This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Silgan 2Q Net Income Plunges 79 Pct On Weak Demand

STAMFORD, Conn. (AP) â¿¿ Silgan Holdings Inc., a packaging-products supplier, said Wednesday its second-quarter net income fell 79 percent, as metal food container demand was weak and European demand slackened.

Net income missed expectations and shares slid nearly 6 percent in morning trading.

Silgan makes metal and plastic containers and closures for North American and European food, beverage and consumer products.

The second quarter was "a bit more challenging than expected," said CEO Tony Allott. "We were disappointed with our metal food container volumes thus far, as the vegetable pack got off to a slow start."

The timing of shipments and weaker demand in Europe hurt results as well, he added.

Net income for the April-to-June quarter fell to $10.6 million, or 15 cents per share, from $51.2 million, or 73 cents per share, in the 2011 second quarter. Excluding one-time items, net income totaled 55 cents per share.

Analysts, on average, expected net income of 58 cents per share, according to FactSet.

Revenue was nearly flat at $821.6 million, from $822.2 million, last year. Analysts expected $822 million.

Despite the lackluster quarter, the company said that its plastic container business is showing signs of improvement and confirmed full year guidance for adjusted net income of $2.80 to $2.90 per share. Analysts, on average, were predicting net income of $2.89 per share, with estimates ranging from $2.80 to $2.95.

Silgan Holdings shares fell $2.62, or 6.1 percent, to $40.56 in morning trading, recovering slightly from an earlier drop of 7.2 percent. The stock ended Tuesday up nearly 12 percent since the beginning of the year.

Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs