Silgan Holdings Inc. (Nasdaq:SLGN), a leading supplier of rigid packaging for shelf-stable food and other consumer goods products, today reported third quarter 2013 net income of $77.2 million, or $1.21 per diluted share, as compared to third quarter 2012 net income of $78.7 million, or $1.13 per diluted share.
“While adjusted net income per diluted share of $1.23 for the third quarter of 2013 was a new record, these results were below our expectations for the quarter,” said Tony Allott, President and CEO. “As expected, our metal container business did see an increase in unit volumes, although this increase was well below anticipated levels as the fruit and vegetable packs were weaker than expected in key U.S. and European regions. Our closure business continued to experience lower demand for single-serve beverages, which we attribute to cooler temperatures. Our plastic container business was negatively impacted by lower volumes in the legacy operations and delays in passing through inflationary resin costs,” continued Mr. Allott. “We view most of these volume issues to be transitory in nature and believe each of our businesses is reacting appropriately in terms of managing costs, driving manufacturing efficiencies and continuing to enhance our long-term competitive positions. In that light, we also completed the acquisition of Portola Packaging this week, and eagerly welcome this expansion of capabilities to our global closure franchise. Based on our year to date results, lower than expected volumes in the fourth quarter of 2013 and the impact of higher interest expense as a result of our recent 5½% Senior Notes issuance, we are revising our full year 2013 earnings estimate of adjusted net income per diluted share to a range of $2.75 to $2.85,” concluded Mr. Allott.
Adjusted net income per diluted share was $1.23 for the third quarter of 2013 as compared to $1.17 for the third quarter of 2012, after adjustments increasing net income per diluted share by $0.02 for the third quarter of 2013 and $0.04 for the third quarter of 2012. A reconciliation of net income per diluted share to “adjusted net income per diluted share,” a Non-GAAP financial measure used by the Company, which adjusts net income per diluted share for certain items, can be found in Tables A and B at the back of this press release.