SILGAN’S NEW RECORD GROWTH EXPECTED TO BOOST PROFITS

Once again Silgan Holdings posted record growth last year with full year 2021 net income of $359.1 million, compared to full year 2020 net income of $308.7 million.

Adam Greenlee, president and chief executive officer, notes of this positive data, “The Silgan team delivered another year of record performance and double-digit earnings growth and continued to demonstrate the power of the company’s core product portfolio, disciplined capital allocation model, strong operating performance and relentless focus on meeting the unique requirements of our customers.”

In this regard he adds that “for the full year 2021, the company delivered record adjusted earnings per diluted share of $3.40, an 11 percent increase over the prior year’s record in 2020, and record free cash flow of $466.1 million. The Silgan team continued to successfully navigate the ongoing challenges related to the global pandemic, as demand remained at high levels for our Dispensing and Specialty Closures and Metal Container products, with new record volume levels in both segments. Strong operating performance continued to help offset unprecedented inflation and ongoing labor and supply chain challenges, which abated during the fourth quarter but have yet to normalize.”

According to Greenlee, the company expects further improvements in supply chain and labor issues, as well as a more stable resin environment, to continue this year. “In addition, our teams are working diligently on the successful integration of the three acquisitions completed in 2021, which are expected to deliver significant additional earnings growth in 2022. Therefore, we estimate adjusted earnings per share in 2022 to be in the range of $3.80 to $4.00, representing a 15% midpoint increase over record levels in 2021. Our free cash flow estimate for 2022 is estimated at approximately $350 million, as we anticipate an increase in working capital primarily related to significant metal inflation in 2022, increased capital expenditures for growth investment opportunities with major customers, and higher cash taxes that will more than offset strong earnings growth,” he reiterates.

The increase in unit volumes over record volumes in 2020 was primarily due to continued strong levels of consumer demand for food cans and continued growth in pet food, as well as customer purchases ahead of significant raw material inflation expected in 2022.

On the metal container side in 2021, Silgan’s revenues reached $253.7 million which is an increase of $7.1 million over the previous year whose net profit figure was $246.6 million.

In relation to metal packaging, the company expects these results to improve this year, compared to 2021, as a result of more efficient operating performance, cost improvements, the pass-through of other cost inflation to customers and the inclusion of a full year since the acquisition.