Business More or Less OK
Although the fourth quarter highlighted some issues in unit volume growth and margins in the plastics business, business at Silgan is more or less going as expected.
Read more here:
http://stocks.investopedia.
Showing posts with label Owens Illinois. Show all posts
Showing posts with label Owens Illinois. Show all posts
Wednesday, February 29, 2012
Investopedia: Wait For Silgan To Get A Little Cheaper
The trouble with consistent performance is that you can't really justify paying a little extra for a stock with the idea that outperformance will redeem that premium over time. Silgan (Nasdaq:SLGN) is definitely one of the best-run packaging companies out there, but it's a stock that pretty much has to be bought right to work out. Consequently, while Silgan is a good name to follow right now, investors new to the name should hold out for a better price before taking the leap.
Business More or Less OK
Although the fourth quarter highlighted some issues in unit volume growth and margins in the plastics business, business at Silgan is more or less going as expected.
Read more here:
http://stocks.investopedia.
Business More or Less OK
Although the fourth quarter highlighted some issues in unit volume growth and margins in the plastics business, business at Silgan is more or less going as expected.
Read more here:
http://stocks.investopedia.
Monday, June 20, 2011
Investopedia: Silgan Sees A Good Deal Crumple
Investors had many good reasons to be enthusiastic about Silgan's (Nasdaq:SLGN) announced merger with Graham Packaging (NYSE:GRM). Not only was the company in place to benefit from significant operating synergies and tax benefits, Graham would have given the company an invaluable plastics packaging business - an increasingly important consideration in a world that seems to be moving away from Silgan's traditional metal packaging.
Unfortunately, Silgan was not the only company to see value in Graham's assets. New Zealand-based Reynolds Group Holdings came in near the eleventh hour and made a counter-offer that Graham's board could not refuse.
The New Deal
Graham informed Silgan and the market that another bidder had emerged and offered $25 in cash for each share of Graham Packaging. That was a significant improvement over the deal Silgan offered - a deal that had been worth about $19.56 at the time of the agreement, but one that incorporated a significant Silgan equity component (meaning that the actual deal value changed every day with Silgan's share price). On a fair like-for-like basis and considering Silgan's share price, Reynolds' offer was ultimately about 14% better and had the added benefit of being an all-cash deal.
To continue reading, please click below:
http://stocks.investopedia.
Unfortunately, Silgan was not the only company to see value in Graham's assets. New Zealand-based Reynolds Group Holdings came in near the eleventh hour and made a counter-offer that Graham's board could not refuse.
The New Deal
Graham informed Silgan and the market that another bidder had emerged and offered $25 in cash for each share of Graham Packaging. That was a significant improvement over the deal Silgan offered - a deal that had been worth about $19.56 at the time of the agreement, but one that incorporated a significant Silgan equity component (meaning that the actual deal value changed every day with Silgan's share price). On a fair like-for-like basis and considering Silgan's share price, Reynolds' offer was ultimately about 14% better and had the added benefit of being an all-cash deal.
To continue reading, please click below:
http://stocks.investopedia.
Wednesday, February 2, 2011
Illinois Tool Works - The Best May Lay Ahead
In many respects, Illinois Tool Works (NYSE:ITW) is both remarkable and bizarre. Illinois Tool Works is a serial acquirer, but instead of wasting shareholder money on executive vanity products, the company has a record of doing deals that seem to build value. What's more, the company operates in a lot of businesses that are widely considered to be commoditized, and yet the company maintains high market share, high margins and high returns on capital. In other words, Illinois Tool Works seems to defy a lot of the so-called rules about how big companies operate.
The Quarter that Was
Like many other industrial conglomerates ranging from Dover (NYSE:DOV) to Danaher (NYSE:DHR), to United Technologies (NYSE:UTX), Illinois Tool Works has been enjoying a solid rebound in its overall business. For the company's fourth quarter, sales rose 11% as reported, with organic sales growth of better than 9%. Top-line growth was led by large segments like packaging and power systems/electronics, with organic growth in excess of 12% and 21%.
Although revenue growth is ticking along nicely, the profitability of the business is not doing quite as well by comparison. The company's operating margin did improve from the year-ago period (up to 13.9% from 12.7%), but the improvement was less than expected and the company did miss earnings (even with a lower-than-expected tax rate kicking in a few extra cents per share).
Nothing really stands out as an obvious source of disappointment, though, and the quarter is hardly a disaster. That said, the company did see a decline in gross margin and the ongoing price pressure in metals, energy, and other basic commodity inputs is not going to help matters.
Please follow this link for the full piece:
http://stocks.investopedia.
The Quarter that Was
Like many other industrial conglomerates ranging from Dover (NYSE:DOV) to Danaher (NYSE:DHR), to United Technologies (NYSE:UTX), Illinois Tool Works has been enjoying a solid rebound in its overall business. For the company's fourth quarter, sales rose 11% as reported, with organic sales growth of better than 9%. Top-line growth was led by large segments like packaging and power systems/electronics, with organic growth in excess of 12% and 21%.
Although revenue growth is ticking along nicely, the profitability of the business is not doing quite as well by comparison. The company's operating margin did improve from the year-ago period (up to 13.9% from 12.7%), but the improvement was less than expected and the company did miss earnings (even with a lower-than-expected tax rate kicking in a few extra cents per share).
Nothing really stands out as an obvious source of disappointment, though, and the quarter is hardly a disaster. That said, the company did see a decline in gross margin and the ongoing price pressure in metals, energy, and other basic commodity inputs is not going to help matters.
Please follow this link for the full piece:
http://stocks.investopedia.
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