Silgan Holdings Inc (NASDAQ:SLGN) Q3 2020 Earnings Conference Call - Final Transcript

Oct 21, 2020 • 11:00 am ET

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Silgan Holdings Inc (NASDAQ:SLGN) Q3 2020 Earnings Conference Call - Final Transcript

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Operator
Operator

Thank you for joining the Silgan Holdings Third Quarter 2020 Earnings Results Conference Call. [Operator Instructions]

At this time, I would 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; Adam Greenlee, President and COO; and Bob Lewis, EVP and CFO.

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 2019 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 2020 earnings conference call. Our agenda for this morning will focus on the financial performance for the third quarter, and then to review the outlook for the remainder of the year. After those remarks, Bob, Adam and I will be pleased to answer any questions you might have.

As you saw in the press release, we delivered record adjusted earnings per diluted share of $1.04 for the third quarter, a 37% increase versus the prior year record results. This exceptional performance was a direct result of continued strong demand for our products across our business segments and the success of the entire Silgan team to meet these demands in a very challenging environment.

Since the beginning of this pandemic, our employees have continued working extended hours, followed rigorous safety protocols, and ensured supply of essential products to consumers all over the world. Through these efforts, we've had an excellent opportunity to showcase to our customers just exactly why they do business with Silgan.

During the quarter, our metal food container business benefited from 17% growth in unit volumes, primarily as a result of the increased at home food consumption and growing consumer awareness of the value and benefits of canned foods, as well as the shift in timing of certain pack related volumes from the front half of the year to the third quarter.

We were pleased to see the strong demand continue even though restaurant activity picked up over the summer, supporting the idea of the new consumers are discovering these products and our customers are reenergized in marketing and promoting them.

Our closures business had great demand across most of our product range, but particularly for dispensing systems, where demand for surface cleaners, pumps, and foamers drove a 22% increase in these products. This continued strong demand was partly offset by continued weaker demand for certain beauty products which as expected resulted in the recently acquired dispensing operations from Albea