Silgan Beats Earnings and Raises Guidance

Silgan Holdings (SLGN) reported Q1 earnings of 57 cents per share this morning. Wall Street had been expecting 49 cents per share. Net sales rose 0.3% to $1.03 billion.

For Q2, Silgan sees earnings between 55 and 70 cents per share. For the whole year, Silgan estimates earnings will range between $2.30 and $2.50 per share. That’s an increase from the previous range of $2.28 to $2.38 per share.

CEO Tony Allott noted that Silgan has been declared “essential” by many government agencies.

“Volumes grew at their strongest rate in March, as the coronavirus began impacting our Western markets. In our metal container business, volumes were up 8 percent in the quarter and, combined with strong operating results, drove record first quarter operating income. In our closures business, volumes grew by 5 percent, with a less favorable mix of products sold as growth in lower margin pumps for soaps and sanitizers were offset by declines in more complex sprayers and pumps for beauty products. Our plastic container business had another record performance with volume growth of 6 percent over the prior year quarter and continued strong operating results.

In February, the company raised its dividend by 9%. Silgan has raised its dividend every year for the last 16 years in a row.

Posted by on April 22nd, 2020 at 8:48 am


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