Silgan posts record income for 2013

Silgan Holdings Inc., a supplier of rigid packaging for shelf-stable food and other consumer goods products, reported a record income per share for 2013.

The Stamford, Conn.-based company reported full year 2013 net income of US$185.4 million, or a record US$2.87 per diluted share, as compared to full year 2012 net income of US$151.3 million, or US$2.17 per diluted share.

Net sales for the full year of 2013 were US$3.71 billion, the company said, an increase of US$120.2 million, or 3.3 percent, as compared to 2012. “This increase was the result of an increase in net sales across all businesses,” Silgan said.

Income from operations for 2013 was US$324.2 million, a decrease of US$1.3 million, or 0.4 per cent, as compared to US$325.5 million for 2012, and operating margin decreased to 8.7 per cent from 9.1 per cent for the same periods. The company attributed the decreases to a decrease in income from operations in the closures business primarily in Venezuela and an increase in corporate expenses.

Net sales of the company’s plastic container business were US$647.0 million in 2013, an increase of US$32.5 million, or 5.3 per cent, as compared to US$614.5 million in 2012. “This increase was principally due to higher volumes of approximately 3 per cent, a more favorable mix of products sold and higher average selling prices due to the pass through of higher raw material costs, partially offset by the impact of unfavorable foreign currency translation,” Silgan said. “The increase in volumes was attributable to the inclusion for a full year of the plastic food container operations acquired in August 2012, which more than offset lower volumes in the legacy operations due in part to weaker customer demand as well as ongoing efforts to rebalance the portfolio of the business.”

According to Silgan, income from operations of the plastic container business was US$38.6 million, an increase of US$7.8 million as compared to US$30.8 million in 2012, and operating margin increased to 6.0 per cent from 5.0 per cent over the same periods.