Revenue for holding company of Fort Smith manufacturer up 8.8%

Stamford, Conn.-based Silgan Holdings Inc., which recently opened a manufacturing plant in Fort Smith, reported full year 2018 net income of $224 million, or $2.01 per diluted share, below the $269.7 million, or $2.42 per diluted share, in 2017.

Net sales during 2018 were $4.45 billion, up 8.8% compared to 2017.

“We expect all of our businesses to deliver improved operating results in 2019, largely offset by an approximately $20 million, or $0.13 per diluted share, non-cash pension headwind as a result of significant market declines in investment values at the end of 2018,” Tony Allott, Silgan president and CEO, said in the earnings statement. “As a result, we estimate adjusted net income per diluted share for 2019 to be in a range of $2.10 to $2.20, a 9.6 percent improvement over the prior year at the midpoint of the range excluding the unfavorable non-cash pension impact. We also expect to continue to generate significant free cash flow of approximately $275 million in 2019.”

Net sales of the metal container business were $2.38 billion in 2018, up 4.4%, compared to 2017. Segment income of the metal container business in 2018 was $198.8 million, down $31.4 million as compared to $230.2 million in 2017.

Net sales of the closures business were $1.46 billion in 2018, up 16.9% compared to $1.25 billion in 2017. Segment income of the closures business for 2018 increased $47.9 million to $189.9 million as compared to $142 million in 2017.

Net sales of the plastic container business were $614.1 million in 2018, up 8.7% compared to $565.1 million in 2017. Segment income of the plastic container business in 2018 was $42.6 million, up $14.8 million compared to $27.8 million in 2017.

The company estimates that its adjusted net income per diluted share for 2019 will be in the range of $2.10 to $2.20.

Silgan shares (NASDAQ: SLGN) closed Friday (Feb. 1) at $27.93, up 31 cents. During the past 52 weeks the share price has ranged between $22.24 and $29.78.