UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): September 3, 2009 (September 1, 2009)
GREIF, INC.
(Exact name of registrant as specified in its charter)
| Delaware | 001-00566 | 31-4388903 | ||
| (State or other jurisdiction of incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
425 Winter Road, Delaware, Ohio |
43015 |
|
| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code: (740) 549-6000
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
| o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
| o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
| o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Section 2 — Financial Information
Item 2.02. Results of Operations and Financial Condition.
On September 2, 2009, Greif, Inc. (the “Company”) issued a press release (the “Earnings Release”)
announcing the financial results for its third quarter ended July 31, 2009. The full text of the
Earnings Release is attached as Exhibit 99.1 to this Current Report on Form 8-K.
The Earnings Release included the following non-GAAP financial measures (the “non-GAAP Measures”):
(i) net income before restructuring charges, restructuring-related inventory charges and timberland
disposals, net on a consolidated basis; (ii) diluted earnings per Class A share and per Class B
share before restructuring charges, restructuring-related inventory charges and timberland
disposals, net on a consolidated basis; (iii) operating profit before restructuring charges,
restructuring-related inventory charges and timberland disposals, net on a consolidated basis;
(iv) operating profit before restructuring charges with respect to the Company’s Paper Packaging
segment; (v) operating profit before restructuring charges and restructuring-related inventory
charges with respect to the Company’s Industrial Packaging segment and (vi) operating profit before
restructuring charges and timberland disposals, net with respect to the Company’s Timber segment.
Net income before restructuring charges, restructuring-related inventory charges and timberland
disposals, net on a consolidated basis is equal to GAAP net income plus restructuring charges and
restructuring-related inventory charges less timberland disposals, net, net of tax, on a
consolidated basis. Diluted earnings per Class A share and per Class B share before restructuring
charges, restructuring-related inventory charges and timberland disposals, net on a consolidated
basis is equal to GAAP diluted earnings per Class A share and per Class B share plus restructuring
charges and restructuring-related inventory charges less timberland disposals, net, net of tax, on
a consolidated basis. Operating profit before restructuring charges, restructuring-related
inventory charges and timberland disposals, net on a consolidated basis is equal to GAAP operating
profit plus restructuring charges and restructuring-related inventory charges less timberland
disposals, net on a consolidated basis. Operating profit before restructuring charges with respect
to the Company’s Paper Packaging segment is equal to that segment’s GAAP operating profit plus that
segment’s restructuring charges. Operating profit before restructuring charges and
restructuring-related inventory charges with respect to the Company’s Industrial Packaging segment
is equal to that segment’s GAAP operating profit plus that segment’s restructuring charges and
restructuring-related inventory charges. Operating profit before restructuring charges and
timberland disposals, net with respect to the Company’s Timber segment is equal to that segment’s
GAAP operating profit plus that segment’s restructuring charges less timberland disposals, net.
The Company discloses the non-GAAP Measures described in Items (i) through (vi), above, because
management believes that these non-GAAP Measures are a better indication of the Company’s
operational performance than GAAP net income, diluted earnings per Class A share and per Class B
share and operating profit since they exclude restructuring charges and restructuring-related
inventory charges, which are not representative of ongoing operations, and timberland disposals,
net, which are volatile from period to period. These non-GAAP Measures provide a more stable
platform on which to compare the historical performance of the Company.
Section 5 — Corporate Governance and Management
| Item 5.02 | Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. |
| (d) | On September 1, 2009, the Company’s Board of Directors elected John W. McNamara as a director of the Company to fill a vacancy on the Board and to serve until the Company’s next annual meeting of stockholders (expected to occur on February 22, 2010) and until his successor is elected and qualified. |
There are no arrangements or understandings between Mr. McNamara and any other person pursuant
to which Mr. McNamara was selected as a director of the Company.
Mr. McNamara is the nephew of Judith Hook, who is also a director of the Company.
The announcement of Mr. McNamara’s election as director is attached as Exhibit 99.2 to this
Current Report on Form 8-K.
Section 7. Regulation FD
Item 7.01. Regulation FD Disclosure.
The Company’s management conducted a conference call on September 3, 2009, at approximately 10:00 a.m., EDT, to review the Company’s financial results for its three- and nine-month periods ended July 31, 2009, and to respond to questions from interested investors and financial analysts. During the conference call, Donald S. Huml, Chief Financial Officer, commented that there was a recent uptick in sales volumes during July that continued into August. Michael J. Gasser, Chairman and Chief Executive Officer also stated that the comparison of sales volumes from July to August was as follows: Europe, Asia and North America had volume increases in the mid-single digit range; and Latin America had volume increases in the low double digit range.
Section 9 — Financial Statements and Exhibits
Item 9.01. Financial Statements and Exhibits.
(c) Exhibits.
| Exhibit No. | Description | |||
| 99.1 | Press release issued by Greif, Inc. on September 2, 2009,
announcing the financial results for its third quarter ended
July 31, 2009. |
|||
| 99.2 | Press release issued by Greif, Inc. on September 1, 2009,
announcing the election of John W. McNamara as a director. |
|||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned hereunto duly authorized.
| GREIF, INC. |
||||
| Date: September 3, 2009 | By: | /s/ Donald S. Huml | ||
| Donald S. Huml, | ||||
| Executive Vice President and Chief Financial Officer | ||||
EXHIBIT INDEX
| Exhibit No. | Description | |||
| 99.1 | Press release issued by Greif, Inc. on September 2, 2009,
announcing the financial results for its third quarter ended
July 31, 2009. |
|||
| 99.2 | Press release issued by Greif, Inc. on September 1, 2009,
announcing the election of John W. McNamara as a director. |
|||
EXHIBIT 99.1
Greif, Inc. Reports Third Quarter 2009 Results
| • | Net sales decreased 31 percent (24 percent excluding the impact of foreign currency translation) to $717.6 million in the third quarter of 2009 from $1,034.1 million in the third quarter of 2008. |
| • | Net income before special items, as defined below, was $51.6 million ($0.88 per diluted Class A share) in the third quarter of 2009 compared to $69.5 million ($1.18 per diluted Class A share) in the third quarter of 2008. GAAP net income was $39.7 million ($0.68 per diluted Class A share) and $64.6 million ($1.10 per diluted Class A share) in the third quarter of 2009 and 2008, respectively. |
DELAWARE, Ohio (Sept. 2, 2009) – Greif, Inc. (NYSE: GEF, GEF.B), a global leader in industrial
packaging products and services, today announced results for its third fiscal quarter, which ended
July 31, 2009.
Michael J. Gasser, chairman and chief executive officer, said, “Our third quarter 2009 results
benefited from significant permanent cost reduction actions and gradually improving volumes,
especially during the final month of the quarter. We expect to achieve savings of at least $150
million in fiscal 2009 due to Greif Business System (GBS) and accelerated GBS initiatives and
specific contingency actions. We believe these factors will benefit our fourth quarter results and
position us for a stronger performance in fiscal 2010.”
Gasser continued, “We continue to execute our disciplined growth strategy. During the third
quarter, we increased the Company’s financial capacity and flexibility through the issuance of new
10-year Senior Notes. Two small tuck-in acquisitions were completed during the quarter and
additional opportunities are being pursued to further strengthen Greif’s product portfolio and
global footprint.”
Special Items and GAAP to Non-GAAP Reconciliations
Special items are as follows: (i) for the third quarter of 2009, restructuring charges of $10.3
million ($10.7 million net of tax) and restructuring-related inventory charges of $0.8 million
($1.2 million net of tax); and (ii) for third quarter of 2008, restructuring charges of $6.6
million ($5.0 million net of tax) and gain on timberland disposals, net of $0.2 million ($0.1
million net of tax). Reconciliations of the differences between all non-GAAP financial measures
used in this release with the most directly comparable GAAP financial measures are included in the
financial schedules that are a part of this release.
Consolidated Results
Net sales decreased 31 percent (24 percent excluding the impact of foreign currency translation) to
$717.6 million in the third quarter of 2009 compared to a record $1,034.1 million in the third
quarter of 2008. The $316.5 million decline was due to lower sales in Industrial Packaging ($258.2
million), Paper Packaging ($57.4 million) and Timber ($0.9 million). The 24 percent
constant-currency decrease was due to lower sales volumes and lower selling prices due to the
pass-through of lower raw material costs.
Operating profit before special items was $81.3 million for the third quarter of 2009 compared to
$107.7 million for the third quarter of 2008. The lower operating results for Industrial Packaging
($23.6 million) and Paper Packaging ($5.1 million), as compared to the same period last year, were
due to lower sales volumes and lower prices, significantly offset by cost reductions achieved under
the previously announced incremental Greif Business System (GBS) and accelerated GBS initiatives
and specific contingency actions. Timber operating profit improved by $2.3 million as a result of a
single special use property sale in the third quarter of 2009. GAAP operating profit was $70.2
million and $101.3 million in the third quarter of 2009 and 2008, respectively.
Net income before special items was $51.6 million for the third quarter of 2009 compared to $69.5
million for the third quarter of 2008. Diluted earnings per share before special items were $0.88
compared to $1.18 per Class A share and $1.33 compared to $1.79 per Class B share for the third
quarter of 2009 and 2008, respectively. The Company had GAAP net income of $39.7 million, or $0.68
per diluted Class A share and $1.03 per diluted Class B share, in the third quarter of 2009
compared to GAAP net income of $64.6 million, or $1.10 per diluted Class A share and $1.67 per
diluted Class B share, in the third quarter of 2008.
Business Group Results
Industrial Packaging net sales decreased 30 percent (22 percent excluding the impact of foreign
currency translation) to $594.2 million in the third quarter of 2009 from $852.4 million in the
third quarter of 2008 primarily due to lower sales volumes and lower selling prices. Operating
profit before special items decreased to $69.3 million in the third quarter of 2009 from $92.9
million in the third quarter of 2008. The $23.6 million decrease was due to lower net sales,
partially offset by lower raw material costs. Labor, transportation and energy costs were also
lower as compared to the same quarter last year. This segment continues to benefit from GBS and
specific contingency initiatives. GAAP operating profit was $58.5 million and $88.1 million in the
third quarter of 2009 and 2008, respectively.
Paper Packaging net sales were $120.2 million in the third quarter of 2009 compared to $177.6
million in the third quarter of 2008. This decrease was primarily due to lower sales volumes and
lower containerboard selling prices compared to the same quarter of the previous year. Operating
profit before special items decreased to $7.7 million in the third quarter of 2009 from $12.8
million in the third quarter of 2008. The $5.1 million decrease was due to lower net sales,
partially offset by lower raw material costs, especially for old corrugated containers. In
addition, labor, transportation and energy costs were lower as compared to the same quarter of the
previous year. This segment continues to benefit from GBS and specific contingency initiatives.
GAAP operating profit was $7.4 million and $11.0 million in the third quarter of 2009 and 2008,
respectively.
Timber net sales were $3.2 million and $4.1 million in the third quarter of 2009 and 2008,
respectively. Operating profit before special items was $4.3 million in the third quarter of 2009
compared to $2.0 million in the third quarter of 2008. Included in these amounts were operating
profits from the sale of special use properties (e.g., surplus, higher and better use, and
development properties) of $3.9 million, including $3.5 million from a property sale, in the third
quarter of 2009 and $0.9 million in the third quarter of 2008. GAAP operating profit was $4.3
million and $2.2 million in the third quarter of 2009 and 2008, respectively.
Senior Notes
In the third quarter of 2009, the Company issued $250 million aggregate principal amount of 7 3/4
percent Senior Notes due 2019 in a Rule 144A and Regulation S offering. The net proceeds from the
issuance of the new Senior Notes are to be used for general corporate purposes, including the
repayment of amounts outstanding under its revolving credit facility, without any permanent
reduction to the commitments.
Other Financial Information
The Company’s effective tax rate was 23.6 percent for the third quarter of 2009 compared to 23.3
percent for the same period last year. This was attributable to an increase in the proportion of
earnings in the United States compared to earnings outside the United States, partially offset by
alternative fuel credit benefits.
Capital expenditures were $27.9 million for the third quarter of 2009 compared with capital
expenditures of $37.7 million, excluding timberland purchases of $0.2 million, for the third
quarter of 2008. Fiscal 2009 capital expenditures, excluding timberland purchases, are expected to
be in the range of $95 million to $100 million, which is below or in-line with anticipated
depreciation, depletion and amortization expense for the year.
On Sept. 1, 2009, the Board of Directors declared quarterly cash dividends of $0.38 per share of
Class A Common Stock and $0.57 per share of Class B Common Stock. These dividends are payable on
Oct. 1, 2009 to stockholders of record at close of business on Sept. 18, 2009.
Greif Business System (GBS) and Accelerated Initiatives
In December 2008, the Company announced specific plans to address the adverse impact to its
businesses resulting from the sharp decline of the global economy, which began in the Company’s
fourth quarter of 2008. Management is aggressively implementing plans that include the following
initiatives:
| • | Operational Excellence and Global Sourcing initiatives, which are expected to produce savings of approximately $50 million during fiscal 2009. |
| • | Active portfolio management, further administrative excellence activities, a hiring and salary freeze, and curtailed discretionary spending. These actions are expected to result in an additional $100 million of savings during fiscal 2009. |
The incremental GBS, accelerated GBS and contingency initiatives are ahead of their implementation
schedule and are expected to capture at least $150 million in annual savings in fiscal 2009.
As a result of these initiatives, the Company expects to record restructuring charges of
approximately $78 million during fiscal 2009. During the third quarter of 2009, the Company
recorded $10.3 million of restructuring charges. The year-to-date restructuring and other cost
reduction activities included the closure of 16 facilities and the elimination of more than 2,000
operating and administrative positions.
Company Outlook
The Company has implemented significant cost reduction plans during fiscal 2009 to mitigate the
impact of lower volumes attributable to the global economic recession. Positive contributions have
been achieved during the first nine months of fiscal 2009 and substantial cost savings are expected
to be realized during the fourth quarter. Further cyclical improvements in sales volumes are also
expected to occur in the fourth quarter of 2009. Based on these factors, the Company’s fiscal 2009
earnings guidance is in the range of $3.25 to $3.50 per Class A share.
Conference Call
The Company will host a conference call to discuss the third quarter of 2009 results on Sept. 3,
2009, at 10 a.m. Eastern Time (ET). To participate, domestic callers should call 877-485-3107 and
ask for the Greif conference call. The number for international callers is +1 201-689-8427. Phone
lines will open at 9:50 a.m. ET. The conference call will also be available through a live webcast,
including slides, which can be accessed at www.greif.com. A replay of the conference call will be
available on the Company’s website in the investor center approximately one hour following the
call.
About Greif
Greif is a world leader in industrial packaging products and services. The Company produces steel,
plastic, fibre, corrugated and multiwall containers, packaging accessories and containerboard, and
provides blending and packaging services for a wide range of industries. Greif also manages timber
properties in North America. The Company is strategically positioned in more than 45 countries to
serve global as well as regional customers. Additional information is on the Company’s website at
www.greif.com.
Forward-Looking Statements
All statements other than statements of historical facts included in this news release, including,
without limitation, statements regarding the Company’s future financial position, business
strategy, budgets, projected costs, goals and plans and objectives of management for future
operations, are forward-looking statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements generally can be identified by the use of
forward-looking terminology such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,”
“project,” “believe,” “continue,” “on track” or “target” or the negative thereof or variations
thereon or similar terminology. All forward-looking statements made in this news release are based
on information currently available to management. Although the Company believes that the
expectations reflected in forward-looking statements have a reasonable basis, the Company can give
no assurance that these expectations will prove to be correct. Forward-looking statements are
subject to risks and uncertainties that could cause actual events or results to differ materially
from those expressed in or implied by the statements. Such risks and uncertainties that might cause
a difference include, but are not limited to: general economic and business conditions, including a
prolonged or substantial economic downturn; the availability of the credit markets to our customers
and suppliers, as well as the Company; changing trends and demands in the industries in which the
Company competes, including industry over-capacity; industry competition; the continuing
consolidation of the Company’s customer base for its industrial packaging, containerboard and
corrugated products; political instability in those foreign countries where the Company
manufactures and sells its products; foreign currency fluctuations and devaluations; availability
and costs of raw materials for the manufacture of the Company’s products, particularly steel, resin
and old corrugated containers; price fluctuations in energy costs; costs associated with litigation
or claims against the Company pertaining to environmental, safety and health, product liability and
other matters; work stoppages and other labor relations matters; property loss resulting from wars,
acts of terrorism or natural disasters; the Company’s ability to integrate its newly acquired
operations effectively with its existing business; the Company’s ability to achieve improved
operating efficiencies and capabilities; the Company’s ability to effectively embed and realize
improvements from the Greif Business System; the frequency and volume of sales of the Company’s
timber, timberland and special use timberland; and the deviation of actual results from the
estimates and/or assumptions used by the Company in the application of its significant accounting
policies. These and other risks and uncertainties that could materially affect the Company’s
consolidated financial results are further discussed in its filings with the Securities and
Exchange Commission, including its Form 10-K for the year ended Oct. 31, 2008. The Company assumes
no obligation to update any forward-looking statements.
GREIF, INC. AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF INCOME
UNAUDITED
(Dollars and shares in millions, except per share amounts)
CONSOLIDATED STATEMENTS OF INCOME
UNAUDITED
(Dollars and shares in millions, except per share amounts)
| Three months ended | Nine months ended | |||||||||||||||
| July 31, | July 31, | |||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
Net sales |
$ | 717.6 | $ | 1,034.1 | $ | 2,031.7 | $ | 2,798.4 | ||||||||
Cost of products sold |
575.0 | 841.2 | 1,674.5 | 2,298.0 | ||||||||||||
Gross profit |
142.6 | 192.9 | 357.2 | 500.4 | ||||||||||||
Selling, general and administrative expenses |
67.4 | 88.1 | 191.5 | 252.0 | ||||||||||||
Restructuring charges |
10.3 | 6.6 | 57.7 | 24.4 | ||||||||||||
Asset disposals, net |
5.3 | 3.1 | 9.8 | 53.0 | ||||||||||||
Operating profit |
70.2 | 101.3 | 117.8 | 277.0 | ||||||||||||
Interest expense, net |
12.1 | 13.1 | 37.7 | 38.2 | ||||||||||||
Debt extinguishment charges |
— | — | 0.8 | — | ||||||||||||
Other income (expense), net |
(4.3 | ) | (2.1 | ) | (4.1 | ) | (9.2 | ) | ||||||||
Income before income tax expense and
equity earnings and minority interests |
53.8 | 86.1 | 75.2 | 229.6 | ||||||||||||
Income tax expense |
12.7 | 20.1 | 19.7 | 53.5 | ||||||||||||
Equity earnings and minority interests |
(1.4 | ) | (1.4 | ) | (2.4 | ) | (2.2 | ) | ||||||||
Net income |
$ | 39.7 | $ | 64.6 | $ | 53.1 | $ | 173.9 | ||||||||
Basic earnings per share: |
||||||||||||||||
Class A Common Stock |
$ | 0.68 | $ | 1.11 | $ | 0.92 | $ | 2.99 | ||||||||
Class B Common Stock |
$ | 1.03 | $ | 1.67 | $ | 1.37 | $ | 4.48 | ||||||||
Diluted earnings per share: |
||||||||||||||||
Class A Common Stock |
$ | 0.68 | $ | 1.10 | $ | 0.92 | $ | 2.95 | ||||||||
Class B Common Stock |
$ | 1.03 | $ | 1.67 | $ | 1.37 | $ | 4.48 | ||||||||
Earnings per share were calculated using
the following number of shares: |
||||||||||||||||
Basic earnings per share: |
||||||||||||||||
Class A Common Stock |
24.4 | 24.0 | 24.3 | 23.9 | ||||||||||||
Class B Common Stock |
22.5 | 22.7 | 22.5 | 22.9 | ||||||||||||
Diluted earnings per share: |
||||||||||||||||
Class A Common Stock |
24.7 | 24.5 | 24.6 | 24.4 | ||||||||||||
Class B Common Stock |
22.5 | 22.7 | 22.5 | 22.9 | ||||||||||||
GREIF, INC. AND SUBSIDIARY COMPANIES
GAAP TO NON-GAAP RECONCILIATION
CONSOLIDATED STATEMENTS OF INCOME
UNAUDITED
(Dollars in millions, except per share amounts)
GAAP TO NON-GAAP RECONCILIATION
CONSOLIDATED STATEMENTS OF INCOME
UNAUDITED
(Dollars in millions, except per share amounts)
| Three months ended July 31, 2009 | Three months ended July 31, 2008 | |||||||||||||||||||||||
| Diluted per share amounts | Diluted per share amounts | |||||||||||||||||||||||
| Class A | Class B | Class A | Class B | |||||||||||||||||||||
GAAP – operating profit |
$ | 70.2 | $ | 101.3 | ||||||||||||||||||||
Restructuring charges |
10.3 | 6.6 | ||||||||||||||||||||||
Restructuring-related inventory charges |
0.8 | — | ||||||||||||||||||||||
Timberland disposals, net |
— | (0.2 | ) | |||||||||||||||||||||
Non-GAAP – operating profit before
restructuring charges,
restructuring-related inventory charges
and timberland disposals, net |
$ | 81.3 | $ | 107.7 | ||||||||||||||||||||
GAAP – net income |
$ | 39.7 | $ | 0.68 | $ | 1.03 | $ | 64.6 | $ | 1.10 | $ | 1.67 | ||||||||||||
Restructuring charges, net of tax |
10.7 | 0.18 | 0.27 | 5.0 | 0.08 | 0.12 | ||||||||||||||||||
Restructuring-related inventory
charges, net of tax |
1.2 | 0.02 | 0.03 | — | — | — | ||||||||||||||||||
Timberland disposals, net of tax |
— | — | — | (0.1 | ) | — | — | |||||||||||||||||
Non-GAAP – net income before
restructuring charges,
restructuring-related inventory charges
and timberland disposals, net |
$ | 51.6 | $ | 0.88 | $ | 1.33 | $ | 69.5 | $ | 1.18 | $ | 1.79 | ||||||||||||
| Nine months ended July 31, 2009 | Nine months ended July 31, 2008 | |||||||||||||||||||||||
| Diluted per share amounts | Diluted per share amounts | |||||||||||||||||||||||
| Class A | Class B | Class A | Class B | |||||||||||||||||||||
GAAP – operating profit |
$ | 117.8 | $ | 277.0 | ||||||||||||||||||||
Restructuring charges |
57.7 | 24.4 | ||||||||||||||||||||||
Restructuring-related inventory charges |
10.1 | — | ||||||||||||||||||||||
Timberland disposals, net |
— | (0.3 | ) | |||||||||||||||||||||
Non-GAAP – operating profit before
restructuring charges,
restructuring-related inventory charges
and timberland disposals, net |
$ | 185.6 | $ | 301.1 | ||||||||||||||||||||
GAAP – net income |
$ | 53.1 | $ | 0.92 | $ | 1.37 | $ | 173.9 | $ | 2.95 | $ | 4.48 | ||||||||||||
Restructuring charges, net of tax |
42.7 | 0.73 | 1.11 | 18.7 | 0.31 | 0.49 | ||||||||||||||||||
Restructuring-related inventory
charges, net of tax |
7.5 | 0.13 | 0.19 | — | — | — | ||||||||||||||||||
Debt extinguishment charges, net of tax |
0.6 | 0.01 | 0.01 | — | — | — | ||||||||||||||||||
Timberland disposals, net of tax |
— | — | — | (0.3 | ) | — | (0.01 | ) | ||||||||||||||||
Non-GAAP – net income before
restructuring charges,
restructuring-related inventory
charges, debt extinguishment charges
and timberland disposals, net |
$ | 103.9 | $ | 1.79 | $ | 2.68 | $ | 192.3 | $ | 3.26 | $ | 4.96 | ||||||||||||
GREIF, INC. AND SUBSIDIARY COMPANIES
SEGMENT DATA
UNAUDITED
(Dollars in millions)
SEGMENT DATA
UNAUDITED
(Dollars in millions)
| Three months ended | Nine months ended | |||||||||||||||
| July 31, | July 31, | |||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
Net sales |
||||||||||||||||
Industrial Packaging |
$ | 594.2 | $ | 852.4 | $ | 1,650.8 | $ | 2,271.7 | ||||||||
Paper Packaging |
120.2 | 177.6 | 368.6 | 509.8 | ||||||||||||
Timber |
3.2 | 4.1 | 12.3 | 16.9 | ||||||||||||
Total |
$ | 717.6 | $ | 1,034.1 | $ | 2,031.7 | $ | 2,798.4 | ||||||||
Operating profit |
||||||||||||||||
Operating profit before restructuring charges,
restructuring-related inventory charges and
timberland disposals, net: |
||||||||||||||||
Industrial Packaging |
$ | 69.3 | $ | 92.9 | $ | 132.3 | $ | 235.3 | ||||||||
Paper Packaging |
7.7 | 12.8 | 43.4 | 47.3 | ||||||||||||
Timber |
4.3 | 2.0 | 9.9 | 18.5 | ||||||||||||
Operating profit before restructuring
charges, restructuring-related inventory
charges and timberland disposals, net |
81.3 | 107.7 | 185.6 | 301.1 | ||||||||||||
Restructuring charges: |
||||||||||||||||
Industrial Packaging |
10.0 | 4.8 | 54.8 | 21.0 | ||||||||||||
Paper Packaging |
0.3 | 1.8 | 2.8 | 3.3 | ||||||||||||
Timber |
— | — | 0.1 | 0.1 | ||||||||||||
Restructuring charges |
10.3 | 6.6 | 57.7 | 24.4 | ||||||||||||
Restructuring-related inventory charges: |
||||||||||||||||
Industrial Packaging |
0.8 | — | 10.1 | — | ||||||||||||
Timberland disposals, net: |
||||||||||||||||
Timber |
— | 0.2 | — | 0.3 | ||||||||||||
Total |
$ | 70.2 | $ | 101.3 | $ | 117.8 | $ | 277.0 | ||||||||
Depreciation, depletion and amortization expense |
||||||||||||||||
Industrial Packaging |
$ | 18.0 | $ | 18.4 | $ | 53.1 | $ | 54.5 | ||||||||
Paper Packaging |
6.2 | 7.1 | 19.6 | 20.2 | ||||||||||||
Timber |
0.8 | 0.8 | 1.9 | 4.3 | ||||||||||||
Total |
$ | 25.0 | $ | 26.3 | $ | 74.6 | $ | 79.0 | ||||||||
GREIF, INC. AND SUBSIDIARY COMPANIES
GEOGRAPHIC DATA
UNAUDITED
(Dollars in millions)
GEOGRAPHIC DATA
UNAUDITED
(Dollars in millions)
| Three months ended | Nine months ended | |||||||||||||||
| July 31, | July 31, | |||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
Net sales |
||||||||||||||||
North America |
$ | 374.7 | $ | 530.3 | $ | 1,130.0 | $ | 1,456.1 | ||||||||
Europe, Middle East and Africa |
233.5 | 365.2 | 608.2 | 972.3 | ||||||||||||
Other |
109.4 | 138.6 | 293.5 | 370.0 | ||||||||||||
Total |
$ | 717.6 | $ | 1,034.1 | $ | 2,031.7 | $ | 2,798.4 | ||||||||
Operating profit |
||||||||||||||||
Operating profit before restructuring
charges, restructuring-related
inventory charges and timberland
disposals, net: |
||||||||||||||||
North America |
$ | 35.8 | $ | 47.4 | $ | 133.4 | $ | 128.2 | ||||||||
Europe, Middle East and Africa |
35.6 | 46.1 | 49.0 | 102.4 | ||||||||||||
Other |
9.9 | 14.2 | 3.2 | 70.5 | ||||||||||||
Operating profit before
restructuring charges and timberland
disposals, net |
81.3 | 107.7 | 185.6 | 301.1 | ||||||||||||
Restructuring charges |
10.3 | 6.6 | 57.7 | 24.4 | ||||||||||||
Restructuring-related inventory charges |
0.8 | — | 10.1 | — | ||||||||||||
Timberland disposals, net |
— | 0.2 | — | 0.3 | ||||||||||||
Total |
$ | 70.2 | $ | 101.3 | $ | 117.8 | $ | 277.0 | ||||||||
GREIF, INC. AND SUBSIDIARY COMPANIES
GAAP TO NON-GAAP RECONCILIATION
SEGMENT DATA
UNAUDITED
(Dollars in millions)
GAAP TO NON-GAAP RECONCILIATION
SEGMENT DATA
UNAUDITED
(Dollars in millions)
| Three months ended | Nine months ended | |||||||||||||||
| July 31, | July 31, | |||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
Industrial Packaging |
||||||||||||||||
GAAP – operating profit |
$ | 58.5 | $ | 88.1 | $ | 67.4 | $ | 214.3 | ||||||||
Restructuring charges |
10.0 | 4.8 | 54.8 | 21.0 | ||||||||||||
Restructuring-related inventory charges |
0.8 | — | 10.1 | — | ||||||||||||
Non-GAAP – operating profit before restructuring
charges and restructuring-related inventory charges |
$ | 69.3 | $ | 92.9 | $ | 132.3 | $ | 235.3 | ||||||||
Paper Packaging |
||||||||||||||||
GAAP – operating profit |
$ | 7.4 | $ | 11.0 | $ | 40.6 | $ | 44.0 | ||||||||
Restructuring charges |
0.3 | 1.8 | 2.8 | 3.3 | ||||||||||||
Non-GAAP – operating profit before restructuring
charges |
$ | 7.7 | $ | 12.8 | $ | 43.4 | $ | 47.3 | ||||||||
Timber |
||||||||||||||||
GAAP – operating profit |
$ | 4.3 | $ | 2.2 | $ | 9.8 | $ | 18.7 | ||||||||
Restructuring charges |
— | — | 0.1 | 0.1 | ||||||||||||
Timberland disposals, net |
— | (0.2 | ) | — | (0.3 | ) | ||||||||||
Non-GAAP – operating profit before restructuring
charges and timberland disposals, net |
$ | 4.3 | $ | 2.0 | $ | 9.9 | $ | 18.5 | ||||||||
GREIF, INC. AND SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED BALANCE SHEETS
UNAUDITED
(Dollars in millions)
CONDENSED CONSOLIDATED BALANCE SHEETS
UNAUDITED
(Dollars in millions)
| July 31, 2009 | October 31, 2008 | |||||||
ASSETS |
||||||||
CURRENT ASSETS |
||||||||
Cash and cash equivalents |
$ | 85.7 | $ | 77.6 | ||||
Trade accounts receivable |
326.2 | 392.5 | ||||||
Inventories |
220.7 | 304.0 | ||||||
Other current assets |
156.0 | 148.5 | ||||||
| 788.6 | 922.6 | |||||||
LONG-TERM ASSETS |
||||||||
Goodwill |
545.2 | 513.0 | ||||||
Intangible assets |
104.5 | 104.4 | ||||||
Assets held by special purpose entities |
50.9 | 50.9 | ||||||
Other long-term assets |
105.6 | 88.6 | ||||||
| 806.2 | 756.9 | |||||||
PROPERTIES, PLANTS AND EQUIPMENT |
1,075.4 | 1,066.4 | ||||||
| $ | 2,670.2 | $ | 2,745.9 | |||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||
CURRENT LIABILITIES |
||||||||
Accounts payable |
$ | 243.9 | $ | 384.6 | ||||
Short-term borrowings |
48.0 | 44.3 | ||||||
Other current liabilities |
193.8 | 242.9 | ||||||
| 485.7 | 671.8 | |||||||
LONG-TERM LIABILITIES |
||||||||
Long-term debt |
784.1 | 673.2 | ||||||
Liabilities held by special purpose entities |
43.2 | 43.3 | ||||||
Other long-term liabilities |
328.4 | 298.1 | ||||||
| 1,155.7 | 1,014.6 | |||||||
MINORITY INTEREST |
6.1 | 3.7 | ||||||
SHAREHOLDERS’ EQUITY |
1,022.7 | 1,055.8 | ||||||
| $ | 2,670.2 | $ | 2,745.9 | |||||
EXHIBIT 99.2
NEWS
FOR IMMEDIATE RELEASE
Greif, Inc. Declares Third Quarter 2009 Dividends, Appoints John McNamara to Board
DELAWARE, Ohio (Sept. 1, 2009) – The Board of Directors of Greif, Inc. (NYSE: GEF, GEF.B) today
declared quarterly cash dividends of $0.38 per share of Class A Common Stock and $0.57 per share
of Class B Common Stock.
The dividends are payable on Oct. 1, 2009, to shareholders of record at close of business on
Sept. 18, 2009.
In other business, the Directors appointed John W. McNamara to the Board. He takes the seat
left vacant when Michael H. Dempsey passed away in late April.
McNamara, 44, joins members Vicki L. Avril, Bruce A. Edwards, Mark A. Emkes, John F. Finn,
Michael J. Gasser, Daniel J. Gunsett, Judith D. Hook and Patrick J. Norton. McNamara is the nephew
of Judith Hook.
McNamara is president and owner of Corporate Visions Limited, a company that provides aviation
training programs and managerial programs for the aviation industry as well as aviation program
design for institutes of higher learning. He is also a visiting instructor and lecturer in
aviation at educational institutions in Belgium and Trinidad.
McNamara earned an MBA from Southern California University for Professional Studies, and was
graduated from The Ohio State University with an undergraduate degree in Aviation and Aviation
Management. His primary residence is in Florida, and he maintains a residence in Berlin, Germany.
About Greif
Greif, Inc. is a world leader in industrial packaging products and services. The company
produces steel, plastic, fibre, corrugated and multiwall containers, packaging accessories,
protective packaging and containerboard, and provides blending and packaging services for a wide
range of industries. Greif also manages timber properties in North America. The company is
strategically positioned in more than 45 countries to serve global as well as regional customers.
Additional information is on the company’s Web site at www.greif.com.
###
Contact:
Deb Strohmaier, APR
Vice President, Communications
740-549-6074
debra.strohmaier@greif.com
Vice President, Communications
740-549-6074
debra.strohmaier@greif.com