Standard & Poor's said today that Silgan Holdings Inc.'s (BB-/Stable/--) announcement of 2001 earnings growth (excluding nonrecurring items) and debt reduction are in line with expectations and fully reflected within the current rating and outlook. The earnings growth was largely due to the acquisition of RXI Plastics, however, partially offset by somewhat higher operating costs in the metal food can business. Although Standard & Poor's expects Silgan to gradually benefit from improved pricing in metal food cans, recessionary conditions are likely to slow near-term sales growth of plastic containers for personal care products. In addition, Silgan is expected to use free cash flows for growth initiatives or debt reduction, while maintaining its credit profile....
Companies mentioned in this report are: Silgan Holdings Inc.
Action: S&P Event
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