USA – Silgan Holdings, a rigid packaging solution company, has reported a 7% decrease in net sales for the first quarter (Q1) of the financial year 2024 (FY24), amounting to US$1.32 billion compared with US$1.42 billion in the same period in FY23.
The company attributes the decrease primarily to lower volumes, which were impacted by [specific factors], and the pass-through of reduced raw material costs.
During the quarter ending 31 March 2024, its net income stood at US$55.2 million, a decrease from the US$72.0 million reported in Q1 FY23.
Silgan’s income before interest and income taxes (EBIT) also saw a reduction, falling to US$111.7 million in Q1 FY24, down by US$19.5 million from the US$131.2 million reported in Q1 FY23.
The quarter’s EBIT for the company’s Dispensing, Specialty Closures, and Metal Containers segments was reported at US$59.7 million and US$41.7 million, respectively.
Despite the decline in net sales and net income, Silgan is maintaining its full-year 2024 adjusted net income per diluted share forecast, anticipating in the range of US$3.55 to US$3.75.
This projection indicates a 7% increase at the midpoint over the adjusted net income per diluted share of US$3.40 in 2023.
The company also anticipates volumes across all segments to surpass 2023 levels.
Silgan president and CEO Adam Greenlee said: “The Silgan team delivered strong first-quarter results at the high end of our guidance range, which continued to display the power of our diverse portfolio and winning long-term business strategy.
“We remain focused on meeting our customers’ unique needs while actively managing what is within our control. We have made significant progress towards our US$50 million cost-reduction program and are confident in our ability to deliver US$20 million of cost savings in 2024.”
Ball reports stable comparable net earnings of US$217M in Q1 FY24
Meanwhile, Ball Corporation has maintained consistent net earnings of US$217 million for the first quarter (Q1) of fiscal year 2024 (FY24), aligning with its performance from the corresponding period in the previous year.
Although the company’s comparable diluted earnings per share for the quarter decreased slightly to ¢68 from ¢69 per diluted share in FY23, net sales for the quarter ending March 31, 2024, totaled US$2.87 billion, reflecting a decline from US$2.98 billion in FY23.
In the Beverage packaging segment, North and Central America, sales amounted to US$1.4 billion compared to US$1.50 billion in Q1 FY23, while comparable operating earnings improved to US$192 million from US$183 million in the same period.
The decrease in sales was attributed to lower shipments and the contractual pass-through of reduced aluminium costs, offset by the annual pass-through of inflationary costs.
Similarly, the Beverage packaging segments in Europe, the Middle East, and Africa reported comparable operating earnings of US$85 million on sales of US$810 million for Q1 2024, compared to US$73 million on sales of US$834 million in 2023.
The South America segment’s comparable operating earnings for Q1 2024 were US$55 million on sales of US$482 million, up from US$50 million on sales of US$450 million in the previous year.
Despite a 3.7% increase in global beverage can shipments over the quarter, Ball experienced a 3.0% decrease in volume across its global extruded aluminium bottles and aerosol containers, attributed to challenging year-over-year comparisons and seasonal customer filling downtime.
In February of this year, Ball completed the divestiture of its aerospace business for approximately US$5.6 billion, facilitating immediate deleveraging and initiating a large multiyear share repurchase program.
Ball’s Chair and CEO, Daniel Fisher, expressed satisfaction with the first-quarter results and emphasized the company’s commitment to advancing sustainable aluminium packaging, driving innovation, and creating long-term shareholder value through manufacturing efficiencies and operational excellence globally.
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