Highlights
- High single digit growth in high value dispensing products
- Double digit adjusted EBIT growth in Metal Containers
- Progress towards long-term strategic initiatives with multiple
new business awards
Silgan Holdings Inc. (NYSE: SLGN), a leading supplier of
sustainable rigid packaging solutions for the world's essential
consumer goods products, today reported second quarter 2023 net
sales of $1.43 billion and net income of $78.9 million, or $0.71
per diluted share, as compared to second quarter 2022 net sales of
$1.54 billion and net income of $92.7 million, or $0.83 per diluted
share.
Adjusted net income per diluted share for the second quarter of
2023 was $0.83, after adjustments increasing net income per diluted
share by $0.12. Adjusted net income per diluted share for the
second quarter of 2022, which included $0.06 per diluted share from
non-recurring income associated with Russia, was a record $1.09
after adjustments increasing net income per diluted share by $0.26.
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.
"Our performance in the second quarter benefited from the
breadth of the Silgan portfolio in a dynamic and changing
marketplace. We continued to advance our strategic initiatives amid
rapidly evolving market conditions in part by delivering continued
growth in high value dispensing products and double-digit adjusted
EBIT growth in our Metal Containers segment in the second quarter,"
said Adam Greenlee, President and CEO. "Business trends early in
the second quarter were positive, but they shifted late in the
quarter as many customers adjusted their financial priorities in
2023 to focus on new working capital and inventory management
initiatives for the remainder of the year. While we believe
consumers of our products continue to be resilient, we are
beginning to see an impact from inflation at the retail level on
consumer buying habits, including for core food and beverage
products, as we cycle against record performance in the prior year.
Our near-term performance will be impacted primarily by our
customers' inventory management initiatives, and we have lowered
our expectations for 2023 to reflect the changing market
conditions. As a result, our focus has shifted to aligning our cost
structures with the anticipated second half volumes and driving
costs out of each of our businesses," continued Mr. Greenlee. "Our
customer partnerships remain strong as Silgan continues to be
rewarded with new long-term business awards in our markets, and we
remain confident in the medium and long-term growth outlook for our
businesses. We will continue to maintain our disciplined approach
to capital deployment and our focus on returns that has
consistently delivered value for shareholders, while meeting the
unique needs of our customers and operating our low-cost,
best-in-class manufacturing platform," concluded Mr. Greenlee.
Second Quarter Results
Net sales for the second quarter of 2023 were $1.43 billion, a
decrease of $117.1 million, or 8%, as compared to the same period
in the prior year. Excluding non-recurring sales associated with
Russia (Russia Sales) of $25.5 million in the second quarter of
2022, second quarter 2023 net sales declined 6% predominantly as a
result of lower volumes.
Income before interest and income taxes (EBIT) for the second
quarter of 2023 was $144.0 million, a decrease of $14.0 million as
compared to a record $158.0 million for the second quarter of 2022.
EBIT in the Metal Containers segment of $73.6 million in the second
quarter of 2023 was higher than the prior year period. EBIT in the
Dispensing and Specialty Closures segment of $63.7 million and in
the Custom Containers segment of $17.0 million in the second
quarter of 2023 were lower than the prior year period.
Rationalization charges were $2.7 million and $3.4 million in the
second quarters of 2023 and 2022, respectively. Corporate expense
of $10.3 million in the second quarter of 2023 was lower than in
the prior year period primarily due to the $25.2 million charge
associated with the settlement with the European Commission in the
prior year period, partly offset by the write-off of a tax
indemnity from a historical acquisition and higher expense for
corporate development activities in the current year period. 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 for the second quarter of 2023
was $46.8 million, an increase of $18.1 million as compared to the
second quarter of 2022. This increase was primarily due to the
impact of higher interest rates and the write-off of $3.5 million
of accrued interest income associated with the same tax indemnity
that impacted corporate expense in the current year quarter.
The effective tax rates were 18.8% and 28.4% for the second
quarters of 2023 and 2022, respectively. The effective tax rate in
the second quarter of 2023 was favorably impacted by the reversal
of tax reserves associated with the same historical acquisition
referred to above. The effective tax rate in the second quarter of
2022 was unfavorably impacted by the non-deductible settlement with
the European Commission.
Second Quarter Segment Results
Dispensing and Specialty Closures
Net sales of the Dispensing and Specialty Closures segment were
$560.1 million in the second quarter of 2023, a decrease of $42.3
million, or 7%, as compared to $602.4 million in the second quarter
of 2022. Excluding Russia Sales of $5.4 million in the second
quarter of 2022, net sales declined 6% from the prior year quarter
as a result of lower volume / mix of 6%, with high single digit
volume growth in higher value dispensing products offset by double
digit declines in higher volume closures for food and beverage
markets. Approximately 65% of the decline in segment volume was the
result of lower food and beverage closures volumes in Europe.
Dispensing and Specialty Closures adjusted EBIT decreased $23.4
million to $76.9 million in the second quarter of 2023 as compared
to $100.3 million in the second quarter of 2022. The decrease in
adjusted EBIT was driven by the benefits in the prior year quarter
from an inventory management program and cost recovery for certain
customer project expenditures and lower volume / mix for food and
beverage products, primarily in Europe, in the current year
quarter. Dispensing and Specialty Closures adjusted EBIT was also
negatively impacted in the second quarter of 2023 by labor
challenges that limited output at a U.S. food and beverage closures
facility, driving higher costs that impacted the quarter by
approximately $10 million. These challenges are expected to be
resolved by the end of 2023.
Metal Containers
Net sales of the Metal Containers segment were $710.8 million in
the second quarter of 2023, a decrease of $43.6 million, or 6%, as
compared to $754.4 million in the second quarter of 2022. Net sales
in the Metal Containers segment decreased 3% in the second quarter
of 2023 as compared to the same period in 2022, excluding the
impact of Russia Sales of $20.1 million in the second quarter of
2022. This decrease was the result of lower unit volume of 4%, and,
as expected, soup volumes returned to a more normal seasonal
pattern. Pet food volumes continued to be strong in the
quarter.
Metal Containers adjusted EBIT increased $12.2 million to $75.7
million in the second quarter of 2023 as compared to $63.5 million
in the second quarter of 2022. The increase in adjusted EBIT was
the result of favorable price/cost including mix due to the lagged
contractual pass through of inflation in labor and other
manufacturing costs, which more than offset the decline in volumes
in the quarter.
Custom Containers
Net sales of the Custom Containers segment were $155.8 million
in the second quarter of 2023, a decrease of $31.2 million, or 17%,
as compared to $187.0 million in the second quarter of 2022. This
decrease was primarily the result of a volume reduction of 14% due
largely to the planned non-renewal of contractual business that did
not meet reinvestment criteria and lower demand for the personal
care and food markets. In addition, price/mix was 1% lower in the
second quarter of 2023 due to the contractual pass through of lower
resin costs.
Custom Containers adjusted EBIT decreased $11.0 million to $18.5
million in the second quarter of 2023 as compared to $29.5 million
in the second quarter of 2022. The decrease in adjusted EBIT was
primarily the result of lower volumes in the quarter.
Outlook for 2023
The Company has revised its estimate of adjusted net income per
diluted share for the full year of 2023 from a range of $3.95 to
$4.15 to a range of $3.40 to $3.60. This revised estimate compares
to record adjusted net income per diluted share for the full year
of 2022 of $4.01, which included $0.09 per diluted share from
non-recurring income associated with Russia. Interest expense for
2023 is now expected to be approximately $0.30 per diluted share
higher than the prior year primarily due to higher interest rates,
as compared to $0.20 per diluted share included in the Company's
prior earnings estimate for 2023. Adjusted EBIT in the Dispensing
and Specialty Closures and Metal Containers segments for 2023 are
now expected to be comparable to record levels achieved in 2022,
despite customer inventory management in the food and beverage
markets impacting volumes in the second half of the year. Custom
Containers volumes in 2023 are now expected to be approximately 10%
below the prior year due to delays in the commercialization of new
business and customer inventory management programs, which will
result in lower adjusted EBIT in the Custom Containers segment in
2023 as compared to 2022. Adjusted net income per diluted share
excludes certain items as outlined in Table C at the back of this
press release.
The Company now anticipates interest expense before loss on
early extinguishment of debt in 2023 of approximately $170 million
based on the current forward interest rate curve and an effective
tax rate for 2023 of approximately 24%.
The Company has revised its estimate of free cash flow in 2023
from approximately $425 million to approximately $375 million as
compared to $368.2 million in 2022. Free cash flow in 2023 is
expected to benefit from improvements in working capital, partially
offset by higher interest payments as a result of higher interest
rates. Capital expenditures are now expected to be approximately
$230 million in 2023.
For the third quarter of 2023, the Company expects low single
digit organic volume growth in the Dispensing and Specialty
Closures segment and flat volumes in the Metal Containers segment
as compared to the prior year quarter, with customer inventory
management in the food and beverage markets impacting volumes in
the quarter. Volumes in the Custom Containers segment for the third
quarter of 2023 are expected to be approximately 10% below the
prior year quarter due to delays in the commercialization of new
business and customer inventory management programs. The Company is
providing an estimate of adjusted net income per diluted share for
the third quarter of 2023 in the range of $1.10 to $1.20, as
compared to a record $1.28 in the third quarter of 2022. The
anticipated year-over-year change includes higher interest expense
of $0.08 per diluted share and non-recurring income associated with
Russia of $0.03 per diluted share. Given the uncertainties of the
timing of the fruit and vegetable harvest in the U.S. and Europe,
the results of the back half of the year could shift between the
third and fourth quarters. 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 second quarter of 2023 at 11:00 a.m.
eastern time on Wednesday, July 26, 2023. The conference call will
be webcast live via audio, 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 (888) 660-6144 and from outside the
U.S. and Canada should dial (929) 203-0865. A taped replay of the
conference call will be available through August 9, 2023 by calling
(800) 770-2030 for those in the U.S. and Canada or (647) 362-9199
for those outside the U.S. and Canada. The replay can also be
accessed via audio webcast at www.silganholdings.com. The
Conference ID for both the conference call and the replay is
1397141.
* * *
Silgan is a leading supplier of sustainable rigid packaging
solutions for the world's essential consumer goods products with
annual net sales of approximately $6.4 billion in 2022. Silgan
operates 110 manufacturing facilities in North and South America,
Europe and Asia. The Company is a leading worldwide supplier of
dispensing and specialty closures for food, beverage, health care,
garden, home, personal care, fragrance and beauty products. The
Company is also a leading supplier of metal containers in North
America and Europe for 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 2022 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 six months
ended June 30,
(Dollars and shares in millions,
except per share amounts)
Second
Quarter
Six
Months
2023
2022
2023
2022
Net sales
$
1,426.7
$
1,543.8
$
2,845.0
$
2,985.7
Cost of goods sold
1,176.6
1,269.9
2,356.9
2,478.3
Gross profit
250.1
273.9
488.1
507.4
Selling, general and administrative
expenses
102.1
123.8
203.5
223.9
Rationalization charges
2.7
3.4
6.8
4.8
Other pension and postretirement expense
(income)
1.3
(11.3
)
2.6
(22.7
)
Income before interest and income
taxes
144.0
158.0
275.2
301.4
Interest and other debt expense before
loss on early
extinguishment of debt
46.8
28.7
83.6
58.0
Loss on early extinguishment of debt
—
—
—
1.5
Interest and other debt expense
46.8
28.7
83.6
59.5
Income before income taxes
97.2
129.3
191.6
241.9
Provision for income taxes
18.3
36.6
40.7
64.3
Net income
$
78.9
$
92.7
$
150.9
$
177.6
Earnings per share (EPS):
Basic net income per share
$
0.72
$
0.84
$
1.37
$
1.60
Diluted net income per share
$
0.71
$
0.83
$
1.36
$
1.59
Cash dividends per common share
$
0.18
$
0.16
$
0.36
$
0.32
Weighted average shares:
Basic
110.1
110.8
110.2
110.8
Diluted
110.5
111.2
110.7
111.3
SILGAN HOLDINGS INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(UNAUDITED)
(Dollars in millions)
June 30,
June 30,
Dec. 31,
2023
2022
2022
Assets:
Cash and cash equivalents
$
236.6
$
247.8
$
585.6
Trade accounts receivable, net
1,067.6
931.3
658.0
Inventories
1,251.5
1,253.9
769.4
Other current assets
142.8
120.1
119.7
Property, plant and equipment, net
1,934.2
1,932.8
1,931.5
Other assets, net
3,281.0
3,388.6
3,281.6
Total assets
$
7,913.7
$
7,874.5
$
7,345.8
Liabilities and stockholders' equity:
Current liabilities, excluding debt
$
1,068.2
$
1,241.3
$
1,357.8
Current and long-term debt
4,162.6
4,086.2
3,425.4
Other liabilities
811.8
921.5
844.3
Stockholders' equity
1,871.1
1,625.5
1,718.3
Total liabilities and stockholders'
equity
$
7,913.7
$
7,874.5
$
7,345.8
SILGAN HOLDINGS INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(UNAUDITED)
For the six months ended June
30,
(Dollars in millions)
2023
2022
Cash flows provided by (used in) operating
activities:
Net income
$
150.9
$
177.6
Adjustments to reconcile net income to net
cash
(used in) operating activities:
Depreciation and amortization
134.1
136.8
Rationalization charges
6.8
4.8
Loss on early extinguishment of debt
—
1.5
Other changes that provided (used) cash,
net of effects
from acquisitions:
Trade accounts receivable, net
(397.4
)
(243.3
)
Inventories
(473.0
)
(475.2
)
Trade accounts payable and other changes,
net
(233.1
)
45.9
Net cash (used in) operating
activities
(811.7
)
(351.9
)
Cash flows provided by (used in) investing
activities:
Purchase of businesses, net of cash
acquired
—
(1.3
)
Capital expenditures
(118.2
)
(118.4
)
Other investing activities
1.2
(0.7
)
Net cash (used in) investing
activities
(117.0
)
(120.4
)
Cash flows provided by (used in) financing
activities:
Dividends paid on common stock
(40.4
)
(36.7
)
Changes in outstanding checks -
principally vendors
(61.4
)
(225.9
)
Shares repurchased under authorized
repurchase program
(21.8
)
(26.4
)
Net borrowings and other financing
activities
697.6
385.9
Net cash provided by financing
activities
574.0
96.9
Effect of exchange rate changes on cash
and cash equivalents
5.7
(8.2
)
Cash and cash equivalents:
Net (decrease)
(349.0
)
(383.6
)
Balance at beginning of year
585.6
631.4
Balance at end of period
$
236.6
$
247.8
SILGAN HOLDINGS INC.
CONSOLIDATED SUPPLEMENTAL
SEGMENT FINANCIAL DATA
(UNAUDITED)
For the quarter and six months
ended June 30,
(Dollars in millions)
Second
Quarter
Six
Months
2023
2022
2023
2022
Net sales:
Dispensing and Specialty Closures
$
560.1
$
602.4
$
1,140.0
$
1,200.4
Metal Containers
710.8
754.4
1,381.0
1,405.1
Custom Containers
155.8
187.0
324.0
380.2
Consolidated
$
1,426.7
$
1,543.8
$
2,845.0
$
2,985.7
Income before interest and
income taxes (EBIT)
Dispensing and Specialty Closures
$
63.7
$
91.3
$
134.7
$
178.7
Metal Containers
73.6
66.4
121.4
104.4
Custom Containers
17.0
30.9
35.4
55.6
Corporate
(10.3
)
(30.6
)
(16.3
)
(37.3
)
Consolidated
$
144.0
$
158.0
$
275.2
$
301.4
SILGAN HOLDINGS INC.
RECONCILIATION OF ADJUSTED NET
INCOME PER DILUTED SHARE (1)
(UNAUDITED)
For the quarter and six months
ended June 30,
(Dollars and shares in millions,
except per share amounts)
Table
A
Second
Quarter
Six
Months
2023
2022
2023
2022
Net
Diluted
Net
Diluted
Net
Diluted
Net
Diluted
Income
EPS
Income
EPS
Income
EPS
Income
EPS
U.S. GAAP net income and diluted EPS
$
78.9
$
0.71
$
92.7
$
0.83
$
150.9
$
1.36
$
177.6
$
1.59
Adjustments (a)
12.8
0.12
28.7
0.26
27.2
0.25
32.0
0.29
Non-U.S. GAAP adjusted net income and
adjusted diluted EPS
$
91.7
$
0.83
$
121.4
$
1.09
$
178.1
$
1.61
$
209.6
$
1.88
Weighted average number of common shares
outstanding - Diluted
110.5
111.2
110.7
111.3
(a) Adjustments consist of items in the
table below
Second
Quarter
Six
Months
2023
2022
2023
2022
Adjustments:
Acquired intangible asset amortization
expense
$
13.3
$
13.2
$
26.5
$
26.6
Other pension expense (income) for U.S.
pension plans
0.8
(11.9
)
1.7
(23.9
)
Rationalization charges
2.7
3.4
6.8
4.8
European Commission settlement
—
25.2
—
25.2
Loss on early extinguishment of debt
—
—
—
1.5
Pre-tax impact of adjustments
16.8
29.9
35.0
34.2
Tax impact of adjustments
4.0
1.2
7.8
2.2
Net impact of adjustments
$
12.8
$
28.7
$
27.2
$
32.0
Weighted average number of common shares
outstanding - Diluted
110.5
111.2
110.7
111.3
Diluted EPS impact from adjustments
$
0.12
$
0.26
$
0.25
$
0.29
Adjusted tax rate
19.6%
23.8%
21.4%
24.1%
SILGAN HOLDINGS INC.
RECONCILIATION OF ADJUSTED
EBIT (2)
(UNAUDITED)
For the quarter and six months
ended June 30,
(Dollars in millions)
Table
B
Second
Quarter
Six
Months
2023
2022
2023
2022
Dispensing and
Specialty Closures:
Income before interest and income taxes
(EBIT)
$
63.7
$
91.3
$
134.7
$
178.7
Acquired intangible asset amortization
expense
11.8
11.7
23.6
23.7
Other pension expense (income) for U.S.
pension plans
0.2
(2.7
)
0.3
(5.5
)
Rationalization charges
1.2
—
1.3
—
Adjusted EBIT
$
76.9
$
100.3
$
159.9
$
196.9
Metal
Containers:
Income before interest and income taxes
(EBIT)
$
73.6
$
66.4
$
121.4
$
104.4
Acquired intangible asset amortization
expense
0.3
0.3
0.6
0.6
Other pension expense (income) for U.S.
pension plans
0.3
(6.6
)
0.7
(13.3
)
Rationalization charges
1.5
3.4
5.4
4.7
Adjusted EBIT
$
75.7
$
63.5
$
128.1
$
96.4
Custom
Containers:
Income before interest and income taxes
(EBIT)
$
17.0
$
30.9
$
35.4
$
55.6
Acquired intangible asset amortization
expense
1.2
1.2
2.3
2.3
Other pension expense (income) for U.S.
pension plans
0.3
(2.6
)
0.7
(5.1
)
Rationalization charges
—
—
0.1
0.1
Adjusted EBIT
$
18.5
$
29.5
$
38.5
$
52.9
Corporate:
Loss before interest and income taxes
(EBIT)
$
(10.3
)
$
(30.6
)
$
(16.3
)
$
(37.3
)
European Commission settlement
—
25.2
—
25.2
Adjusted EBIT
$
(10.3
)
$
(5.4
)
$
(16.3
)
$
(12.1
)
Total adjusted EBIT
$
160.8
$
187.9
$
310.2
$
334.1
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
Third
Quarter,
Year
Ended
September
30,
December
31,
Estimated
Actual
Estimated
Actual
Low
High
Low
High
2023
2023
2022
2023
2023
2022
U.S. GAAP net income as estimated for
2023
and as reported for 2022
$
110.5
$
121.9
$
138.7
$
327.2
$
351.1
$
340.8
Adjustments (a)
10.9
10.9
3.0
48.5
48.5
104.6
Non-U.S. GAAP adjusted net income as
estimated for 2023 and presented for 2022
$
121.4
$
132.8
$
141.7
$
375.7
$
399.6
$
445.4
U.S. GAAP diluted EPS as estimated for
2023
and as reported for 2022
$
1.00
$
1.10
$
1.25
$
2.96
$
3.16
$
3.07
Adjustments (a)
0.10
0.10
0.03
0.44
0.44
0.94
Non-U.S. GAAP adjusted diluted EPS as
estimated for 2023 and presented for 2022
$
1.10
$
1.20
$
1.28
$
3.40
$
3.60
$
4.01
(a) Adjustments consist of items in the
table below
Third
Quarter,
Year
Ended
September
30,
December
31,
2023
2022
2023
2022
Estimated
Actual
Estimated
Actual
Adjustments:
Acquired intangible asset amortization
expense
$
13.2
$
12.9
$
53.0
$
52.6
Other pension expense (income) for U.S.
pension plans
0.8
(11.6
)
3.3
(47.5
)
Rationalization charges
0.5
2.7
7.7
74.1
European Commission settlement
—
—
—
25.2
Loss on early extinguishment of debt
—
—
—
1.5
Pre-tax impact of adjustments
14.5
4.0
64.0
105.9
Tax impact of adjustments
3.6
1.0
15.5
1.3
Net impact of adjustments
$
10.9
$
3.0
$
48.5
$
104.6
Weighted average number of common shares
outstanding - Diluted
110.4
110.7
110.5
111.0
Diluted EPS impact from adjustments
$
0.10
$
0.03
$
0.44
$
0.94
(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 for U.S. pension plans,
rationalization charges, the charge for the European Commission
settlement 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 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 charge for the European Commission settlement is non-recurring
and non-operational and relates to prior years and is not
indicative of the on-going cost structure of the Company. 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 for U.S. pension plans, rationalization charges and
the charge for the European Commission settlement from EBIT 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 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 charge for the European Commission settlement is non-recurring
and non-operational and relates to prior years and is 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 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230726997214/en/
Alexander Hutter Vice President, Investor Relations
AHutter@silgan.com 203-406-3187
Silgan (NYSE:SLGN)
Gráfica de Acción Histórica
De Dic 2024 a Ene 2025
Silgan (NYSE:SLGN)
Gráfica de Acción Histórica
De Ene 2024 a Ene 2025
