Silgan Holdings Inc. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2018; Provides Earnings Guidance for the First Quarter and Full Year of 2019
January 29, 2019 at 05:00 pm
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Silgan Holdings Inc. reported unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2018. For the quarter, the company's net sales were $1,070.5 million against $995.7 million a year ago. Net income was $38.2 million against $146.1 million a year ago. Basic earnings per share was $0.35 against $1.32 a year ago. Diluted earnings per share was $0.34 against $1.31 a year ago.
For the year, the company's net sales were $4,448.9 million against $4,089.9 million a year ago. Net income was $224.0 million against $269.7 million a year ago. Basic earnings per share was $2.03 against $2.44 a year ago. Diluted earnings per share was $2.01 against $2.42 a year ago.
The company's net sales in the metal container business are expected to increase in 2019 as compared to 2018 primarily due to the pass through of anticipated higher raw material and other manufacturing costs, partially offset by an anticipated decline in unit volumes. Unit volumes in the metal container business are expected to decline due to customer pre-buy activity in 2018 in advance of raw material price increases expected for 2019, the expected continuation of an inventory and portfolio management program at a certain customer and the continued impact from the prior year loss of a smaller customer, partially offset by anticipated continued growth in pet food volumes and an expected more normal fruit and vegetable pack in Europe. Segment income in the metal container business is expected to benefit from a normal production level planned in 2019 as compared to the unfavorable overhead absorption from a significant reduction of finished goods inventory in 2018 and continued manufacturing efficiencies, offset by the unfavorable pension impact and anticipated lower unit volumes. Net sales in the closures business are expected to increase in 2019 as compared to 2018 primarily as a result of the pass through of anticipated higher raw material costs and anticipated higher unit volumes. Segment income in the closures business is expected to benefit from anticipated higher unit volumes and continued manufacturing efficiencies, offset by the unfavorable pension impact. Net sales in the plastic container business are expected to increase in 2019 as compared to the prior year as a result of the pass through of anticipated higher raw material costs and anticipated volume growth. Segment income in the plastic container business is expected to benefit from higher volumes and continued manufacturing efficiencies, partially offset by the unfavorable pension impact.
For the first quarter of 2019, the company anticipates slightly higher volumes in the closures and plastic container businesses, continued manufacturing efficiencies across all businesses, a more normal seasonal inventory build in the metal container business, the favorable impact from the lagged pass through of lower resin costs and lower interest costs, as well as lower unit volumes in the metal container business and the unfavorable non-cash pension impact of approximately $0.03 per diluted share. Unit volumes are expected to be lower in the metal container business as a result of a strong buy ahead by customers at the end of 2018, the continuation of an inventory and portfolio management program at a certain customer and the continued impact from the loss of a smaller customer in the second quarter of 2018, partially offset by anticipated higher pet food volumes. Adjusted net income per diluted share excludes rationalization charges and loss on early extinguishment of debt.
Silgan Holdings Inc. is a manufacturer of sustainable rigid packaging solutions for essential consumer goods products. The Companyâs segments include dispensing and specialty closures, metal containers and custom containers. The dispensing and specialty closures segment manufactures and sells dispensing systems and specialty closures for fragrance and beauty, food, beverage, personal and health care, home care and lawn and garden products. The metal containers segment is engaged in the manufacture and sale of steel and aluminum containers for pet and human food and general line products. The custom containers segment manufactures and sells custom designed plastic containers for pet and human food, consumer health and pharmaceutical, personal care, home care, lawn and garden and automotive products. Its products are used for a variety of end markets, and it operates over 107 manufacturing plants in North America, Europe, Asia and South America.
Silgan Holdings Inc. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2018; Provides Earnings Guidance for the First Quarter and Full Year of 2019