SILGAN: mixed results in its 3Q2024 with a 4% rise in revenues

Silgan Holdings has reported mixed results for the third quarter of 2024, which were mixed. Despite a 3% decline in net sales to around $1.8 million, primarily due to lower raw material costs and softer packaging volumes in the Metal Packaging segment, the company experienced a 4% increase in adjusted net income per diluted share to $1.21. Looking ahead, Silgan anticipates significant earnings growth in 2025, with double-digit EPS growth and improved packaging volumes.

CEO Adam Greenlee announced the successful integration of Weener Packaging, which is expected to enhance the company’s dispensing solutions.

Other key company highlights include record third quarter adjusted EBIT in dispensers and specialty closures. On the other hand, net sales declined 3%, but adjusted net earnings per diluted share increased 4%.

Fourth quarter 2024 earnings per share forecast between $0.70 and $0.88; Full year adjusted net income per diluted share is estimated between $3.55 and $3.65 and significant earnings growth is expected in 2025, with double-digit EPS growth.

SILGAN’s outlook is for growth in dispensers and special half-point closures by 2025. Custom Containers also foresees growth, but low.

The company anticipates a decline in metal packaging volumes due to adverse weather and customer adjustments. Free-fall cash flow is estimated at $375 million by 2024, with capital expenditures of about $255 million.

Company executives say they see positive consumer sentiment and potential growth in 2025 as household consumption recovers.