That's not a huge business for us," Allott said.

    Silgan, instead, relies on multiuse plastic containers for items, such as shelf-stable foods and personal care products, for the bulk of its business.

    The increased focus on plastics has Silgan talking to more with customers in terms of sustainability, but those conversations center around the use of bioplastics or recycled resins, not the elimination of plastics.

    "The conversations have increased. I think awareness is greater, but I think no fundamental change," Greenlee said.

    While the metal container business represents the bulk of Silgan's annual sales, the plastics container business is no shrinking violet. The company's website lists 15 domestic plants and eight more in Canada.

    Silgan saw net sales in that portion of the business fall by $1.2 million to $154.2 million during the second quarter, but that drop "was principally due to the pass through of lower raw material costs and the impact of unfavorable foreign currency translation," the company said in a statement.

    Production volume actually increased by about 1 percent, the company said.

    The company's closures, which includes both plastic and metal products, business saw sales fall $15.4 million during the second quarter to $363.4 million, primarily due to "foreign currency translation and a less favorable mix of products sold."

    Overall, Silgan had a profit of $31 million, or 28 cents per diluted share, on sales of $1.093 billion during the second quarter. That compares with a profit of $55.3 million, or 50 cents per diluted share, on sales of $1.059 billion during the second quarter of 2018.

    RECOMMENDED FOR YOU
    TI Fluid Systems building Michigan innovation center for e-mobility
    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Plastics News would love to hear from you. Email your letter to Editor at [email protected]

    Most Popular
    1
    Redline buys Georgia-based Quality Holdings
    2
    Mattress maker Purple continues fight against takeover
    3
    Ineos workers in Ohio on strike
    4
    Redline's ‘outrageous cultural behaviors' retain top employees
    5
    Material Insights: Polypropylene production — both virgin and recycled — in the spotlight
    SIGN UP FOR OUR FREE NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Get our newsletters

    Staying current is easy with Plastics News delivered straight to your inbox, free of charge.

    Subscribe today

    Subscribe to Plastics News

    Subscribe now
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter
    • Instagram

    Plastics News covers the business of the global plastics industry. We report news, gather data and deliver timely information that provides our readers with a competitive advantage.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI 48207-2997

    Customer Service:
    877-320-1723

    Resources
    • About
    • Staff
    • Editorial Calendar
    • Media Kit
    • Data Store
    • Digital Edition
    • Custom Content
    • People
    • Contact
    • Careers
    • Sitemap
    Related Crain Publications
    • Sustainable Plastics
    • Rubber News
    • Tire Business
    • Urethanes Technology
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • News
      • Processor News
        • Injection Molding
        • Blow Molding
        • Film & Sheet
        • Pipe/Profile/Tubing
        • Rotomolding
        • Thermoforming
        • Recycling
      • Suppliers
        • Machinery
        • Materials
        • Molds/Tooling
        • Product news
        • Design
      • More News
        • K Show
        • Mergers & Acquisitions
        • Sustainability
        • Public Policy
        • Material Insights Videos
        • Numbers that Matter
      • Digital Edition
      • End Markets
        • Automotive
        • Packaging
        • Medical
        • Consumer Products
        • Construction
      • Special Reports
        • Processor of the Year
        • Best Places to Work
        • Women Breaking the Mold
        • Rising Stars
        • Diversity
        • Most Interesting Social Media Accounts in Plastics
      • Newsletters
      • Resin pricing news
      • Videos
    • Opinion
      • The Plastics Blog
      • Kickstart
      • One Good Resin
      • Pellets and Politics
      • All Things Data
      • Viewpoint
      • From Pillar to Post
      • Perspective
      • Mailbag
      • Fake Plastic Trees
    • Shop Floor
      • Blending
      • Compounding
      • Drying
      • Injection Molding
      • Purging
      • Robotics
      • Size Reduction
      • Structural Foam
      • Tooling
      • Training
    • Events
      • K Show Livestream
      • Plastics News Events
        • Plastics News Executive Forum
        • Injection Molding & Design Expo
        • Plastics News Caps & Closures
        • Women Breaking the Mold Networking Forum
        • Plastics in Automotive
      • Industry Events
      • Injection Molding & Design Expo
      • Livestreams/Webinars
        • PN Live: Mergers and Acquisitions
      • Editorial Livestreams
        • Polymer Points Live
        • Numbers that Matter Live
        • Plastics in Politics Live
        • Sustainable Plastics Live
      • Ask the Expert
      • Plastics News Events Library
        • Plastics Caps & Closures Library
        • Plastics in Healthcare Library
        • Women Breaking the Mold Networking Forum Library
      • Processor of the Year submissions
    • Rankings & Data
      • Injection Molders
      • Blow Molders
      • Film Sheet
      • Thermoformers
      • Pipe Profile Tubing
      • Rotomolders
      • Mold/Toolmakers
      • LSR Processors
      • Recyclers
      • Compounders - List
      • Association - List
      • Plastic Lumber - List
      • All
    • Directory
    • Resin Prices
      • Commodity TPs
        • Historic Commodity Thermoplastics
      • High Temp TPs
        • Historic High Temp Thermoplastics
      • ETPs
        • Historic Engineering Thermoplastics
      • Thermosets
        • Historic Thermosets
      • Recycled Plastics
        • Historic Recycled Plastics
    • Custom
      • Sponsored Content
      • LS Mtron Sponsored Content
      • Conair Sponsored Content
      • KraussMaffei Sponsored Content
      • ENGEL Sponsored Content
      • White Papers
      • Classifieds
        • Place an Ad
        • Sign up for Early Classified