Silgan Holdings report record Q2 net income

Silgan Holdings

Silgan Holdings Inc, a leading supplier of sustainable rigid packaging solutions for consumer goods products, reported record second quarter 2021 net income of $94.5 million, or $0.85 per diluted share.

This was compared to second quarter 2020 net income of $78.2 million, or $0.70 per diluted share.

Adjusted net income per diluted share for the second quarter of 2021 was $0.85. Adjusted net income per diluted share for the second quarter of 2020 was also $0.85, after adjustments increasing net income per diluted share by $0.15. 

“We are very pleased to have maintained exceptionally strong performance levels in the second quarter of 2021, delivering earnings of $0.85 per diluted share which matches the unprecedented pandemic driven second quarter 2020 results,” said Tony Allott, Chairman and CEO. 

“Our Dispensing and Specialty Closures segment continued to benefit from strengthening beauty and fragrance markets and the inclusion of the Albéa operations.

“This continued volume growth along with great operating performance more than offset the significant unfavourable impact of unprecedented spikes in raw material costs and the contractual lags in passing these on to customers. 

“Our Metal Container segment continued to experience sustained strong demand levels but was challenged by lower inventory levels to meet this demand, largely as a result of unacceptable steel supply performance, and by tight labor markets across the supply chain. 

“Our Custom Container segment once again delivered improved profitability primarily on the strength of its product mix and operating performance, despite the anticipated decline in volumes and the impact of significant raw material inflation.

“While the raw material and labor supply challenges are real across all of our operating segments and will continue to have a negative impact on the rest of the year, given other areas of strong performance we are holding our estimate of full year 2021 adjusted earnings per diluted share in a range of $3.30 to $3.45, which represents a 10.3 percent increase at the midpoint over record 2020 levels.”

Income before interest and income taxes for the second quarter of 2021 was a record $153.0 million, an increase of $21.8 million, or 16.6%, as compared to $131.2 million for the second quarter of 2020, and margins increased to 11.3% from 11.2% for the same periods. 

The increase in income before interest and income taxes was the result of higher income in the Dispensing and Specialty Closures and Custom Container segments, lower corporate expenses primarily related to prior year costs of $16.1 million for announced acquisitions and lower rationalisation charges, partially offset by lower income in the Metal Container segment. 

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