Silgan Holdings Inc. (Nasdaq:SLGN), a leading supplier of consumer goods packaging products, today reported third quarter 2009 net income of $73.5 million, or $1.91 per diluted share, as compared to third quarter 2008 net income of $52.8 million, or $1.38 per diluted share. Results for the third quarter of 2008 included pre-tax rationalization charges of $2.4 million, or $0.07 per diluted share net of tax which includes the impact of a tax valuation allowance related to the rationalization activity. A reconciliation of net income per diluted share to “adjusted net income per diluted share,” a Non-GAAP financial measure used by the Company, which 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 are very pleased with our consolidated performance as we delivered record adjusted net income per diluted share of $1.91, a 31.7 percent increase over the prior year third quarter,” said Tony Allott, President and CEO. “Our metal food container business benefited from significant year-over-year volume improvements driven primarily by one of the largest pack seasons in recent memory and solid operational performance. Our closures business benefited from effectively managing their costs in the face of ongoing volume softness in the single-serve beverage market. Despite some early signs of volume improvement in select markets, our plastic container business posted disappointing results largely due to the effect of contractual delays in passing through recent resin inflation and inefficiencies experienced as we reacted to volatile demand requirements,” continued Mr. Allott. “Given our strong financial performance year to date, we are raising our full year 2009 earnings estimate of adjusted net income per diluted share to a range of $4.00 to $4.10,” concluded Mr. Allott.

Net sales for the third quarter of 2009 were $1,016.5 million, an increase of $52.2 million, or 5.4 percent, as compared to $964.3 million in 2008. This increase was primarily the result of higher average selling prices in the metal food container business due to the pass through of higher raw material and other manufacturing costs and significantly higher unit volumes in the metal food container business, offset by lower average selling prices in the plastic container business largely attributable to the pass through of lower resin prices, lower volumes in the plastic container and closures businesses and the impact of unfavorable foreign currency translation.

Income from operations for the third quarter of 2009 was $127.9 million as compared to $99.6 million for the third quarter of 2008, and operating margin increased to 12.6 percent from 10.3 percent for the same periods. These increases were primarily attributable to higher unit volumes in the metal food container business, effective cost control and manufacturing efficiencies and lower year-over-year rationalization charges, partially offset by the impact from lower unit volumes in the plastic container and closures businesses, increased pension expense and the unfavorable effect from the lagged pass through of recent resin price increases.

Interest and other debt expense for the third quarter of 2009 was $13.7 million, a decrease of $1.4 million as compared to 2008. This decrease was primarily due to lower average debt balances outstanding in the third quarter of 2009 as compared to the same period in 2008, partially offset by slightly higher interest rates largely as a result of the issuance of $250 million principal amount of 7.25% senior notes in May 2009.

The Company’s effective tax rate for the third quarter of 2009 was 35.6 percent as compared to 37.5 percent in the same period of 2008. The effective tax rate for the third quarter of 2008 was negatively impacted by a $1.2 million valuation allowance against tax positions in Turkey related to the Company’s decision to close the operating facility.

Metal Food Containers

Net sales of the metal food container business were $716.5 million for the third quarter of 2009, an increase of $99.1 million, or 16.1 percent, as compared to $617.4 million in 2008. This increase was primarily due to higher average selling prices as a result of the pass through of higher tin plate and other manufacturing costs and significantly higher unit volumes principally due to the favorable size and timing of the seasonal fruit and vegetable pack.

Income from operations of the metal food container business increased $27.6 million in the third quarter of 2009 to $104.2 million as compared to $76.6 million in 2008, and operating margin increased to 14.5 percent from 12.4 percent over the same periods. These increases were primarily the result of significantly higher unit volumes, better manufacturing efficiencies and ongoing improvements in cost controls, partially offset by higher pension expense.

Closures

Net sales of the closures business were $166.3 million in the third quarter of 2009, a decrease of $18.0 million, or 9.8 percent, as compared to $184.3 million in 2008. This decrease was primarily the result of lower unit volumes largely attributable to continued demand softness in the single-serve beverage markets and unfavorable foreign currency translation.

Income from operations of the closures business for the third quarter of 2009 increased $7.2 million to $24.3 million as compared to $17.1 million in 2008, and operating margin increased to 14.6 percent from 9.3 percent over the same periods. These increases were primarily attributable to the benefits of ongoing cost reduction initiatives, improved manufacturing efficiencies and lower rationalization charges, partially offset by lower unit volumes. Rationalization charges of $2.8 million were recognized in the third quarter of 2008.

Plastic Containers

Net sales of the plastic container business were $133.7 million in the third quarter of 2009, a decrease of $28.9 million, or 17.8 percent, as compared to $162.6 million in 2008. This decrease was principally due to the impact of lower average selling prices as a result of the pass through of lower raw material costs and a modest decline in unit volumes as demand for certain products showed some sign of recovery but overall volumes continued to lag prior year levels. Net sales were also impacted by unfavorable foreign currency translation.

Income from operations of the plastic container business for the third quarter of 2009 was $2.6 million, a decrease of $6.5 million as compared to $9.1 million in 2008, and operating margin decreased to 1.9 percent from 5.6 percent over the same periods. These decreases were primarily attributable to lower unit volumes, the unfavorable effect from the lagged pass through of recent resin price increases, manufacturing inefficiencies created by shorter production runs and challenges in meeting certain increased demand with reduced plant personnel and higher pension expense, partially offset by ongoing cost reductions.

Nine Months

Net income for the first nine months of 2009 was $134.9 million, or $3.51 per diluted share, as compared to net income for the first nine months of 2008 of $107.3 million, or $2.80 per diluted share. Results for the first nine months of 2009 included a loss on early extinguishment of debt of $0.01 per diluted share net of tax and rationalization charges of $0.02 per diluted share net of tax. Results for the first nine months of 2008 included rationalization charges of $0.20 per diluted share net of tax. Adjusted net income per diluted share for the first nine months of 2009 was $3.54 versus $3.00 in the prior year period, an 18.0 percent increase.

Net sales for the first nine months of 2009 decreased $17.9 million, or 0.8 percent, to $2.36 billion as compared to $2.38 billion for the first nine months of 2008. This decrease was primarily due to lower unit volumes in the plastic container and closures businesses, lower average selling prices in the plastic container business largely attributable to the pass through of lower resin prices and unfavorable foreign currency translation, partially offset by higher average selling prices in the metal food container business due to the pass through of higher raw material and other manufacturing costs and higher unit volumes in the metal food container business.

Income from operations for the first nine months of 2009 was $246.5 million, an increase of $32.1 million, or 15.0 percent, from the same period in 2008. This increase was a result of higher unit volumes in our metal food container business, improved manufacturing efficiencies and ongoing cost controls across all businesses and lower rationalization charges. These increases were partially offset by lower unit volumes in the plastic container and closures businesses and higher pension expense. Additionally, income from operations in 2008 benefited from management fee income related to the Brazilian White Cap acquisition. Rationalization charges of $1.5 million in the first nine months of 2009 were primarily related to a reduction in workforce at the closures operating facility in Germany. Rationalization charges in the first nine months of 2008 were $9.8 million.

Interest and other debt expense for the first nine months of 2009 was $37.1 million, a decrease of $9.1 million as compared to the first nine months of 2008. This decrease was primarily attributable to lower outstanding debt balances and higher interest income attributable to the cash on hand during 2009, partially offset by the impact of higher borrowing rates largely resulting from the issuance of $250 million principal amount of 7.25% senior notes in May 2009.

The Company’s effective tax rate for the first nine months of 2009 was 35.6 percent as compared to 36.2 percent in the same period of 2008. The decrease in the effective tax rate is primarily a result of lower average statutory rates in 2009.

Dividend

On September 15, 2009, the Company paid a quarterly cash dividend in the amount of $0.19 per share to holders of record of common stock of the Company on September 1, 2009. This dividend payment aggregated $7.4 million.

Outlook for 2009

The Company is raising its estimate of adjusted net income per diluted share for the full year of 2009 to a range of $4.00 to $4.10. This estimate excludes rationalization charges and loss on early extinguishment of debt. The Company also estimates adjusted net income per diluted share for the fourth quarter of 2009, which excludes rationalization charges, will be in the range of $0.46 to $0.56, as compared to adjusted net income per diluted share of $0.69 in the fourth quarter of 2008 which benefited significantly from the delayed pass through of lower resin costs in the plastic container business and a lower than normal tax rate.

Conference Call

Silgan Holdings Inc. will hold a conference call to discuss the Company’s results for the third quarter of 2009 at 11:00 a.m. eastern time on October 21, 2009. The toll free number for domestic callers is (877) 874-1586, and the number for international callers is (719) 325-4901. For those unable to listen to the live call, a taped rebroadcast will be available through November 4, 2009. To access the rebroadcast, the toll free number for domestic callers is (888) 203-1112, and the number for international callers is (719) 457-0820. The pass code is 9914358.

Silgan Holdings is a leading manufacturer of consumer goods packaging products with annual net sales of approximately $3.1 billion in 2008. Silgan operates 66 manufacturing facilities in North and South America, Europe and Asia. In North America, Silgan is the largest supplier of metal containers for food products and a leading supplier of plastic containers for personal care products. In addition, Silgan is a leading worldwide supplier of metal, composite and plastic vacuum closures for food and beverage products.

Statements included in this press release which are not historical facts are forward looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and the Securities Exchange Act of 1934. Such forward looking statements are made based upon management’s expectations and beliefs concerning future events impacting the Company and therefore involve a number of uncertainties and risks, including, but not limited to, those described in the Company’s Annual Report on Form 10-K for 2008 and other filings with the Securities and Exchange Commission. Therefore, the actual results of operations or financial condition of the Company could differ materially from those expressed or implied in such forward looking statements.