Silgan, a leading provider of food containers and packaging, has revised its operating earnings projection for 2023 downwards. The company attributes this adjustment to a decrease in demand, primarily resulting from customer inventory issues.
The adjusted earnings forecast for 2023 now falls within the range of $3.40 to $3.60 per share, down from the earlier target of $3.95 to $4.15 per share. This revision does not dampen Silgan’s confidence in its customer partnerships and long-term growth prospects. President and Chief Executive, Adam Greenlee, states that Silgan continues to receive new long-term business awards and remains optimistic about its future.
However, the custom containers unit is expected to face challenges in the form of lower sales volumes for 2023. Delays in acquiring new business and issues related to customer inventory management programs contribute to this anticipated decrease. Sales volumes are projected to be approximately 10% below the previous year’s figures.
As for the third quarter, Silgan forecasts single-digit percentage organic sales volume growth in the Dispensing and Specialty Closures unit. Sales volumes in the Metal Containers unit are projected to be on par with the previous year. Notably, the volumes in these units will be influenced by how customers manage their inventory in the food and beverage sector.