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SILGAN . HOLDINGS INC . Silgan Announces Third Quarter Earnings and Raises Estimate of Cash Generation ; Anticipates Continued Growth In 2022 October 27 , 2021 Highlights • Net income of $ 0.96 per diluted share ● Adjusted net income of $ 1.02 per diluted share • Achieved record third quarter volume in Dispensing and Specialty Closures • Achieved highest ever volumes in Metal Containers • Increased free cash flow guidance to $ 450 million , or $ 4.05 per diluted share • Completed the acquisitions of Gateway and Unicep to further expand Dispensing and Specialty Closures ● Completed the acquisition of Easytech , a European metal ends business , on October 1 , 2021 STAMFORD , Conn .-- ( BUSINESS WIRE ) -- Oct . 27 , 2021-- Silgan Holdings Inc. ( Nasdaq : SLGN ) , a leading supplier of sustainable rigid packaging solutions for consumer goods products , today reported third quarter 2021 net income of $ 106.3 million , or $ 0.96 per diluted share , as compared to third quarter 2020 net income of $ 112.9 million , or $ 1.01 per diluted share . Adjusted net income per diluted share for the third quarter of 2021 was $ 1.02 , after adjustments increasing net income per diluted share by $ 0.06 . Adjusted net income per diluted share for the third quarter of 2020 was $ 1.04 , after adjustments increasing net income per diluted share by $ 0.03 . A reconciliation of net income per diluted share to " adjusted net income per diluted share , " a Non - GAAP financial measure used by the Company that adjusts net income per diluted share for certain items , can be found in Tables A and B at the back of this press release . " We delivered third quarter 2021 adjusted earnings per diluted share of $ 1.02 , which was more than 30 percent above any other third quarter in Company history with the exception of the pandemic driven third quarter of 2020. We were able to sustain performance near the prior year's record level as demand for many of our products remains exceptionally high . Record volumes in our Dispensing and Specialty Closures and Metal Container segments and tremendous operating performance helped offset unprecedented inflation and continued supply chain and labor challenges , while strong year - to - date volumes in our Custom Container segment remain above pre - pandemic levels , " said Adam Greenlee , President and CEO . " Sustained strong volumes for the beauty , fragrance , food and beverage markets in our Dispensing and Specialty Closures segment were more than offset by the unfavorable impact of significant raw material inflation and the contractual lags in passing these increased costs of over $ 10 million on to our customers . Our Metal Container segment achieved record volume levels for any quarter in Company history driven primarily by strong seasonal vegetable and pet food markets , but continued to be negatively impacted by higher production costs and inefficiencies resulting from supply disruptions and labor challenges throughout the entire supply chain . Strong operating performance and effective cost controls in our Custom Container segment helped offset lower volumes as compared to the pandemic driven record volumes last year , " continued Mr. Greenlee . " In addition , we would like to welcome our newest employees who join the Silgan team from our recently announced acquisitions . We look forward to successfully integrating these businesses and offering our expanded product portfolio and capabilities to our new and shared customers , " said Mr. Greenlee . " Given our performance to date and our expectation for continued supply chain and labor challenges during the fourth quarter , we are tightening our estimate of full year 2021 adjusted earnings per diluted share from a range of $ 3.30 to $ 3.45 to a range of $ 3.30 to $ 3.40 , which represents a 9.5 percent increase at the midpoint over record 2020 levels . We are also increasing our free cash flow estimate to approximately $ 450 million from $ 400 million primarily due to anticipated lower working capital and the utilization of tax benefits from the recent acquisitions . As we begin to look forward to 2022 , while early in the process , we anticipate another year of significant earnings growth which is expected to exceed the growth rate in 2021 before including the impact from our recent acquisitions , " concluded Mr. Greenlee . Net sales for the third quarter of 2021 were $ 1.65 billion , an increase of $ 162.6 million , or 10.9 percent , as compared to the same period in the prior year . This increase was the result of higher net sales in all segments . Income before interest and income taxes for the third quarter of 2021 was $ 167.9 million , a decrease of $ 6.1 million , or 3.5 percent , as compared to $ 174.0 million for the third quarter of 2020 , and margins decreased to 10.2 percent from 11.7 percent for the same periods . The decrease in income before interest and income taxes was primarily the result of higher costs attributed to announced acquisitions and lower income in the Dispensing and Specialty Closures segment , partially offset by higher income in the Custom Container segment . Costs attributed to announced acquisitions for the third quarter of 2021 were $ 4.1 million for the acquisitions of Gateway Plastics and Unicep Packaging in September 2021 and Easytech Closures S.p.A in October 2021. Costs attributed to announced acquisitions were $ 0.7 million for the third quarter of 2020. Rationalization charges were $ 2.3 million and $ 2.5 million in the third quarters of 2021 and 2020 , respectively . Interest and other debt expense for the third quarter of 2021 was $ 27.0 million , a decrease of $ 0.7 million as compared to the third quarter of 2020 . This decrease was primarily due to lower weighted average interest rates during the current quarter due to lower variable market rates . The effective tax rates were 24.6 percent and 22.9 percent for the third quarters of 2021 and 2020 , respectively . The effective tax rate in the third quarter of 2020 was favorably impacted by an audit period expiration .