Silgan Holdings Inc. (SLGN, Financial) filed Quarterly Report for the period ended 2010-03-31.
Silgan Holdings Inc. has a market cap of $2.15 billion; its shares were traded at around $28.1 with a P/E ratio of 13.64 and P/S ratio of 0.7. The dividend yield of Silgan Holdings Inc. stocks is 1.49%. Silgan Holdings Inc. had an annual average earning growth of 7% over the past 10 years. GuruFocus rated Silgan Holdings Inc. the business predictability rank of 4-star.SLGN is in the portfolios of Steven Cohen of SAC Capital Advisors.
Selling, General and Administrative Expenses. Selling, general and administrative expenses as a percentage of consolidated net sales increased 0.4 percentage points to 6.7 percent for the first quarter of 2010 as compared to 6.3 percent for the same period in 2009. Selling, general and administrative expenses increased $3.2 million to $44.5 million for the first quarter of 2010 as compared to $41.3 million for the same period in 2009 primarily due to a charge of $3.2 million recognized for the remeasurement of the net assets in the operations of Venezuela to the recently devalued official Bolivar exchange rate.
Income from operations of the closures business for the first quarter of 2010 decreased $3.2 million, or 22.4 percent, as compared to the same period in 2009, and operating margin decreased to 7.7 percent from 10.0 percent over the same periods. These decreases were primarily attributable to a $3.2 million charge recognized for the remeasurement of net assets in the Venezuelan operations, the negative impact from the lagged pass through of higher resin costs and lower unit volumes, partially offset by the benefits of ongoing cost controls, improved manufacturing efficiencies and lower rationalization charges. The first quarter of 2009 included rationalization charges of $1.4 million for a reduction in workforce at the operating facility in Germany.
For the three months ended March 31, 2010, we used cash and cash equivalents of $206.6 million and net borrowings of revolving loans of $74.0 million to fund cash used in operations of $154.7 million (which consisted of $92.3 million of contributions to our pension benefit plans and $62.4 million primarily for our seasonal working capital needs), decreases in outstanding checks of $93.0 million, net capital expenditures of $23.9 million, net payments for stock-based compensation issuances of $0.8 million and dividends paid on our common stock of $8.2 million.
For the three months ended March 31, 2009, we used net borrowings of revolving loans of $155.3 million and net proceeds from stock-based compensation issuances of $1.4 million to fund cash used in operations of $36.3 million (which consisted of $23.1 million of contributions to our pension benefit plans and $13.2 million primarily for our seasonal working capital needs), decreases in outstanding checks of $51.3 million, net capital expenditures of $23.8 million and dividends paid on our common stock of $7.3 million and to increase cash and cash equivalents by $38.0 million.
In February 2010, we announced a plan to exit our Port Clinton, Ohio plastic container manufacturing facility, which plan included the termination of approximately 150 employees. Total estimated charges related to this plan are $4.9 million. Through March 31, 2010, we have recognized a total of $2.1 million. Remaining expenses and cash expenditures of $2.8 million and $3.4 million, respectively, are expected primarily in 2010.
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Silgan Holdings Inc. has a market cap of $2.15 billion; its shares were traded at around $28.1 with a P/E ratio of 13.64 and P/S ratio of 0.7. The dividend yield of Silgan Holdings Inc. stocks is 1.49%. Silgan Holdings Inc. had an annual average earning growth of 7% over the past 10 years. GuruFocus rated Silgan Holdings Inc. the business predictability rank of 4-star.SLGN is in the portfolios of Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations:
Overview. Consolidated net sales were $664.0 million in the first quarter of 2010, representing a 1.3 percent increase as compared to the first quarter of 2009 primarily as a result of higher unit volumes in both the metal food and plastic container businesses and the impact of favorable foreign currency translation, partially offset by lower unit volumes in the closures business. Income from operations for the first quarter of 2010 of $56.7 million increased by $4.3 million, or 8.2 percent, as compared to the same period in 2009 primarily due to higher unit volumes in the metal food container business, the timing of certain contractual pass throughs of manufacturing costs and effective cost control and manufacturing efficiencies, partially offset by the impact from the delayed pass through of significant increases in resin costs in the plastic container and closures businesses as compared to substantial benefits from the delayed pass through of decreases in resin costs in the first quarter of 2009 and the recognition of a charge of $3.2 million for the remeasurement of net assets in the Venezuela operations. Results for 2010 included rationalization charges of $2.1 million and a charge of $3.2 million for the impact from the remeasurement of the net assets in Venezuela. Results for 2009 included rationalization charges of $1.4 million. Net income for the first quarter of 2010 was $26.8 million as compared to $26.9 million for the same period in 2009. Net income per diluted share was $0.35 for both periods.Selling, General and Administrative Expenses. Selling, general and administrative expenses as a percentage of consolidated net sales increased 0.4 percentage points to 6.7 percent for the first quarter of 2010 as compared to 6.3 percent for the same period in 2009. Selling, general and administrative expenses increased $3.2 million to $44.5 million for the first quarter of 2010 as compared to $41.3 million for the same period in 2009 primarily due to a charge of $3.2 million recognized for the remeasurement of the net assets in the operations of Venezuela to the recently devalued official Bolivar exchange rate.
Income from operations of the closures business for the first quarter of 2010 decreased $3.2 million, or 22.4 percent, as compared to the same period in 2009, and operating margin decreased to 7.7 percent from 10.0 percent over the same periods. These decreases were primarily attributable to a $3.2 million charge recognized for the remeasurement of net assets in the Venezuelan operations, the negative impact from the lagged pass through of higher resin costs and lower unit volumes, partially offset by the benefits of ongoing cost controls, improved manufacturing efficiencies and lower rationalization charges. The first quarter of 2009 included rationalization charges of $1.4 million for a reduction in workforce at the operating facility in Germany.
For the three months ended March 31, 2010, we used cash and cash equivalents of $206.6 million and net borrowings of revolving loans of $74.0 million to fund cash used in operations of $154.7 million (which consisted of $92.3 million of contributions to our pension benefit plans and $62.4 million primarily for our seasonal working capital needs), decreases in outstanding checks of $93.0 million, net capital expenditures of $23.9 million, net payments for stock-based compensation issuances of $0.8 million and dividends paid on our common stock of $8.2 million.
For the three months ended March 31, 2009, we used net borrowings of revolving loans of $155.3 million and net proceeds from stock-based compensation issuances of $1.4 million to fund cash used in operations of $36.3 million (which consisted of $23.1 million of contributions to our pension benefit plans and $13.2 million primarily for our seasonal working capital needs), decreases in outstanding checks of $51.3 million, net capital expenditures of $23.8 million and dividends paid on our common stock of $7.3 million and to increase cash and cash equivalents by $38.0 million.
In February 2010, we announced a plan to exit our Port Clinton, Ohio plastic container manufacturing facility, which plan included the termination of approximately 150 employees. Total estimated charges related to this plan are $4.9 million. Through March 31, 2010, we have recognized a total of $2.1 million. Remaining expenses and cash expenditures of $2.8 million and $3.4 million, respectively, are expected primarily in 2010.
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