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Dec 31, 2019
Silgan Q4 2019 Earnings Report
Silgan's Q4 2019 earnings decreased compared to Q4 2018, with net income at $34.8 million, or $0.31 per diluted share.
Key Takeaways
Silgan Holdings Inc. reported a decrease in net sales for the fourth quarter of 2019, with net income at $34.8 million, or $0.31 per diluted share, compared to $38.2 million, or $0.34 per diluted share, for the fourth quarter of 2018. Adjusted net income per diluted share for both Q4 2019 and Q4 2018 was $0.38. The decrease in net sales was primarily due to lower volumes in the metal container and closures businesses.
Net income for Q4 2019 was $34.8 million, or $0.31 per diluted share, compared to $38.2 million, or $0.34 per diluted share in Q4 2018.
Adjusted net income per diluted share for Q4 2019 was $0.38, the same as in Q4 2018.
Net sales for Q4 2019 decreased by 2.1% to $1.05 billion compared to $1.07 billion in Q4 2018.
The company anticipates earnings growth in 2020.
Silgan
Silgan
Silgan Revenue by Segment
Revenue by Segment
Dispensing & Specialty Closures Revenue
CapyFin.comMetal Containers Revenue
CapyFin.comCustom Containers Revenue
CapyFin.com Forward Guidance
The Company currently estimates that its adjusted net income per diluted share for the full year 2020 will be in the range of $2.28 to $2.38, an eight percent increase at the midpoint of the range over record adjusted net income per diluted share for the full year of 2019 of $2.16.
Positive Outlook
- Higher pension income
- Continued manufacturing efficiencies across all businesses
- Higher unit volumes in the metal container and closures businesses
- Lower interest costs
- Unit volumes in the metal container and closures businesses are expected to increase as compared to the prior year due in part to the unfavorable impact in the first quarter of the prior year from pre-buy activities by customers in the fourth quarter of 2018
Challenges Ahead
- Impact related to the renewal of certain significant customer contracts in the metal container business
- The prior year favorable impact from the lagged pass through to customers of lower resin costs in the closures business which is not expected to recur in the first quarter of 2020
- A higher income tax rate
- Net sales in the metal container business are expected to decrease in 2020 as compared to 2019 primarily due to the pass through of anticipated lower raw material costs and the anticipated impact related to the renewal of certain significant customer contracts
- Net sales in the closures business are expected to decrease in 2020 as compared to 2019 primarily as a result of the pass through of anticipated lower raw material costs
Revenue & Expenses
Visualization of income flow from segment revenue to net income