Silgan 3Q profit rises on container business

Silgan posts 39 percent jump in 3rd-quarter profit on strong demand at food container business

• On 10:29 am EDT, Wednesday October 21, 2009

STAMFORD, Conn. (AP) -- Packaging maker Silgan Holdings Inc. said Wednesday its third-quarter profit rose 39 percent on sales improvements at its metal food container business.

Silgan earned $73.5 million, or $1.91 per share, compared with $52.8 million, or $1.38 per share, in the same quarter last year. The 2008 quarter's results included 7 cents per share in one-time charges.

Sales rose 5.4 percent to $1.02 billion from $964.3 million.

The results beat Wall Street predictions. Analysts polled by Thomson Reuters expected a profit of $1.59 per share on $968.6 million in revenue.

Silgan credited the sales increase to higher average selling prices at its metal food container business due to the pass through of higher raw material and other manufacturing costs, along with significantly higher unit volumes.

Those increases were offset by lower average selling prices at the company's plastic container business, lower volumes at its plastic container and closures businesses and unfavorable exchange rates, Silgan said.

The company also boosted its fiscal-year profit prediction, citing strong financial results in the first three quarters.

Silgan shares rose 31 cents to $55.25 in morning trading.