Silgan Holdings Inc (NASDAQ:SLGN) Q3 2019 Earnings Conference Call - Final Transcript

Oct 23, 2019 • 11:00 am ET

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Silgan Holdings Inc (NASDAQ:SLGN) Q3 2019 Earnings Conference Call - Final Transcript

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Operator
Operator

Thank you for joining the Silgan Holdings Third Quarter 2019 Earnings Results Conference Call. [Operator Instructions].

At this time, I'd like to turn the call over to Kim Ulmer, Vice President, Finance and Treasurer. Please go ahead.

Executive
Kimberly I. Ulmer

Thank you. Joining me from the company today I have Tony Allott, Chairman and CEO; Bob Lewis, EVP and CFO and Adam Greenlee, President and COO.

Before we begin the call today, we would like to make it clear that certain statements made today on this conference call may be forward-looking statements. These forward-looking statements are made based upon management's expectations and beliefs concerning future events impacting the company, and therefore involve a number of uncertainties and risks, including, but not limited to, those described in the company's annual report on Form 10-K for 2018 and other filings with the SEC.

Therefore the actual results of operations or financial condition of the company could differ materially from those expressed or implied in the forward-looking statements.

With that, I'll turn it over to Tony.

Executive
Anthony J. Allott

Thanks, Kim. Welcome everyone to our Third Quarter 2019 Earnings Conference Call. Our agenda for the morning will focus on the financial performance for the third quarter and then a review of our outlook for the remainder of 2019. After prepared remarks, Bob, Adam and I'll be happy to take any questions.

As you saw in the press release, we delivered adjusted earnings per diluted share of $0.76 for the third quarter, in line with our estimates and matching our record performance in the prior year quarter, noting that we also overcame a $0.03 decrease in non-cash pension income in the current year quarter. However, pack volumes were a little short of our expectations, and a challenging economic environment in Europe both kept us a little short of the high end of our range for the quarter.

Our plastic business once again delivered volume growth and solid operational performance, leading to another quarter of improved results. The metal container and closure businesses were largely in line with our prior year. However, another relatively weak fruit pack and vegetable pack in Europe, combined with a late start in the US, resulted in volumes below our initial expectations. Despite this, both businesses did well in controlling operating costs and achieving profit objectives.

Based on our year-to-date results and our outlook for the fourth quarter, which includes an earlier-than-anticipated end to the fruit and vegetable pack in early October, we're maintaining our guidance and tightening the range for our full-year estimate of adjusted earnings per share to $2.12 to $2.17, which includes the unfavorable non-cash pension headwind of approximately $0.13 per diluted share.

With that, I'll now turn it over to Bob to review the financial results in more detail and provide additional explanation around our earnings estimates for the remainder of the year.

Executive
Bob Lewis

Thank you, Tony. Good morning, everyone. As Tony highlighted, we delivered an in-line quarter, as adjusted earnings per diluted share of $0.76 was consistent with the record performance in the