Silgan says profit to miss forecast as metal container demand falls

Tue Dec 18, 2012 9:38am EST

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(Reuters) - Consumer goods packager Silgan Holdings Inc (SLGN.O) said fourth-quarter earnings would be below its forecast due to lower demand for metal food containers during the quarter, sending the company's shares down 6 percent in early trade.

Silgan, which makes metal and plastic consumer goods packaging products, expects to post an adjusted fourth-quarter profit of 43 cents to 53 cents per share.

It had forecast earnings of 58 cents to 63 cents per share in October.

Analysts on average are expecting earnings of 60 cents per share, according to Thomson Reuters I/B/E/S.

The company said the extended shutdown of two facilities due to hurricane Sandy affected its product mix and manufacturing costs during the fourth quarter.

Silgan also extended the expiration date of its tender offer to purchase up to $250 million of its common stock to February 5, 2013.

Silgan shares, which have gained about 15 percent so far this year, were trading at $41.99 on Tuesday morning on the Nasdaq.

(Reporting by Ritika Rai in Bangalore; Editing by Roshni Menon)


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