Highlights
- Completed acquisition of Weener Packaging
- Achieved record Dispensing and Specialty Closures segment
Adjusted EBIT
- Delivered three consecutive quarters of double digit volume
growth in dispensing products
- Delivered double digit growth in Metal Containers for pet food
markets in the fourth quarter
- Exceeded free cash flow estimate through improved working
capital with restructuring program
- Anticipates double digit percentage earnings and free cash flow
growth in 2025
Silgan Holdings Inc. (NYSE: SLGN), a leading supplier of
sustainable rigid packaging solutions for the world's essential
consumer goods products, today reported full year 2024 net sales of
$5.9 billion and net income of $276.4 million, or $2.58 per diluted
share, as compared to full year 2023 net sales of $6.0 billion and
net income of $326.0 million, or $2.98 per diluted share. For the
fourth quarter of 2024, Silgan reported net income of $45.1
million, or $0.42 per diluted share, as compared to $64.4 million,
or $0.60 per diluted share, in the fourth quarter of 2023.
Adjusted net income per diluted share for the full year of 2024
was $3.62, after adjustments increasing net income per diluted
share by $1.04, a 6% increase over adjusted net income per diluted
share for the full year of 2023 of $3.40 after adjustments
increasing net income per diluted share by $0.42. Adjusted net
income per diluted share for the fourth quarter of 2024 was a
record $0.85 after adjustments increasing net income per diluted
share by $0.43, a 35% increase over adjusted net income per diluted
share in the fourth quarter of 2023 of $0.63 after adjustments
increasing net income per diluted share by $0.03. A reconciliation
of net income per diluted share to "adjusted net income per diluted
share," a Non-GAAP financial measure used by the Company that
adjusts net income per diluted share for certain items, can be
found in Table A at the back of this press release.
"The Silgan team delivered another year of strong results, with
record fourth quarter adjusted EPS and Adjusted EBIT and double
digit free cash flow growth, and made significant progress on
several important long-term strategic objectives that will benefit
our Company in 2025 and beyond. We expanded our market leading
dispensing business with the acquisition of Weener Packaging,
extended our decades long partnership with our largest customer
with another long-term contract extension, and delivered meaningful
organic growth. The success of our winning strategy, the power of
our portfolio, and the strength of our team continue to create
value for our shareholders and position the Company for continued
success well beyond 2025," said Adam Greenlee, President and
CEO.
"Our Dispensing and Specialty Closures business continues to
perform exceptionally well and achieved record full year and fourth
quarter Adjusted EBIT and the third consecutive quarter of
double-digit organic volume growth in dispensing products during
the fourth quarter. Our commercial focus, technological innovation,
and the breadth and depth of our expanding product portfolio
continue to drive incremental opportunities in new and existing
dispensing end markets. Our Metal Containers business showed
improving momentum in our strategic focus areas with double-digit
volume growth in pet food and strong progress on our cost reduction
efforts during the fourth quarter. Our Custom Containers business
continued to deliver commercial success, as end market demand
improved and our business benefited from the commercialization of
new business awards, incremental new business wins, and strong
operating performance," continued Mr. Greenlee.
"Earlier this week, we announced that Philippe Chevrier will
join our team as Executive Vice President and Chief Operating
Officer. Philippe will join our Executive Office in Stamford and
will fully participate in the collaborative management process that
has proven to be so successful since the founding of our Company.
We continue to seek new opportunities to apply our unique business
model to achieve our strategic initiatives and create value through
our efficient and disciplined capital deployment model and the
continued expansion of our long-term partnerships with our
customers and by driving organic growth in each of our businesses.
We are excited about the opportunities in 2025 and beyond, and with
the actions we have taken the Company is well positioned to achieve
another year of double digit percentage earnings and free cash flow
growth this year," concluded Mr. Greenlee.
Fourth Quarter Results
Net sales for the fourth quarter of 2024 were $1.4 billion, an
increase of $71.1 million, or 5%, as compared to the same period in
the prior year. Fourth quarter 2024 net sales increased
predominantly as a result of the acquisition of Weener Packaging in
the Dispensing and Specialty Closures segment, partially offset by
less favorable mix in the Metal Containers segment.
Income before interest and income taxes (EBIT) for the fourth
quarter of 2024 was $94.2 million, a decrease of $31.9 million as
compared to $126.1 million for the fourth quarter of 2023. EBIT in
the Dispensing and Specialty Closures, Metal Containers and Custom
Containers segments were $76.7 million, $41.6 million, and ($0.1)
million, respectively, in the fourth quarter of 2024.
Rationalization charges (credits) were $21.4 million and ($4.8)
million in the fourth quarters of 2024 and 2023, respectively.
Rationalization charges were higher in the current year period due
to the announced restructuring program, while the prior year period
included a favorable adjustment to the non-cash write-down of
assets in Russia. Costs attributed to announced acquisitions were
$15.7 million in the fourth quarter of 2024. A reconciliation of
EBIT for each segment to Adjusted EBIT, a Non-GAAP financial
measure used by the Company that adjusts EBIT for certain items,
can be found in Table B at the back of this press release.
Interest and other debt expense before loss on early
extinguishment of debt for the fourth quarter of 2024 was $44.5
million, an increase of $2.0 million as compared to the fourth
quarter of 2023 primarily due to higher borrowings related to the
acquisition of Weener Packaging, partially offset by lower weighted
average interest rates in the current year quarter.
The effective tax rates were 8.8% and 23.0% for the fourth
quarters of 2024 and 2023, respectively. The effective tax rate in
the fourth quarter of 2024 benefited primarily from tax
restructuring activities in our foreign operations.
Fourth Quarter Segment Results
Dispensing and Specialty Closures
Net sales of the Dispensing and Specialty Closures segment were
$639.4 million in the fourth quarter of 2024, an increase of $117.1
million, or 22%, as compared to $522.3 million in the fourth
quarter of 2023. The increase in net sales from the prior year
quarter was a result of the contribution of Weener Packaging of
approximately 19% and higher organic volume/mix of 5%, with double
digit improvement and record volumes in dispensing products. These
benefits were partly offset by unfavorable foreign currency
translation of approximately 2%.
Dispensing and Specialty Closures Adjusted EBIT increased $12.9
million to a record of $99.9 million in the fourth quarter of 2024
as compared to $87.0 million in the fourth quarter of 2023. The
increase in Adjusted EBIT was driven primarily by the Weener
Packaging acquisition which contributed $11.1 million in Adjusted
EBIT. Late in the quarter, as part of its restructuring program the
business took the opportunity to reduce inventories to more optimal
levels, which negatively impacted Dispensing and Specialty Closures
Adjusted EBIT by approximately $10 million relative to the
Company's expectations entering the quarter and resulted in the
Company exceeding its estimate of free cash flow for the year.
Metal Containers
Net sales of the Metal Containers segment were $610.2 million in
the fourth quarter of 2024, a decrease of $55.1 million, or 8%, as
compared to $665.3 million in the fourth quarter of 2023. Metal
containers volume was comparable to the prior year quarter, with
double digit growth for pet food markets offset largely by
anticipated lower volumes for fruit and vegetable markets due to
severe weather in 2024 that prematurely ended the fruit and
vegetable packs and the planned reduction in volumes by a large
pack customer to reduce its working capital. The decrease in net
sales from the prior year quarter was primarily driven by
unfavorable price/mix as a result of less favorable mix.
Metal Containers Adjusted EBIT increased $1.1 million to $41.9
million in the fourth quarter of 2024 as compared to $40.8 million
in the fourth quarter of 2023. The increase in Adjusted EBIT in the
quarter was primarily the result of favorable price/cost and mix
which included SG&A cost management.
Custom Containers
Net sales of the Custom Containers segment were $161.6 million
in the fourth quarter of 2024, an increase of $9.1 million, or 6%,
as compared to $152.5 million in the fourth quarter of 2023. This
increase was primarily the result of higher volumes of 4%, largely
due to the commercialization of new business awards, and more
favorable price/mix.
Custom Containers Adjusted EBIT increased $5.2 million to $18.2
million in the fourth quarter of 2024 as compared to $13.0 million
in the fourth quarter of 2023. The increase in Adjusted EBIT was
primarily the result of more favorable price/cost including mix,
largely due to an improved mix of products sold, and higher
volumes.
Full Year Results
Net sales for 2024 were $5.9 billion, a decrease of $133.5
million, or 2%, as compared to $6.0 billion in the prior year
primarily as a result of the contractual pass through of lower raw
material costs in the Metal Containers segment.
Income before interest and income taxes (EBIT) for 2024 was
$515.1 million, a decrease of $80.3 million as compared to $595.4
million for 2023. EBIT in the Dispensing and Specialty Closures,
Metal Containers and Custom Containers segments were $290.0
million, $228.9 million, and $55.4 million, respectively, in 2024.
Rationalization charges were $59.5 million and $8.4 million in 2024
and 2023, respectively. Rationalization charges were higher in the
current year period due to the announced restructuring program.
Costs attributed to announced acquisitions were $28.4 million in
2024. A reconciliation of EBIT for each segment to Adjusted EBIT, a
Non-GAAP financial measure used by the Company that adjusts EBIT
for certain items, can be found in Table B at the back of this
press release.
Interest and other debt expense before loss on early
extinguishment of debt for 2024 was $166.3 million, a decrease of
$7.0 million as compared to 2023 primarily due to lower average
borrowings and lower weighted average interest rates.
The effective tax rates were 20.7% and 22.8% for 2024 and 2023,
respectively. The effective tax rate for 2024 benefited primarily
from tax restructuring activities in our foreign operations and the
reversal of tax reserves due to the expiration of statute of
limitations. The effective tax rate for 2023 benefited primarily
from the reversal of tax reserves from a historical
acquisition.
The Company reported net cash provided by operating activities
of $721.9 million in 2024 as compared to $482.6 million in 2023.
Free cash flow for 2024 was $391.3 million, a 10% increase as
compared to $356.7 million in 2023. The increase in free cash flow
was due primarily to improved working capital, partially due to the
reduction in inventory in the Dispensing and Specialty Closures
segment, and higher adjusted earnings. The Company is providing a
reconciliation in Table D of this press release of net cash
provided by operating activities to “free cash flow,” a Non-GAAP
financial measure used by the Company which adjusts net cash
provided by operating activities for certain items.
Full Year Segment Results
Dispensing and Specialty Closures
Net sales of the Dispensing and Specialty Closures segment were
$2.3 billion in 2024, an increase of $83.0 million, or 4%, as
compared to $2.2 billion in 2023 primarily as a result of the
acquisition of Weener Packaging in the fourth quarter of 2024. High
single digit organic volume growth in dispensing products was
partially offset by lower volumes in specialty closures for food
and beverage end markets, mostly as a result of the destocking
activities of customers in the food and beverage markets in the
first half of 2024.
Dispensing and Specialty Closures Adjusted EBIT increased $25.0
million to a record $365.6 million in 2024 as compared to $340.6
million in 2023. The increase in Adjusted EBIT was driven primarily
by favorable price/cost, mostly due to operational improvements in
2024 and the inclusion of the results of Weener Packaging in the
fourth quarter of 2024.
Metal Containers
Net sales of the Metal Containers segment were $2.9 billion in
2024, a decrease of $240.1 million, or 8%, as compared to $3.1
billion in 2023. This decrease was driven by lower price/mix of 7%
as a result of the contractual pass through of lower raw material
costs and less favorable mix due to higher volumes of smaller
containers for pet food markets and lower volumes of larger
containers for fruit and vegetable markets. The decrease in volume
for fruit and vegetable markets was driven by both the planned
reduction in volumes by a large pack customer to reduce its working
capital and severe weather in 2024 that prematurely ended the fruit
and vegetable packs during the third quarter.
Metal Containers Adjusted EBIT decreased by $40.0 million to
$242.4 million in 2024 as compared to a record $282.4 million in
2023. Adjusted EBIT decreased as a result of unfavorable price/cost
including mix predominantly due to lower fixed cost absorption and
less favorable mix as a result of lower volumes for fruit and
vegetable markets.
Custom Containers
Net sales of the Custom Containers segment were $649.6 million
in 2024, an increase of $23.6 million, or 4%, as compared to $626.0
million in 2023. This increase was primarily the result of higher
volumes of 3% largely due to the commercialization of new business
awards, as well as higher price/mix of 1% due to a more favorable
mix of products sold.
Custom Containers Adjusted EBIT increased $17.7 million to $81.0
million in 2024 as compared to $63.3 million in 2023. The increase
in Adjusted EBIT was primarily the result of improved price/cost
including mix due to a more favorable mix of products sold,
improved operating efficiencies, and higher volumes.
Outlook for 2025
The Company currently estimates adjusted net income per diluted
share for the full year of 2025 will be in the range of $4.00 to
$4.20, a 13% increase at the midpoint of the range over adjusted
net income per diluted share of $3.62 in 2024. Volumes and Adjusted
EBIT in all segments for 2025 are expected to be higher than 2024
levels. Adjusted net income per diluted share excludes certain
items as outlined in Table C at the back of this press release.
The Company anticipates interest and other debt expense in 2025
of approximately $185 million and an effective tax rate for 2025 of
approximately 24%.
The Company currently estimates that free cash flow in 2025 will
be approximately $450 million, a 15% increase as compared to $391.3
million in 2024. Capital expenditures are expected to increase to
approximately $300 million in 2025 as compared to $262.8 million in
2024 primarily as a result of the Weener Packaging acquisition.
For the first quarter of 2025, the Company expects low to mid
single digit organic volume increases and higher Adjusted EBIT in
all segments. The Company is providing an estimate of adjusted net
income per diluted share for the first quarter of 2025 in the range
of $0.74 to $0.84, a 14% increase at the midpoint as compared to
$0.69 in the first quarter of 2024. Adjusted net income per diluted
share excludes certain items as outlined in Table C at the back of
this press release.
Conference Call
Silgan Holdings Inc. will hold a conference call to discuss the
Company’s results for the fourth quarter and full year of 2024 at
11:00 a.m. eastern time on Wednesday, January 29, 2025. The
conference call audio will be webcast live, and both the webcast
and this press release can be accessed at www.silganholdings.com.
Those who wish to participate in the conference call via
teleconference from the U.S. and Canada should dial (877) 400-0505
and from outside the U.S. and Canada should dial (773) 305-6865.
The confirmation code for the conference call is 9183531. The audio
webcast can be accessed at www.silganholdings.com and will be
available for 90 days thereafter for those who are unable to listen
to the live call.
* * *
Silgan is a leading supplier of sustainable rigid packaging
solutions for the world's essential consumer goods products with
annual net sales of approximately $5.9 billion in 2024. Silgan
operates 124 manufacturing facilities in North and South America,
Europe and Asia. The Company is a leading worldwide supplier of
dispensing and specialty closures for fragrance and beauty, food,
beverage, personal and health care, home care and lawn and garden
products. The Company is also a leading supplier of metal
containers in North America and Europe for pet and human food and
general line products. In addition, the Company is a leading
supplier of custom containers for shelf-stable food and personal
care products in North America.
Statements included in this press release which are not
historical facts are forward looking statements made pursuant to
the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995 and the Securities Exchange Act of 1934, as
amended. Such forward looking statements are made based upon
management’s expectations and beliefs concerning future events
impacting the Company and therefore involve a number of
uncertainties and risks, including, but not limited to, those
described in the Company’s Annual Report on Form 10-K for 2023 and
other filings with the Securities and Exchange Commission.
Therefore, the actual results of operations or financial condition
of the Company could differ materially from those expressed or
implied in such forward looking statements.
SILGAN HOLDINGS INC.
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME
(UNAUDITED)
For the quarter and year ended
December 31,
(Dollars and shares in millions,
except per share amounts)
Fourth
Quarter
Year
Ended
2024
2023
2024
2023
Net sales
$
1,411.2
$
1,340.1
$
5,854.7
$
5,988.2
Cost of goods sold
1,172.2
1,121.6
4,842.9
4,995.6
Gross profit
239.0
218.5
1,011.8
992.6
Selling, general and administrative
expenses
123.6
96.5
438.1
384.4
Rationalization charges (credits)
21.4
(4.8
)
59.5
8.4
Other pension and postretirement (income)
expense
(0.2
)
0.7
(0.9
)
4.4
Income before interest and income
taxes
94.2
126.1
515.1
595.4
Interest and other debt expense before
loss on early extinguishment of debt
44.5
42.5
166.3
173.3
Loss on early extinguishment of debt
1.1
—
1.1
—
Interest and other debt expense
45.6
42.5
167.4
173.3
Income before income taxes
48.6
83.6
347.7
422.1
Provision for income taxes
4.2
19.2
72.0
96.1
Income before equity in earnings of
affiliates
44.4
64.4
275.7
326.0
Equity in earnings of affiliates, net of
tax
0.7
—
0.7
—
Net income
$
45.1
$
64.4
$
276.4
$
326.0
Earnings per share (EPS):
Basic net income per share
$
0.42
$
0.60
$
2.59
$
3.00
Diluted net income per share
$
0.42
$
0.60
$
2.58
$
2.98
Cash dividends per common share
$
0.19
$
0.18
$
0.76
$
0.72
Weighted average shares:
Basic
106.8
106.6
106.8
108.8
Diluted
107.3
106.9
107.1
109.2
SILGAN HOLDINGS INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(UNAUDITED)
(Dollars in millions)
Dec. 31,
Dec. 31,
2024
2023
Assets:
Cash and cash equivalents
$
822.9
$
642.9
Trade accounts receivable, net
594.2
599.5
Inventories
928.1
940.8
Other current assets
177.5
165.7
Property, plant and equipment, net
2,282.9
1,961.6
Other assets, net
3,779.0
3,300.7
Total assets
$
8,584.6
$
7,611.2
Liabilities and stockholders' equity:
Current liabilities, excluding debt
$
1,531.0
$
1,431.4
Current and long-term debt
4,136.8
3,426.8
Other liabilities
927.6
863.6
Stockholders' equity
1,989.2
1,889.4
Total liabilities and stockholders'
equity
$
8,584.6
$
7,611.2
SILGAN HOLDINGS INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(UNAUDITED)
For the year ended December
31,
(Dollars in millions)
2024
2023
Cash flows provided by (used in) operating
activities:
Net income
$
276.4
$
326.0
Adjustments to reconcile net income to net
cash provided by (used in) operating activities:
Depreciation and amortization
275.9
263.2
Amortization of debt discount and debt
issuance costs
5.5
5.4
Rationalization charges
59.5
8.4
Loss on early extinguishment of debt
1.1
—
Stock compensation expense
15.5
15.6
Deferred income tax (benefit)
provision
(33.1
)
33.1
Other changes that provided (used)
cash:
Trade accounts receivable, net
37.4
73.7
Inventories
57.7
(162.3
)
Trade accounts payable and other changes,
net
26.0
(80.5
)
Net cash provided by operating
activities
721.9
482.6
Cash flows provided by (used in) investing
activities:
Purchase of business, net of cash
acquired
(921.6
)
—
Capital expenditures
(262.8
)
(226.8
)
Proceeds from asset sales
7.8
1.8
Other investing activities
0.3
1.2
Net cash (used in) investing
activities
(1,176.3
)
(223.8
)
Cash flows provided by (used in) financing
activities:
Dividends paid on common stock
(82.1
)
(78.9
)
Changes in outstanding checks -
principally vendors
(75.6
)
99.1
Shares repurchased under authorized
repurchase program
—
(174.7
)
Net borrowings and other financing
activities
820.3
(56.9
)
Net cash provided by (used in) financing
activities
662.6
(211.4
)
Effect of exchange rate changes on cash
and cash equivalents
(28.2
)
9.9
Cash and cash equivalents:
Net increase
180.0
57.3
Balance at beginning of year
642.9
585.6
Balance at end of period
$
822.9
$
642.9
SILGAN HOLDINGS INC.
CONSOLIDATED SUPPLEMENTAL
SEGMENT FINANCIAL DATA
(UNAUDITED)
For the quarter and year ended
December 31,
(Dollars in millions)
Fourth
Quarter
Year
Ended
2024
2023
2024
2023
Net sales:
Dispensing and Specialty Closures
$
639.4
$
522.3
$
2,304.4
$
2,221.4
Metal Containers
610.2
665.3
2,900.7
3,140.8
Custom Containers
161.6
152.5
649.6
626.0
Consolidated
$
1,411.2
$
1,340.1
$
5,854.7
$
5,988.2
Income before interest and income taxes
(EBIT)
Dispensing and Specialty Closures
$
76.7
$
68.4
$
290.0
$
281.0
Metal Containers
41.6
55.8
228.9
287.4
Custom Containers
(0.1
)
6.8
55.4
52.8
Corporate
(24.0
)
(4.9
)
(59.2
)
(25.8
)
Consolidated
$
94.2
$
126.1
$
515.1
$
595.4
SILGAN HOLDINGS INC.
RECONCILIATION OF ADJUSTED NET
INCOME PER DILUTED SHARE (1)
(UNAUDITED)
For the quarter and year ended
December 31,
(Dollars and shares in millions,
except per share amounts)
Table
A
Fourth
Quarter
Year
Ended
2024
2023
2024
2023
Net
Diluted
Net
Diluted
Net
Diluted
Net
Diluted
Income
EPS
Income
EPS
Income
EPS
Income
EPS
U.S. GAAP net income and diluted EPS
$
45.1
$
0.42
$
64.4
$
0.60
$
276.4
$
2.58
$
326.0
$
2.98
Adjustments (a)
45.7
0.43
3.2
0.03
111.4
1.04
45.5
0.42
Non-U.S. GAAP adjusted net income and
adjusted diluted EPS
$
90.8
$
0.85
$
67.6
$
0.63
$
387.8
$
3.62
$
371.5
$
3.40
Weighted average number of common shares
outstanding - Diluted
107.3
106.9
107.1
109.2
(a) Adjustments consist of items in the
table below
Fourth
Quarter
Year
Ended
2024
2023
2024
2023
Adjustments:
Acquired intangible asset amortization
expense
$
14.6
$
13.3
$
52.6
$
53.1
Other pension (income) expense for U.S.
pension plans
(1.0
)
1.3
(4.2
)
3.6
Rationalization charges (credits)
21.4
(4.8
)
59.5
8.4
Costs attributed to announced
acquisitions
15.7
—
28.4
—
Purchase accounting write-up of
inventory
6.1
—
6.1
—
Loss on early extinguishment of debt
1.1
—
1.1
—
Pre-tax impact of adjustments
57.9
9.8
143.5
65.1
Tax impact of adjustments
12.2
6.6
32.1
19.6
Net impact of adjustments
$
45.7
$
3.2
$
111.4
$
45.5
Weighted average number of common shares
outstanding - Diluted
107.3
106.9
107.1
109.2
Diluted EPS impact from adjustments
$
0.43
$
0.03
$
1.04
$
0.42
Adjusted tax rate
15.5
%
27.7
%
21.2
%
23.8
%
SILGAN HOLDINGS INC.
RECONCILIATION OF ADJUSTED
EBIT (2)
(UNAUDITED)
For the quarter and year ended
December 31,
(Dollars in millions)
Table
B
Fourth
Quarter
Year
Ended
2024
2023
2024
2023
Dispensing and
Specialty Closures:
Income before interest and income taxes
(EBIT)
$
76.7
$
68.4
$
290.0
$
281.0
Acquired intangible asset amortization
expense
13.1
11.8
46.7
47.2
Other pension (income) expense for U.S.
pension plans
(0.2
)
0.7
(1.0
)
1.1
Equity in earnings of affiliates, net of
tax
0.7
—
0.7
—
Rationalization charges
3.5
6.1
23.1
11.3
Purchase accounting write-up of
inventory
6.1
—
6.1
—
Adjusted EBIT
$
99.9
$
87.0
$
365.6
$
340.6
Metal
Containers:
Income before interest and income taxes
(EBIT)
$
41.6
$
55.8
$
228.9
$
287.4
Acquired intangible asset amortization
expense
0.4
0.4
1.4
1.4
Other pension (income) expense for U.S.
pension plans
(0.6
)
0.4
(2.3
)
1.5
Rationalization charges (credits)
0.5
(15.8
)
14.4
(7.9
)
Adjusted EBIT
$
41.9
$
40.8
$
242.4
$
282.4
Custom
Containers:
Income before interest and income taxes
(EBIT)
$
(0.1
)
$
6.8
$
55.4
$
52.8
Acquired intangible asset amortization
expense
1.1
1.1
4.5
4.5
Other pension (income) expense for U.S.
pension plans
(0.2
)
0.2
(0.9
)
1.0
Rationalization charges
17.4
4.9
22.0
5.0
Adjusted EBIT
$
18.2
$
13.0
$
81.0
$
63.3
Corporate:
(Loss) before interest and income taxes
(EBIT)
$
(24.0
)
$
(4.9
)
$
(59.2
)
$
(25.8
)
Costs attributed to announced
acquisitions
15.7
—
28.4
—
Adjusted EBIT
$
(8.3
)
$
(4.9
)
$
(30.8
)
$
(25.8
)
Total Adjusted EBIT
$
151.7
$
135.9
$
658.2
$
660.5
SILGAN HOLDINGS INC.
RECONCILIATION OF ADJUSTED NET
INCOME PER DILUTED SHARE (1)
(UNAUDITED)
For the quarter and year
ended,
(Dollars and shares in millions,
except per share amounts)
Table
C
First
Quarter,
Year
Ended
March
31,
December
31,
Estimated
Actual
Estimated
Actual
Low
High
Low
High
2025
2025
2024
2025
2025
2024
U.S. GAAP net income as estimated for 2025
and as reported for 2024
$
66.4
$
77.1
$
55.2
$
380.6
$
402.1
$
276.4
Adjustments (a)
13.1
13.1
18.0
49.4
49.4
111.4
Non-U.S. GAAP adjusted net income as
estimated for 2025 and presented for 2024
$
79.5
$
90.2
$
73.2
$
430.0
$
451.5
$
387.8
U.S. GAAP diluted EPS as estimated for
2025 and as reported for 2024
$
0.62
$
0.72
$
0.52
$
3.54
$
3.74
$
2.58
Adjustments (a)
0.12
0.12
0.17
0.46
0.46
1.04
Non-U.S. GAAP adjusted diluted EPS as
estimated for 2025 and presented for 2024
$
0.74
$
0.84
$
0.69
$
4.00
$
4.20
$
3.62
(a) Adjustments consist of items in the
table below
First
Quarter,
Year
Ended
March
31,
December
31,
2025
2024
2025
2024
Estimated
Actual
Estimated
Actual
Adjustments:
Acquired intangible asset amortization
expense
$
15.0
$
13.3
$
59.8
$
52.6
Other pension income for U.S. pension
plans
(0.9
)
(1.2
)
(3.7
)
(4.2
)
Rationalization charges
3.2
11.7
8.9
59.5
Costs attributed to announced
acquisitions
—
—
—
28.4
Purchase accounting write-up of
inventory
—
—
—
6.1
Loss on early extinguishment of debt
—
—
—
1.1
Pre-tax impact of adjustments
17.3
23.8
65.0
143.5
Tax impact of adjustments
4.2
5.8
15.6
32.1
Net impact of adjustments
$
13.1
$
18.0
$
49.4
$
111.4
Weighted average number of common shares
outstanding - Diluted
107.4
107.1
107.5
107.1
Diluted EPS impact from adjustments
$
0.12
$
0.17
$
0.46
$
1.04
SILGAN HOLDINGS INC.
RECONCILIATION OF FREE CASH
FLOW (3)
(UNAUDITED)
For the year ended December
31,
(Dollars and shares in millions,
except per share amounts)
Table
D
2024
2023
Net cash provided by operating
activities
$
721.9
$
482.6
Capital expenditures
(262.8
)
(226.8
)
Proceeds from asset sales
7.8
1.8
Changes in outstanding checks
(75.6
)
99.1
Free cash flow
$
391.3
$
356.7
Net cash provided by operating activities
per diluted share
$
6.74
$
4.42
Free cash flow per diluted share
$
3.65
$
3.27
Weighted average diluted shares
107.1
109.2
(1) The Company has presented adjusted net income per diluted
share for the periods covered by this press release, which measure
is a Non-GAAP financial measure. The Company’s management believes
it is useful to exclude acquired intangible asset amortization
expense, other pension (income) expense for U.S. pension plans,
rationalization charges (credits), costs attributed to announced
acquisitions, the impact from the charge for the write-up of
acquired inventory required under purchase accounting and the loss
on early extinguishment of debt from its net income per diluted
share as calculated under U.S. generally accepted accounting
principles because such Non-GAAP financial measure allows for a
more appropriate evaluation of its operating results. Acquired
intangible asset amortization expense is a non-cash expense related
to acquired operations that management believes is not indicative
of the on-going performance of the acquired operations. Since the
Company's U.S. pension plans are significantly over funded and have
no required cash contributions for the foreseeable future based on
current regulations, management views other pension (income)
expense from the Company's U.S. pension plans, which excludes
service costs, as not reflective of the operational performance of
the Company or its segments. While rationalization costs are
incurred on a regular basis, management views these costs more as
an investment to generate savings rather than period costs. Costs
attributed to announced acquisitions consist of third party fees
and expenses that are viewed by management as part of the
acquisition and not indicative of the on-going cost structure of
the Company. The write-up of acquired inventory required under
purchase accounting is also viewed by management as part of the
acquisition and is a non-cash charge that is not considered to be
indicative of the on-going performance of the acquired operations.
The loss on early extinguishment of debt consists of third party
fees and expenses incurred or debt costs written off that are
viewed by management as part of the cost of prepayment of debt and
not indicative of the on-going cost structure of the Company. Such
Non-GAAP financial measure is not in accordance with U.S. generally
accepted accounting principles and should not be considered in
isolation but should be read in conjunction with the unaudited
condensed consolidated statements of income and the other
information presented herein. Additionally, such Non-GAAP financial
measure should not be considered a substitute for net income per
diluted share as calculated under U.S. generally accepted
accounting principles and may not be comparable to similarly titled
measures of other companies.
(2) The Company has presented Adjusted EBIT for the periods
covered by this press release, which measure is a Non-GAAP
financial measure. The Company’s management believes it is useful
to exclude acquired intangible asset amortization expense, other
pension (income) expense for U.S. pension plans, rationalization
charges (credits), the impact from the charge for the write-up of
acquired inventory required under purchase accounting and costs
attributed to announced acquisitions from EBIT, and to include in
EBIT equity in earnings of affiliates, net of tax, for the Company
and each of its segments as calculated under U.S. generally
accepted accounting principles because such Non-GAAP financial
measure allows for a more appropriate evaluation of operating
results. Acquired intangible asset amortization expense is a
non-cash expense related to acquired operations that management
believes is not indicative of the on-going performance of the
acquired operations. Since the Company's U.S. pension plans are
significantly over funded and have no required cash contributions
for the foreseeable future based on current regulations, management
views other pension (income) expense from the Company's U.S.
pension plans, which excludes service costs, as not reflective of
the operational performance of the Company or its segments. While
rationalization costs are incurred on a regular basis, management
views these costs more as an investment to generate savings rather
than period costs. The write-up of acquired inventory required
under purchase accounting is also viewed by management as part of
the acquisition and is a non-cash charge that is not considered to
be indicative of the on-going performance of the acquired
operations. Costs attributed to announced acquisitions consist of
third party fees and expenses that are viewed by management as part
of the acquisition and not indicative of the on-going cost
structure of the Company. The Company's management views the
operating performance of its affiliates which are joint ventures as
part of the Company's operating performance and therefore believes
that the Company's share of the net operating results of its
affiliates which are joint ventures should be included in the
Company's Adjusted EBIT. Such Non-GAAP financial measure is not in
accordance with U.S. generally accepted accounting principles and
should not be considered in isolation but should be read in
conjunction with the unaudited condensed consolidated statements of
income and the other information presented herein. Additionally,
such Non-GAAP financial measure should not be considered a
substitute for income before interest and income taxes (EBIT) as
calculated under U.S. generally accepted accounting principles and
may not be comparable to similarly titled measures of other
companies.
(3) The Company has presented free cash flow in this press
release, which is a Non-GAAP financial measure. The Company’s
management believes that free cash flow is important to support its
stated business strategy of investing in internal growth and
acquisitions. Free cash flow is defined as net cash provided by
operating activities adjusted for changes in outstanding checks,
reduced by capital expenditures and increased by proceeds from
asset sales. At times, there may be other unusual cash items that
will be excluded from free cash flow. Net cash provided by
operating activities is the most comparable financial measure under
U.S. generally accepted accounting principles to free cash flow,
and it should not be inferred that the entire free cash flow amount
is available for discretionary expenditures. Such Non-GAAP
financial measure is not in accordance with U.S. generally accepted
accounting principles and should not be considered in isolation but
should be read in conjunction with the unaudited condensed
consolidated statements of cash flows and the other information
presented herein. Additionally, such Non-GAAP financial measure
should not be considered a substitute for net cash provided by
operating activities as calculated under U.S. generally accepted
accounting principles and may not be comparable to similarly titled
measures of other companies.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250129643120/en/
Alexander Hutter Vice President, Investor Relations
AHutter@silgan.com 203-406-3187
Silgan (NYSE:SLGN)
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