Silgan Holdings Inc (SLGN) has reported a 10.57 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $23.70 million, or $0.41 a share in the quarter, compared with $26.50 million, or $0.44 a share for the same period last year. On an adjusted basis, profit per share for the quarter was stable at $0.48, when compared with the last year period.

Revenue during the quarter went down marginally by 2.86 percent to $805.90 million from $829.60 million in the previous year period. Gross margin for the quarter expanded 2 basis points over the previous year period to 13.65 percent. Total expenses were 93.52 percent of quarterly revenues, down from 93.67 percent for the same period last year. This has led to an improvement of 15 basis points in operating margin to 6.48 percent.

Operating income for the quarter was $52.20 million, compared with $52.50 million in the previous year period.

"In 2016, we posted adjusted net income per diluted share of $2.77 and free cash flow of $179.9 million and positioned the Company for further shareholder value creation,” said Tony Allott, president and chief executive officer. "Our closures business once again delivered record operating income in 2016, as it continued to improve manufacturing efficiencies and benefitted from a robust U.S. beverage market due in large part to hot weather conditions across the country. As expected, our metal and plastic container businesses were impacted throughout the year by the footprint optimization programs which included the commercialization of three new manufacturing facilities. The Company is in a good position to reap the benefits of these efforts in 2017 and beyond," continued Mr. Allott.

For financial year 2017, Silgan Holdings Inc forecasts diluted earnings per share to be in the range of $3.14 to $3.34. The company forecasts diluted earnings per share to be in the range of $3.15 to $3.35 on adjusted basis.

For the first-quarter 2017, Silgan Holdings Inc forecasts diluted earnings per share to be in the range of $0.47 to $0.57. On an adjusted basis, the company forecasts diluted earnings per share to be in the range of $0.48 to $0.58 for the first-quarter.

The company has spent $180.30 million cash to meet investing activities during the year as against cash outgo of $237.10 million in the last year. It has incurred net capital expenditure of $180.30 million on net basis during the year, down 23.73 percent or $56.10 million from year ago.

The company has spent $289.50 million cash to carry out financing activities during the year as against cash outgo of $221.30 million in the last year period.

Cash and cash equivalents stood at $24.70 million as on Dec. 31, 2016, down 75.28 percent or $75.20 million from $99.90 million on Dec. 31, 2015.

Debt moves up marginally
Silgan Holdings Inc has witnessed an increase in total debt over the last one year. It stood at $1,561.60 million as on Dec. 31, 2016, up 3.18 percent or $48.10 million from $1,513.50 million on Dec. 31, 2015. Total debt was 6,322.27 percent of total assets as on Dec. 31, 2016, compared with 47.41 percent on Dec. 31, 2015.