Silgan 2Q net rises 4 pct in face of higher costs

STAMFORD, Conn.

Silgan Holdings, which makes packaging for consumer goods, said Wednesday its profit inched higher by 4 percent despite higher costs for resins used in plastic containers.

The company forecast third-quarter net income slightly below analysts' expectations partly because of higher interest expenses under a new credit deal.

Silgan said its net income was $36.3 million, or 47 cents per share, compared with $34.8 million, or 45 cents per share, a year earlier. The latest results included a penny per share rationalization charge.

Revenue rose to $693.9 million from $689.5 million a year ago, as sales of closures and plastic containers increased.

Analysts surveyed by Thomson Reuters expected adjusted earnings of 46 cents per share on revenue of $699 million.

Silgan said it would earn between 85 and 95 cents per share in the third quarter and stood by its forecast of full-year earnings between $2.10 and $2.20 per share. The estimates included higher interest expenses of 4 cents per share in the third quarter and 7 cents per share for the year partly due to higher rates under a new $1.4 billion senior secured credit facility.

Analysts expected the company to earn 96 cents per share in the third quarter and $2.21 per share for the full year.

Shares in Silgan Holdings Inc. fell 61 cents, or 2 percent, to $29.24 in midday trading.