Silgan Holdings Inc. reported its financial results for the third quarter and the first nine months of 2024, revealing a decline in net sales and profitability compared to the previous fiscal period. For the three months ended September 30, 2024, net sales totaled $1,745.1 million, a decrease of $58.0 million (3.2%) from $1,803.1 million in Q3 2023. For the nine months ended September 30, 2024, net sales were $4,443.5 million, down $204.6 million (4.4%) from $4,648.1 million in the same period last year.

The company's gross profit for Q3 2024 was $293.3 million, slightly up from $285.9 million in Q3 2023, resulting in a gross profit margin increase to 16.8% from 15.9%. However, income before interest and income taxes fell to $167.3 million in Q3 2024 from $194.1 million in Q3 2023. Net income for the third quarter was $100.1 million, down from $110.6 million a year earlier, leading to a basic net income per share of $0.94 compared to $1.02 in Q3 2023.

The decline in net sales was primarily attributed to a significant drop in the Metal Containers segment, which saw revenues decrease by $72.0 million (6.6%) to $1,022.6 million in Q3 2024. This was partially offset by a slight increase in the Dispensing and Specialty Closures segment, which reported $563.7 million in sales, up from $559.1 million. The Custom Containers segment also experienced growth, with sales rising to $158.8 million from $149.4 million.

Silgan's rationalization charges increased significantly, totaling $19.5 million in Q3 2024 compared to $6.4 million in Q3 2023. For the nine months ended September 30, 2024, rationalization charges reached $38.0 million, up from $13.2 million in the same period last year. Selling, general, and administrative expenses also rose, amounting to $106.4 million in Q3 2024, an increase of $22.1 million from the previous year.

On the strategic front, Silgan announced the acquisition of Weener Plastics Holding B.V. for approximately €844.2 million, funded through term and revolving loan borrowings and cash on hand. The company also entered into Euro interest rate swap agreements to manage interest rate exposure for its Euro term loans. As of September 30, 2024, total current liabilities increased to $2,305.8 million from $1,915.6 million a year earlier, while total stockholders’ equity rose to $2,054.0 million from $1,781.9 million.

Overall, Silgan Holdings Inc. is navigating a challenging market environment, with strategic acquisitions and cost management efforts aimed at enhancing its competitive position.