STAMFORD, Conn. - Silgan Holdings Inc. (NYSE: NYSE:SLGN), a prominent supplier of rigid packaging solutions, disclosed its financial results for the full year of 2023, with net sales totaling $6.B and net income at $326.0M, or $2.98 per diluted share. This compares to $6.4B in net sales and a net income of $340.8M, or $3.07 per diluted share, in the previous year.
The company saw a record annual adjusted EBIT in its Metal Containers segment and announced a multi-year $50M cost reduction program. Over the past year, Silgan returned more than $250M to its shareholders through share repurchases and dividends.
Adam Greenlee, President and CEO of Silgan, highlighted the company's resilience amid market volatility and its ability to deliver strong performance. Greenlee pointed to the company's second-highest annual adjusted earnings in its history and robust cash generation as key achievements.
Silgan's Dispensing and Specialty Closures segment experienced growth driven by innovation, while the Metal Containers segment sustained profitability. Looking ahead to 2024, the company remains optimistic about its strategic growth initiatives and expects to drive earnings and cash flow growth.
For the fourth quarter of 2023, Silgan reported net sales of $1.3B, an 8% decrease compared to the same period in the previous year, primarily due to lower volumes. Net income for the quarter was $64.4M, or $0.60 per diluted share, up from $24.6M, or $0.22 per diluted share, in the fourth quarter of 2022.
The company's effective tax rates were 23.0% for the fourth quarter of 2023 and 47.2% for the same period in 2022, the latter being unfavorably impacted by the write-off of net assets related to operations in Russia.
Silgan anticipates adjusted net income per diluted share for the full year of 2024 to be in the range of $3.55 to $3.75, a 7% increase at the midpoint over 2023's adjusted net income per diluted share of $3.40. The company estimates free cash flow in 2024 to be approximately $375M, compared to $356.7M in 2023.
The information provided is based on a press release statement.
InvestingPro Insights
In light of Silgan Holdings Inc.'s (NYSE: SLGN) recent financial results, investors can gain additional perspective through real-time metrics from InvestingPro. The company's adjusted market capitalization stands at $4.65B, with a trailing twelve months P/E ratio as of Q3 2023 of 13.4, reflecting a more attractive valuation compared to the industry average. The price to book ratio during the same period is 2.61, indicating the company might be reasonably valued in terms of its assets.
InvestingPro Tips for Silgan Holdings highlight the company's shareholder-friendly actions, with management aggressively buying back shares and a notable track record of raising its dividend for 20 consecutive years. This consistent performance, coupled with low price volatility, offers investors a potential oasis of stability in the midst of market uncertainty. Additionally, analysts predict profitability for the current year, which aligns with Silgan's positive outlook for 2024.
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