Silgan Holdings Inc. reported unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2017. For the quarter, net sales were $995.7 million against $805.9 million a year ago. Income from operations was $86.4 million against $52.2 million a year ago. Income before income taxes was $56.4 million against $35.1 million a year ago. Net income was $146.1 million against $23.7 million a year ago. Earnings per diluted share were $1.31 against $0.20 per basic and diluted share a year ago. Adjusted net income per diluted share was $0.32 against $0.24 a year ago.

For the year, net sales were $4,089.9 million against $3,612.9 million a year ago. Income from operations was $357.0 million against $299.7 million a year ago. Income before income taxes was $239.7 million against $231.9 million a year ago. Net income was $269.7 million against $153.4 million a year ago. Earnings per diluted share were $2.42 against $1.27 a year ago. Net cash provided by operating activities was $389.7 million against $394.6 million a year ago. Capital expenditures were $174.5 million against $191.9 million a year ago. Adjusted net income per diluted share was $1.65 against $1.38 a year ago.

The company currently estimates that its adjusted net income per diluted share for the full year 2018 will be in the range of $2.03 to $2.13, as compared to adjusted net income per diluted share for the full year of 2017 of $1.65. Net sales in the metal container business are expected to increase in 2018 as compared to 2017 primarily due to the pass through of higher raw material and other manufacturing costs and the impact from anticipated favorable foreign currency rates. Income from operations in the metal container business is expected to benefit from continued manufacturing efficiencies and the lagged contractual pass through to customers of indexed inflation. Net sales in the closures business are expected to increase in 2018 as compared to 2017 primarily as a result of the benefit of a full year of Dispensing Systems, the pass through of higher raw material and other manufacturing costs, the impact from anticipated favorable foreign currency rates and improved unit volumes. Income from operations in the closures business is expected to increase in 2018 primarily as a result of the benefit of a full year of Dispensing Systems, including expected synergies and the absence of the prior year unfavorable impact from the inventory write-up for purchase accounting, continued manufacturing efficiencies and higher unit volumes. Net sales in the plastic container business are expected to increase in 2018 as compared to the prior year as a result of volume growth and the pass through of higher raw material costs. Income from operations in the plastic container business is expected to benefit from continued manufacturing efficiencies and volume growth, partially offset by costs associated with the start-up of the new plant in Fort Smith, Arkansas. The company expects interest expense to increase in 2018 due to higher average outstanding borrowings as a result of additional borrowings for the acquisition of Dispensing Systems in April 2017 and higher weighted average interest rates due primarily to market rate increases on variable rate debt. The company expects its effective tax rate for 2018 to be approximately 24%, as compared to the effective tax rate for 2017 of 33.8% excluding certain effective tax rate adjustments. The effective tax rate for 2018 reflects the current estimate of the impact from the recently enacted U.S. Tax Cuts and Jobs Act of 2017. The company currently estimates that free cash flow in 2018 will increase approximately 34% to approximately $300 million as compared to $224.1 million in 2017. The expected increase in free cash flow is primarily the result of operating income improvement in each of the businesses, including the impact from a full year of Dispensing Systems, improvements in working capital principally as a result of a significant planned reduction in inventories in the metal container business and the benefit of a lower effective tax rate, partially offset by an increase in interest payments and capital expenditures. Capital expenditures in 2018 to be approximately $200 million.

For the first quarter of 2018, the company is providing an estimate of adjusted net income per diluted share in the range of $0.32 to $0.36, as compared to $0.31 in the first quarter of 2017. The increase over the prior year is due primarily to the inclusion of the Dispensing Systems operations in the first quarter of 2018 and the benefit of a lower effective tax rate, partially offset by higher interest expense, the unfavorable impact of a significantly lower seasonal inventory build than in the prior year period in the metal container business and the unfavorable impact from the lagged pass through of increases in resin costs. Adjusted net income per diluted share excludes rationalization charges, loss on early extinguishment of debt and costs attributed to announced acquisitions.