‘Essential’ Business Silgan Reports Record Quarterly Profits

Silgan Holdings Stamford Connecticut Fortune 1000
Packaging, lids, and dispensers manufactured by Silgan

Stamford Advocate 4/23/20: Consumer goods packaging supplier Silgan Holdings reported record quarterly profits this week, as it maintained its operations amid the coronavirus crisis.

The bottom line of nearly $58 million compared with about $47 million a year ago. Revenues totaled about $1 billion — about the same year over year — although it produced record volumes across its metal container, plastic container, and closure businesses.

As a manufacturer, Silgan has gained an ‘essential’ business designation from the U.S. Department of Homeland Security. The company said it has received similar classifications from the vast majority of other governmental agencies in other countries in which it operates.

All 100 of its production facilities around the world have remained open, and the company said that many have set production records.

“We are incredibly thankful for and proud of the employees of Silgan, who have responded to the critical need for our vital products in the supply of food, beverage and consumer health products, such as soaps and sanitizers, by coming to work, performing at a high level and executing our enhanced safety protocols,” Silgan CEO and Chairman Tony Allott said in a statement.

Silgan also said this week that it planned to complete in the second quarter of this year the $900 million acquisition of the dispensing-parts business of French packaging specialist Albea.

Company officials have positioned the deal as one that would enhance their firm’s products and services through the acquisition of a supplier of pumps, sprayers and foam dispensers to the beauty and personal care markets.

They expect the transaction to generate $20 million in “cost synergy opportunities,” a reference to potential savings.

In February, Silgan completed the acquisition of Macedonia, Ohio-based Cobra Plastics, which manufactures injection-molded plastic closures for consumer products, with a focus on aerosol overcaps.

Silgan shares were trading midday Thursday at about $34, in line with their 52-week high.