Silgan Holdings Inc. (SLGN - Free Report) reported third-quarter 2017 adjusted earnings of 66 cents, up 8% year over year. However, earnings fell short of the Zacks Consensus Estimate of 69 cents but came within management’s guidance range of 64-71 cents. The improvement in earnings can be attributed to the acquisition of the Dispensing Systems operations in April, which continued to perform well and benefited from improving demand as well as good operation performance. Results were impacted by hurricanes as each of the businesses experienced temporary plant shutdowns and incremental logistical cost in supporting customers.
Including rationalization charges, the company’s earnings per share came in at 65 cents, up from 57 cents recorded in the prior-year quarter.
Total revenues increased 11.2% year over year to $1,267 million, missing the Zacks Consensus Estimate of $1,291 million. Higher net sales in the plastic container business and the closures business owing to the acquisition of the Dispensing Systems operations in April 2017 led to the improvement. However, lower net sales in the metal container business were a minor headwind.