Silgan Holdings lowers FY23 adj. EPS view to $3.30-$3.40 from $3.40-$3.60

Sees FY23 EPS 3.48. The Company has revised its estimate of adjusted net income per diluted share for the FY23 from $3.40-$3.60 to $3.30-$3.40 primarily due to anticipated lower volumes in the Q4 and higher interest expense. This revised estimate compares to record adjusted net income per diluted share for the FY22 of $4.01, which included 9c per diluted share from non-recurring income associated with Russia. Interest expense for 2023 is expected to be approximately 33c per diluted share higher than the prior year primarily due to higher interest rates. Volume in the Dispensing and Specialty Closures and Metal Containers segments for 2023 are now expected to be below record levels achieved in 2022 due to customer destocking in the food and beverage markets initiated late in the second quarter and in adjacent markets in the second half of the year. Custom Containers volumes in 2023 are expected to be approximately 10% below the prior year due to delays in the commercialization of new business and customer destocking programs. The Company now anticipates interest expense before loss on early extinguishment of debt in 2023 of approximately $175M based on the current forward interest rate curve and an effective tax rate for 2023 of approximately 24%. The Company has revised its estimate of free cash flow in 2023 from approximately $375M to $340M primarily due to the revised earnings estimate for the year and estimated cash costs in 2023 associated with the announced cost reduction program including additional working capital to facilitate these actions. This estimate compares to free cash flow of $368.2M in 2022. Capital expenditures are expected to be approximately $230M in 2023.