Silgan reports rise in third-quarter net income

27 October 2011 (Last Updated October 27th, 2011 18:30)

US-based rigid packaging supplier Silgan has reported a third-quarter net income of $78.8m 2011, up from $65.2m year in 2010, helped by higher margins in its metal containers business and higher metal costs for customers.

US-based rigid packaging supplier Silgan has reported a third-quarter net income of $78.8m 2011, up from $65.2m year in 2010, helped by higher margins in its metal containers business and higher metal costs for customers.

Net income for the first nine months of the year reached $156.1m, compared with $128.3m in 2010.

Net sales for the quarter increased by 14.6% to $1.14bn, an increase of $145.9m from last year's figure.

During the quarter, net sales in the metal container business increased by 15.9% to $798.7m, an increase of $109.8m, while income from operations increased by $16.4m to $111.7m.

Silgan said net sales of the closures business for the quarter increased by 16.4% to $189.5m, up from $162.8m in 2010, and income from operations increased $2.4m to $24.4m.

For the quarter, net sales of the plastic container business rose by 6.3% to $159.8m, an increase of $9.4m.

Silgan Holdings president and CEO Tony Allott said the company's metal container business benefited from the inclusion of the recent acquisition of Vogel & Noot and the closures business benefited from the recently acquired IPEC and DGS operations.