Silgan reports mixed first-quarter results, net sales down 7% By Investing.com



Stamford, Connecticut – Silgan Holdings Inc. (NASDAQ: NYSE: ), a leader in sustainable rigid packaging solutions, reported first-quarter 2024 financial results, with adjusted earnings per share (EPS) at the higher end of its estimate range .

The company's adjusted earnings per share were $0.69, beating analysts' expectations by $0.03. However, revenue fell short of consensus estimates, coming in at $1.32 billion versus expectations of $1.37 billion.

Silgan's net sales fell 7% from $1.42 billion to $1.32 billion compared with the same period last year. The decline was primarily attributable to lower sales and the pass-through of lower raw material costs. The company also experienced a decline in net income, which was $55.2 million, or $0.52 per diluted share, down from $72 million, or $0.65 per diluted share, the previous year.

Silgan President and CEO Adam Greenlee said he was confident in the company's performance despite the decline in revenue. “Our global dispensing business will grow through market-leading innovation and strong end market demand,” Greenlee said. He also pointed to the resilience of consumer demand for food and beverage products and the growth in custom container volume. Continuous improvement.

Silgan has confirmed full-year 2024 adjusted earnings per share forecast of $3.55 to $3.75, a 7% increase from 2023 adjusted net income per diluted share of $3.40. . The company expects sales in all segments to exceed 2023 levels and expects free cash flow this year to be approximately $375 million, up from $356.7 million in 2023.

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Looking ahead to the second quarter of 2024, Silgan expects volume growth in its dispensing and specialty closure segments to be in the low to mid-single digits, in its custom containers segment to be in the low single digits, and in its metal container segment to be up. with the previous year. The company expects second-quarter adjusted earnings per share to be in the range of $0.82 to $0.92, which would represent a mid-point increase of 5% compared with $0.83 in the second quarter of 2023.

Silgan's commitment to shareholder value is underscored by its multi-year $50 million cost reduction plan, which is expected to achieve $20 million in savings by 2024.

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