BLL Ball Corp

Consumer goods packaging products manufacturer Silgan Holdings Inc. (SLGN) announced that its board of directors has authorized an aggregate buyback of $300 million of common stock, including the previous authorization. The company will have to repurchase the shares within December 31, 2014, as per the new authorization.

Silgan continues to create shareholders value through repurchase and payment of dividend to its shareholders. Earlier, in June 2010, the board of directors authorized a buyback of $300 million of common stock.  As a result, the shares outstanding of the company on June 30, 2011 declined to 70.5 million, reflecting a reduction of 6.78 million from the year-ago level of 77.28 million.

The company has also increased the quarterly dividend rate twice in the trailing twelve quarters. Silgan is scheduled to pay a quarterly dividend of 11 cents on September 15, 2011, to shareholders of record of common stock on September 1, 2011.

The company boasts of a strong financial position. Cash and cash equivalents of the company as of June 30, 2011 were $127.5 million, while cash flow from operation in the first half of the year was $77.3 million, which the company can leverage for its shareholder-friendly moves.

Silgan reported strong results of 73 cents per share in the recently concluded quarter, comfortably surpassing year-ago results. The company expects third quarter earnings per share in the range of $1.05 to $1.15 and full year earnings in the range of $2.60 to $2.70 per share.

The Zacks Consensus Estimates for third quarter 2011, fiscal year 2011 and fiscal year 2012 currently stand at $1.12 per share, $2.66 per share and $3.05 per share, respectively.

Silgan present retains a Zacks #3 Rank which translates to a short-term Hold rating. Silgan competes with Ball Corporation (BLL) and Crown Holdings Inc. (CCK).

Based in Stamford, Connecticut, Silgan Holdings Inc. manufactures and sells directly as well as through a network of distributors, metal and plastic consumer goods packaging products primarily in the United States, Europe, and Canada.

 
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