Silgan Holdings Inc. (SLGN) Bundle
A Brief History of Silgan Holdings Inc.
Company Overview
Silgan Holdings Inc. (NYSE: SLGN) is a leading supplier of rigid packaging solutions for essential consumer goods. The company operates 124 manufacturing facilities across North and South America, Europe, and Asia. In 2023, Silgan reported annual net sales of approximately $6.0 billion.
Recent Financial Performance
As of the third quarter of 2024, Silgan reported net sales of $1.75 billion, a decrease of $58.0 million or 3% compared to the third quarter of 2023. The decline was primarily due to the contractual pass-through of lower raw material costs, particularly in the Metal Containers segment.
| Financial Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Sales | $1.75 billion | $1.80 billion | -$58.0 million |
| Net Income | $100.1 million | $110.6 million | -$10.5 million |
| Earnings Per Share (EPS) | $0.93 | $1.02 | -$0.09 |
| Adjusted EPS | $1.21 | $1.16 | +$0.05 |
Segment Performance
In the third quarter of 2024, Silgan's segment results were as follows:
| Segment | Net Sales (Q3 2024) | Net Sales (Q3 2023) | Adjusted EBIT (Q3 2024) | Adjusted EBIT (Q3 2023) |
|---|---|---|---|---|
| Dispensing and Specialty Closures | $563.7 million | $559.1 million | $95.2 million | $93.8 million |
| Metal Containers | $1.02 billion | $1.09 billion | $97.1 million | $113.5 million |
| Custom Containers | $158.8 million | $149.4 million | $20.0 million | $11.8 million |
Cash Flow and Debt Management
For the nine months ended September 30, 2024, the cash flows provided by operating activities were reported at -$213.9 million, down from -$596.0 million in the same period of 2023. The company anticipates interest and other debt expenses for 2024 to be approximately $170 million.
| Cash Flow Metrics | 2024 | 2023 |
|---|---|---|
| Operating Cash Flow | -$213.9 million | -$596.0 million |
| Capital Expenditures | $192.0 million | $173.5 million |
| Free Cash Flow Estimate | $375 million | $356.7 million |
Outlook for 2024
Silgan has narrowed its estimate of adjusted net income per diluted share for the full year of 2024 to a range of $3.55 to $3.65, which represents a 6% increase at the midpoint compared to $3.40 in 2023. The company expects low single-digit volume growth in the Dispensing and Specialty Closures and Custom Containers segments, while Metal Containers volumes are anticipated to be comparable to prior year levels.
The effective tax rate for 2024 is estimated to be between 23% and 24%.
A Who Owns Silgan Holdings Inc. (SLGN)
Major Shareholders
As of 2024, the ownership structure of Silgan Holdings Inc. (SLGN) is composed of various institutional and individual investors. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Number of Shares Owned |
|---|---|---|
| BlackRock, Inc. | 15.2% | 16.2 million |
| The Vanguard Group, Inc. | 10.5% | 11.2 million |
| Wellington Management Group LLP | 7.8% | 8.3 million |
| State Street Corporation | 5.9% | 6.3 million |
| Other Institutional Investors | 25.4% | 27.0 million |
| Insider Holdings | 3.2% | 3.4 million |
| Public Float | 31.0% | 33.0 million |
Recent Acquisitions and Changes in Ownership
In 2024, Silgan Holdings completed the acquisition of Weener Packaging, which is expected to influence ownership dynamics and shareholder value. This acquisition is part of Silgan’s strategy to expand its market presence and operational capabilities.
Stock Performance and Market Capitalization
As of the end of Q3 2024, Silgan Holdings has a market capitalization of approximately $2.1 billion. The stock has shown a year-to-date performance increase of around 12%, reflecting a positive sentiment among investors.
Key Financial Metrics
The following table provides key financial metrics relevant to understanding the ownership implications and overall health of Silgan Holdings:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Sales | $1.75 billion | $1.80 billion |
| Net Income | $100.1 million | $110.6 million |
| Earnings per Share (EPS) | $0.93 | $1.02 |
| Free Cash Flow | $375 million (2024 estimate) | $356.7 million (2023) |
| Debt to Equity Ratio | 1.85 | 2.36 |
Conclusion on Ownership Structure
The ownership of Silgan Holdings Inc. is characterized by a mix of institutional investors, insider holdings, and a significant public float. The recent acquisition of Weener Packaging may further influence the company's market position and investor sentiment moving forward.
Silgan Holdings Inc. (SLGN) Mission Statement
Silgan Holdings Inc. is a leading supplier of sustainable rigid packaging solutions for essential consumer goods products. The company's mission emphasizes innovation, quality, and sustainability, aiming to provide superior packaging solutions that meet the evolving needs of its customers across various industries.
Financial Performance Overview
As of the third quarter of 2024, Silgan Holdings reported:
- Net sales of $1.75 billion, a decrease of $58 million or 3% compared to $1.80 billion in the same period in 2023.
- Net income of $100.1 million, or $0.93 per diluted share, compared to $110.6 million, or $1.02 per diluted share in Q3 2023.
- Adjusted net income per diluted share was $1.21, reflecting an increase from $1.16 in Q3 2023.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Sales | $1.75 billion | $1.80 billion |
| Net Income | $100.1 million | $110.6 million |
| EPS (Diluted) | $0.93 | $1.02 |
| Adjusted EPS | $1.21 | $1.16 |
Segment Performance
Silgan operates through three primary segments: Dispensing and Specialty Closures, Metal Containers, and Custom Containers. The performance of each segment for Q3 2024 is as follows:
| Segment | Net Sales (Q3 2024) | Net Sales (Q3 2023) | Adjusted EBIT (Q3 2024) | Adjusted EBIT (Q3 2023) |
|---|---|---|---|---|
| Dispensing and Specialty Closures | $563.7 million | $559.1 million | $95.2 million | $93.8 million |
| Metal Containers | $1.02 billion | $1.09 billion | $97.1 million | $113.5 million |
| Custom Containers | $158.8 million | $149.4 million | $20.0 million | $11.8 million |
Capital Expenditures and Free Cash Flow
In 2024, Silgan anticipates the following financial metrics:
- Capital expenditures of approximately $255 million.
- Free cash flow expected to be around $375 million, compared to $356.7 million in 2023.
Debt and Tax Rates
For 2024, Silgan projects:
- Interest and other debt expenses of approximately $170 million.
- An effective tax rate of approximately 23% to 24%.
Conclusion on Strategic Growth
Silgan's mission is supported by its strategic objectives which focus on organic growth and margin improvement. The company is well-positioned for significant earnings growth, particularly following the recent acquisition of Weener Packaging, which is expected to enhance operational capabilities and market reach.
How Silgan Holdings Inc. (SLGN) Works
Overview of Silgan Holdings Inc.
Silgan Holdings Inc. is a leading supplier of sustainable rigid packaging solutions for essential consumer goods. The company operates 124 manufacturing facilities across North and South America, Europe, and Asia. In 2023, Silgan reported annual net sales of approximately $6.0 billion.
Financial Performance in 2024
For the third quarter of 2024, Silgan reported net sales of $1.75 billion, a decrease of $58 million, or 3%, compared to the same period in 2023. The decline in sales was primarily due to the contractual pass-through of lower raw material costs.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Sales | $1.75 billion | $1.80 billion | -3% |
| Net Income | $100.1 million | $110.6 million | -9% |
| Diluted EPS | $0.93 | $1.02 | -9% |
| Adjusted Net Income per Diluted Share | $1.21 | $1.16 | +4% |
Segment Performance
Silgan operates through three main segments: Dispensing and Specialty Closures, Metal Containers, and Custom Containers. Each segment has shown varied performance in terms of net sales and adjusted EBIT.
| Segment | Q3 2024 Net Sales | Q3 2023 Net Sales | Change (%) | Q3 2024 Adjusted EBIT | Q3 2023 Adjusted EBIT | Change (%) |
|---|---|---|---|---|---|---|
| Dispensing and Specialty Closures | $563.7 million | $559.1 million | +1% | $95.2 million | $93.8 million | +1.5% |
| Metal Containers | $1.02 billion | $1.09 billion | -7% | $97.1 million | $113.5 million | -14.4% |
| Custom Containers | $158.8 million | $149.4 million | +6% | $20.0 million | $11.8 million | +69.5% |
Operational Highlights
In 2024, Silgan completed the acquisition of Weener Packaging, which is expected to enhance its product offerings and market reach. The company continues to deliver double-digit growth in its dispensing products segment, driven by strong demand and innovation.
Cash Flow and Capital Expenditures
For the nine months ended September 30, 2024, Silgan reported net cash used in operating activities of $(213.9) million, down from $(596.0) million in the prior year. Capital expenditures for 2024 are expected to be approximately $255 million.
| Cash Flow Metric | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Net Cash Used in Operating Activities | $(213.9) million | $(596.0) million |
| Capital Expenditures | $255 million (est.) | Not specified |
Debt and Equity Position
As of September 30, 2024, Silgan's total liabilities amounted to $5.693 billion, with current and long-term debt of $3.808 billion. The company reported stockholders' equity of $2.054 billion.
| Balance Sheet Metric | Q3 2024 |
|---|---|
| Total Assets | $7.747 billion |
| Total Liabilities | $5.693 billion |
| Current and Long-term Debt | $3.808 billion |
| Stockholders' Equity | $2.054 billion |
Market Outlook
Silgan anticipates low single-digit volume growth across its Dispensing and Specialty Closures and Custom Containers segments for the fourth quarter of 2024. The company projects adjusted net income per diluted share for the fourth quarter to be in the range of $0.78 to $0.88.
How Silgan Holdings Inc. (SLGN) Makes Money
Business Segments
Silgan Holdings operates through three primary business segments: Dispensing and Specialty Closures, Metal Containers, and Custom Containers. Each segment contributes significantly to the company's overall revenue.
Dispensing and Specialty Closures
In the third quarter of 2024, net sales for this segment were $563.7 million, an increase of $4.6 million or 1% compared to the same quarter in 2023. The growth was attributed to a higher volume/mix of 2% and record volume in dispensing products, despite a 1% impact from lower raw material costs.
Adjusted EBIT for this segment reached $95.2 million, an increase of $1.4 million from the prior year.
Metal Containers
This segment reported net sales of $1.02 billion in the third quarter of 2024, a decrease of $72.0 million or 7% compared to the same period in 2023. The volume increased 2%, driven by high single-digit growth in the pet food market, although this was offset by weaker volumes in the fruit and vegetable markets.
Adjusted EBIT for the Metal Containers segment was $97.1 million, down $16.4 million from $113.5 million in the third quarter of 2023.
Custom Containers
Net sales for Custom Containers were $158.8 million, up $9.4 million or 6% compared to the previous year. This growth was primarily due to a 5% increase in volume attributed to new business awards.
Adjusted EBIT for this segment increased to $20.0 million, up $8.2 million from $11.8 million in the third quarter of 2023.
Financial Performance Overview
For the third quarter of 2024, Silgan Holdings reported consolidated net sales of $1.75 billion, down 3% from $1.80 billion in the prior year. The decline was mainly due to the contractual pass-through of lower raw material costs.
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Sales (Total) | $1.75 billion | $1.80 billion | -3% |
| Net Income | $100.1 million | $110.6 million | -9% |
| Adjusted Net Income per Share | $1.21 | $1.16 | +4% |
| EBIT | $167.3 million | $194.1 million | -14% |
Cost Structure and Expenses
In Q3 2024, Silgan's cost of goods sold was $1.45 billion, resulting in a gross profit of $293.3 million. Selling, general, and administrative expenses were $106.4 million, compared to $84.3 million in the prior year, indicating an increase due to higher operational costs.
Future Outlook
For the full year 2024, Silgan anticipates adjusted net income per diluted share to be in the range of $3.55 to $3.65, reflecting a projected 6% increase at the midpoint compared to $3.40 in 2023. The company expects to generate free cash flow of approximately $375 million.
Debt and Interest Expenses
Interest and other debt expenses for Q3 2024 were $41.9 million, a decrease of $5.4 million compared to the previous year. The effective tax rate was 20.2% for Q3 2024, favorably impacted by the reversal of tax reserves.
Conclusion
Silgan Holdings continues to adapt to market changes and manage costs effectively, while pursuing growth through strategic acquisitions and operational improvements.
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Article updated on 8 Nov 2024
Resources:
- Silgan Holdings Inc. (SLGN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Silgan Holdings Inc. (SLGN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Silgan Holdings Inc. (SLGN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.