UNITED
STATES
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
Date
of Report (Date of earliest event reported): June 4, 2009 (June 3,
2009)
GREIF,
INC.
(Exact
name of registrant as specified in its charter)
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Delaware
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001-00566
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31-4388903
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||
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(State
or other jurisdiction
of
incorporation)
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(Commission
File Number)
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(IRS
Employer
Identification
No.)
|
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425
Winter Road, Delaware, Ohio
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43015
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|
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(Address
of principal executive offices)
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(Zip
Code)
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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 (see General Instruction A.2. below):
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¨
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Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
|
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¨
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
|
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¨
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
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¨
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
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Section 2
– Financial Information
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Item 2.02.
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Results
of Operations and Financial
Condition.
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On June
3, 2009, Greif, Inc. (the “Company”) issued a press release (the “Earnings
Release”) announcing the financial results for its second quarter ended April
30, 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, debt extinguishment 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, debt extinguishment 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,
debt extinguishment charges and timberland disposals, net on a consolidated
basis is equal to GAAP net income plus restructuring charges,
restructuring-related inventory charges and debt extinguishment charges less
timberland disposals, net, each item 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, debt
extinguishment 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, restructuring-related inventory charges and debt
extinguishment charges less timberland disposals, net, each item 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, restructuring-related inventory
charges and debt extinguishment 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 9
– Financial Statements and Exhibits
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Item 9.01.
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Financial
Statements and Exhibits.
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(c)
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Exhibits.
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Exhibit No.
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Description
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99.1
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Press
release issued by Greif, Inc. on June 3, 2009, announcing the financial
results for its second quarter ended April
30, 2009.
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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.
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GREIF,
INC.
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Date:
June 4, 2009
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By
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/s/
Donald S. Huml
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Donald
S. Huml,
Executive
Vice President and Chief Financial
Officer
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Exhibit No.
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Description
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99.1
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Press
release issued by Greif, Inc. on June 3, 2009, announcing the financial
results for its second quarter ended April
30, 2009.
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EXHIBIT
99.1
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·
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Net
sales decreased 29 percent (20 percent excluding the impact of foreign
currency translation) to $647.9 million in the second quarter of 2009 from
$918.0 million in the second quarter of
2008.
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·
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Net
income before special items, as defined below, was $30.6 million ($0.53
per diluted Class A share) in the second quarter of 2009 compared to $54.3
million ($0.92 per diluted Class A share) in the second quarter of
2008. GAAP net income was $12.1 million ($0.21 per diluted
Class A share) and $48.7 million ($0.82 per diluted Class A share) in the
second quarter of 2009 and 2008,
respectively.
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DELAWARE,
Ohio (June 3, 2009) – Greif, Inc. (NYSE: GEF, GEF.B), a global leader in
industrial packaging products and services, today announced results for its
second fiscal quarter, which ended April 30, 2009.
Michael
J. Gasser, chairman and chief executive officer, said, “The sharp global
economic downturn that began last fall impacted our results for the second
quarter of 2009. We continue to respond by aggressively implementing
plans through the Greif Business System and specific contingency actions to
offset a significant portion of the impact resulting from these weak market
conditions. We anticipate that at least $100 million in annual
savings will be realized from these actions in fiscal 2009. We are
encouraged that there were increased signs of improvement in our markets as we
exited the quarter.”
Mr.
Gasser continued, “Consistent with our growth strategy, we are also pursuing
opportunities to further strengthen our business through acquisitions, which
included two small tuck-in industrial packaging acquisitions in the second
quarter of 2009. We anticipate there will be additional opportunities
to execute our disciplined growth strategy.”
Special Items and GAAP to
Non-GAAP Reconciliations
Special
items are as follows: (i) for the second quarter of 2009, restructuring charges
of $20.3 million ($13.0 million net of tax), restructuring-related inventory
charges of $7.5 million ($5.0 million net of tax) and debt extinguishment
charges of $0.8 million ($0.5 million net of tax); and (ii) for second quarter
of 2008, restructuring charges of $7.3 million ($5.7 million net of tax) and
gain on timberland disposals, net of $0.1 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 29 percent (20 percent excluding the impact of foreign currency
translation) to $647.9 million in the second quarter of 2009 compared to $918.0
million in the second quarter of 2008. The $270.1 million decline was
due to Industrial Packaging ($220.9 million), Paper Packaging ($45.3 million)
and Timber ($3.9 million). The 20 percent constant-currency decrease was due to
lower sales volumes across all product lines.
Operating
profit before special items was $58.1 million for the second quarter of 2009
compared to $88.7 million for the second quarter of 2008. An increase
in Paper Packaging ($0.9 million) was more than offset by lower results for
Industrial Packaging ($23.5 million) and Timber ($8.0 million) compared to the
same period last year. The Company continues to implement previously
announced incremental Greif Business System (GBS) and accelerated GBS
initiatives and specific contingency actions. GAAP operating profit
was $30.3 million and $81.5 million in the second quarter of 2009 and 2008,
respectively.
Net
income before special items was $30.6 million for the second quarter of 2009
compared to $54.3 million for the second quarter of 2008. Diluted
earnings per share before special items were $0.53 compared to $0.92 per Class A
share and $0.79 compared to $1.40 per Class B share for the second quarter of
2009 and 2008, respectively. The Company had GAAP net income of $12.1 million,
or $0.21 per diluted Class A share and $0.31 per diluted Class B share, in the
second quarter of 2009 compared to GAAP net income of $48.7 million, or $0.82
per diluted Class A share and $1.25 per diluted Class B share, in the second
quarter of 2008.
Business
Group Results
Industrial
Packaging net sales decreased 30 percent (19 percent excluding the impact of
foreign currency translation) to $527.1 million in the second quarter of 2009
from $748.0 million in the second quarter of 2008, primarily due to lower
activity levels compared to the same quarter of the previous
year. Operating profit before special items decreased to $40.7
million in the second quarter of 2009 from $64.2 million in the second quarter
of 2008. The $23.5 million decrease was due to lower net sales,
significantly offset by lower raw material costs and related last-in, first-out
(LIFO) benefits. In addition, this segment continues to benefit from
GBS and specific contingency initiatives. GAAP operating profit was
$13.6 million and $57.9 million in the second quarter of 2009 and 2008,
respectively.
Paper
Packaging net sales were $118.1 million in the second quarter of 2009 compared
to $163.4 million in the second quarter of 2008. This decrease was
primarily due to lower activity levels compared to the same quarter of the
previous year, partially offset by higher containerboard selling prices
implemented in the fourth quarter of 2008. Operating profit before special items
increased to $15.0 million in the second quarter of 2009 from $14.1 million in
the second quarter of 2008. The $0.9 million increase was primarily
due to lower raw material costs, especially old corrugated containers, and
related LIFO benefits. Also, labor, transportation and energy costs
were lower as compared to the same quarter of the previous year. In
addition, this segment continues to benefit from GBS and specific contingency
initiatives. GAAP operating profit was $14.3 million and $13.2
million in the second quarter of 2009 and 2008, respectively.
Timber
net sales were $2.7 million and $6.6 million in the second quarter of 2009 and
2008, respectively. Operating profit before special items was $2.4
million in the second quarter of 2009 compared to $10.4 million in the second
quarter of 2008. Included in these amounts were profits from the sale
of special use properties (e.g., surplus, higher and better use, and development
properties) of $1.3 million in the second quarter of 2009 and $9.5 million in
the second quarter of 2008, which included a single large land
sale. GAAP operating profit was $2.4 million and $10.4 million in the
second quarter of 2009 and 2008, respectively.
Other
Financial Information
The
Company’s effective tax rate was 32.9 percent during the second quarter of 2009
compared to 22.9 percent for the same period last year. The higher
effective tax rate resulted from an increase in the proportion of earnings in
the United States relative to outside the United States.
Capital
expenditures were $26.7 million, excluding timberland purchases of $0.2 million,
for the second quarter of 2009 compared with capital expenditures of $40.0
million, excluding timberland purchases of $0.8 million, for the second quarter
of 2008. Fiscal 2009 capital expenditures, excluding timberland purchases, are
expected to be approximately $85 million, which is approximately $25 million
below anticipated depreciation, depletion and amortization expense for the
year.
On June
2, 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 July 1, 2009 to stockholders of record at close of
business on June 19, 2009.
Senior
Secured Credit Facilities
In the
second quarter of 2009, the Company closed on its $700 million senior secured
credit facilities co-arranged by Banc of America Securities LLC and J.P. Morgan
Securities Inc. The new facilities replaced an existing $450 million revolving
credit facility that was scheduled to mature in March 2010. The new
credit agreement provides for a $500 million revolving credit facility and a
$200 million term loan, which both mature in February 2012.
Greif
Business System (GBS) and Accelerated Initiatives
In
December 2008, the Company announced specific plans to address the adverse
impact resulting from the sharp decline in its businesses due to the global
economy, which began in the Company’s fourth quarter of
2008. Management is aggressively implementing those plans that
include the following initiatives:
|
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·
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During
fiscal 2009, incremental GBS savings are expected to be approximately $50
million primarily through the Company’s Operational Excellence and Global
Sourcing initiatives.
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·
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Accelerated
GBS and contingency initiatives are also being implemented that include
continuation of 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 $50 million of savings during fiscal
2009.
|
The
incremental GBS, accelerated GBS and contingency initiatives are ahead of
schedule and are expected to capture at least $100 million in annual savings in
fiscal 2009.
As a
result of the incremental GBS, accelerated GBS and contingency initiatives, the
Company is expecting to record restructuring charges of approximately $70
million during fiscal 2009. During the second quarter of 2009, the
Company recorded $20.3 million of restructuring charges, including $11.2 million
of employee separation costs, $6.7 million of asset impairments and $2.4 million
of other costs, and $7.5 million of restructuring-related inventory
charges.
The
restructuring and other cost reduction activities resulted in the closure of 3
facilities in the second quarter of 2009 and 13 facilities for the year-to-date
period, including the elimination of certain operating and administrative
positions throughout the Company’s global operations. There were 678
positions eliminated in the second quarter of 2009, increasing the total number
to 2,053 in fiscal 2009.
Company
Outlook
The
Company is encouraged by additional signs of improvement, which are consistent
with expectations for its full fiscal year. As such, the Company
reaffirms its earnings guidance before special items of $3.25 to $3.75 per Class
A share for fiscal 2009.
Conference
Call
The
Company will host a conference call to discuss the second quarter of 2009
results on June 4, 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 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.
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GREIF,
INC. AND SUBSIDIARY COMPANIES
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CONSOLIDATED
STATEMENTS OF INCOME
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||||||||||||||||
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UNAUDITED
|
||||||||||||||||
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(Dollars
and shares in millions, except per share amounts)
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||||||||||||||||
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Three
months ended
April
30,
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Six
months ended
April
30,
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|||||||||||||||
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2009
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2008
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2009
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2008
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|||||||||||||
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Net
sales
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$ | 647.9 | $ | 918.0 | $ | 1,314.1 | $ | 1,764.3 | ||||||||
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Cost
of products sold
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533.8 | 758.8 | 1,099.5 | 1,456.8 | ||||||||||||
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Gross
profit
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114.1 | 159.2 | 214.6 | 307.5 | ||||||||||||
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Selling,
general and administrative expenses
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65.7 | 83.4 | 124.1 | 163.9 | ||||||||||||
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Restructuring
charges
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20.3 | 7.3 | 47.5 | 17.8 | ||||||||||||
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Asset
disposals, net
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2.2 | 13.0 | 4.6 | 49.9 | ||||||||||||
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Operating
profit
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30.3 | 81.5 | 47.6 | 175.7 | ||||||||||||
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Interest
expense, net
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13.4 | 13.3 | 25.6 | 25.1 | ||||||||||||
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Debt
extinguishment charges
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0.8 | -- | 0.8 | -- | ||||||||||||
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Other
income (expense), net
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2.0 | (3.8 | ) | 0.2 | (7.1 | ) | ||||||||||
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Income
before income tax expense and equity
earnings
and minority interests
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18.1 | 64.4 | 21.4 | 143.5 | ||||||||||||
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Income
tax expense
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6.0 | 14.7 | 6.9 | 33.5 | ||||||||||||
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Equity
earnings and minority interests
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-- | (1.0 | ) | (1.1 | ) | (0.7 | ) | |||||||||
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Net
income
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$ | 12.1 | $ | 48.7 | $ | 13.4 | $ | 109.3 | ||||||||
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Basic
earnings per share:
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||||||||||||||||
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Class
A Common Stock
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$ | 0.21 | $ | 0.84 | $ | 0.24 | $ | 1.88 | ||||||||
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Class
B Common Stock
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$ | 0.31 | $ | 1.25 | $ | 0.34 | $ | 2.81 | ||||||||
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Diluted
earnings per share:
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||||||||||||||||
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Class
A Common Stock
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$ | 0.21 | $ | 0.82 | $ | 0.24 | $ | 1.85 | ||||||||
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Class
B Common Stock
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$ | 0.31 | $ | 1.25 | $ | 0.34 | $ | 2.81 | ||||||||
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Earnings
per share were calculated using the
following
number of shares:
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||||||||||||||||
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Basic
earnings per share:
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||||||||||||||||
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Class
A Common Stock
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24.4 | 23.9 | 24.2 | 23.9 | ||||||||||||
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Class
B Common Stock
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22.5 | 22.9 | 22.5 | 22.9 | ||||||||||||
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Diluted
earnings per share:
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||||||||||||||||
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Class
A Common Stock
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24.6 | 24.4 | 24.5 | 24.4 | ||||||||||||
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Class
B Common Stock
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22.5 | 22.9 | 22.5 | 22.9 | ||||||||||||
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GREIF,
INC. AND SUBSIDIARY COMPANIES
|
||||||||||||||||||||||||
|
GAAP
TO NON-GAAP RECONCILIATION
|
||||||||||||||||||||||||
|
CONSOLIDATED
STATEMENTS OF INCOME
|
||||||||||||||||||||||||
|
UNAUDITED
|
||||||||||||||||||||||||
|
(Dollars
in millions, except per share amounts)
|
||||||||||||||||||||||||
|
Three
months ended April 30, 2009
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Three
months ended April 30, 2008
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|||||||||||||||||||||||
|
Diluted per share amounts
|
Diluted per share
amounts
|
|||||||||||||||||||||||
|
Class A
|
Class B
|
Class A
|
Class B
|
|||||||||||||||||||||
|
GAAP
– operating profit
|
$ | 30.3 | $ | 81.5 | ||||||||||||||||||||
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Restructuring
charges
|
20.3 | 7.3 | ||||||||||||||||||||||
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Restructuring-related
inventory charges
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7.5 | -- | ||||||||||||||||||||||
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Timberland
disposals, net
|
-- | (0.1 | ) | |||||||||||||||||||||
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Non-GAAP
– operating
profit
before restructuring charges, restructuring-related inventory charges and
timberland disposals, net
|
$ | 58.1 | $ | 88.7 | ||||||||||||||||||||
|
GAAP
– net income
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$ | 12.1 | $ | 0.21 | $ | 0.31 | $ | 48.7 | $ | 0.82 | $ | 1.25 | ||||||||||||
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Restructuring
charges, net of tax
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13.0 | 0.24 | 0.34 | 5.7 | 0.10 | 0.15 | ||||||||||||||||||
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Restructuring-related
inventory charges, net of tax
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5.0 | 0.08 | 0.13 | -- | -- | -- | ||||||||||||||||||
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Debt
extinguishment charges, net of tax
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0.5 | -- | 0.01 | -- | -- | -- | ||||||||||||||||||
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Timberland
disposals, net of tax
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-- | -- | -- | (0.1 | ) | -- | -- | |||||||||||||||||
|
Non-GAAP
– net income before restructuring charges, restructuring-related inventory
charges, debt extinguishment charges and timberland disposals,
net
|
$ | 30.6 | $ | 0.53 | $ | 0.79 | $ | 54.3 | $ | 0.92 | $ | 1.40 | ||||||||||||
|
Six
months ended April 30, 2009
|
Six
months ended April 30, 2008
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|||||||||||||||||||||||
|
Diluted per share amounts
|
Diluted per share
amounts
|
|||||||||||||||||||||||
|
Class A
|
Class B
|
Class A
|
Class B
|
|||||||||||||||||||||
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GAAP
– operating profit
|
$ | 47.6 | $ | 175.7 | ||||||||||||||||||||
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Restructuring
charges
|
47.5 | 17.8 | ||||||||||||||||||||||
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Restructuring-related
inventory
charges
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9.3 | -- | ||||||||||||||||||||||
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Timberland
disposals, net
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-- | (0.2 | ) | |||||||||||||||||||||
|
Non-GAAP
– operating
profit
before restructuring charges, restructuring-related inventory charges and
timberland disposals, net
|
$ | 104.4 | $ | 193.3 | ||||||||||||||||||||
|
GAAP
– net income
|
$ | 13.4 | $ | 0.24 | $ | 0.34 | $ | 109.3 | $ | 1.85 | $ | 2.81 | ||||||||||||
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Restructuring
charges, net of tax
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32.1 | 0.56 | 0.84 | 13.7 | 0.23 | 0.35 | ||||||||||||||||||
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Restructuring-related
inventory charges, net of tax
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6.3 | 0.11 | 0.16 | -- | -- | -- | ||||||||||||||||||
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Debt
extinguishment charges, net of tax
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0.5 | -- | 0.01 | -- | -- | -- | ||||||||||||||||||
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Timberland
disposals, net of tax
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-- | -- | -- | (0.1 | ) | -- | -- | |||||||||||||||||
|
Non-GAAP
– net income before restructuring charges, restructuring-related inventory
charges, debt extinguishment charges and timberland disposals,
net
|
$ | 52.3 | $ | 0.91 | $ | 1.35 | $ | 122.9 | $ | 2.08 | $ | 3.16 | ||||||||||||
|
GREIF,
INC. AND SUBSIDIARY COMPANIES
|
||||||||||||||||
|
SEGMENT
DATA
|
||||||||||||||||
|
UNAUDITED
|
||||||||||||||||
|
(Dollars
in millions)
|
||||||||||||||||
|
Three
months ended
April
30,
|
Six
months ended
April
30,
|
|||||||||||||||
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||
|
Net
sales
|
||||||||||||||||
|
Industrial
Packaging
|
$ | 527.1 | $ | 748.0 | $ | 1,056.6 | $ | 1,419.3 | ||||||||
|
Paper
Packaging
|
118.1 | 163.4 | 248.4 | 332.2 | ||||||||||||
|
Timber
|
2.7 | 6.6 | 9.1 | 12.8 | ||||||||||||
|
Total
|
$ | 647.9 | $ | 918.0 | $ | 1,314.1 | $ | 1,764.3 | ||||||||
|
Operating
profit
|
||||||||||||||||
|
Operating
profit before restructuring charges,
restructuring-related
inventory charges and
timberland
disposals, net:
|
||||||||||||||||
|
Industrial
Packaging
|
$ | 40.7 | $ | 64.2 | $ | 63.1 | $ | 142.2 | ||||||||
|
Paper
Packaging
|
15.0 | 14.1 | 35.7 | 34.5 | ||||||||||||
|
Timber
|
2.4 | 10.4 | 5.6 | 16.6 | ||||||||||||
|
Operating
profit before restructuring charges,
restructuring-related
inventory charges and
timberland
disposals, net
|
58.1 | 88.7 | 104.4 | 193.3 | ||||||||||||
|
Restructuring
charges:
|
||||||||||||||||
|
Industrial
Packaging
|
19.6 | 6.3 | 44.7 | 15.8 | ||||||||||||
|
Paper
Packaging
|
0.7 | 0.9 | 2.6 | 1.9 | ||||||||||||
|
Timber
|
-- | 0.1 | 0.2 | 0.1 | ||||||||||||
|
Restructuring
charges
|
20.3 | 7.3 | 47.5 | 17.8 | ||||||||||||
|
Restructuring-related
inventory charges:
|
||||||||||||||||
|
Industrial
Packaging
|
7.5 | -- | 9.3 | -- | ||||||||||||
|
Timberland
disposals, net:
|
||||||||||||||||
|
Timber
|
-- | 0.1 | -- | 0.2 | ||||||||||||
|
Total
|
$ | 30.3 | $ | 81.5 | $ | 47.6 | $ | 175.7 | ||||||||
|
Depreciation,
depletion and amortization expense
|
||||||||||||||||
|
Industrial
Packaging
|
$ | 17.6 | $ | 18.3 | $ | 35.0 | $ | 36.0 | ||||||||
|
Paper
Packaging
|
6.6 | 7.3 | 13.4 | 13.1 | ||||||||||||
|
Timber
|
0.1 | 1.2 | 1.1 | 3.5 | ||||||||||||
|
Total
|
$ | 24.3 | $ | 26.8 | $ | 49.5 | $ | 52.6 | ||||||||
|
GREIF,
INC. AND SUBSIDIARY COMPANIES
|
||||||||||||||||
|
GEOGRAPHIC
DATA
|
||||||||||||||||
|
UNAUDITED
|
||||||||||||||||
|
(Dollars
in millions)
|
||||||||||||||||
|
Three
months ended
April
30,
|
Six
months ended
April
30,
|
|||||||||||||||
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||
|
Net
sales
|
||||||||||||||||
|
North
America
|
$ | 361.4 | $ | 475.8 | $ | 755.3 | $ | 925.8 | ||||||||
|
Europe,
Middle East and Africa
|
192.4 | 324.9 | 374.7 | 607.1 | ||||||||||||
|
Other
|
94.1 | 117.3 | 184.1 | 231.4 | ||||||||||||
|
Total
|
$ | 647.9 | $ | 918.0 | $ | 1,314.1 | $ | 1,764.3 | ||||||||
|
Operating
profit
|
||||||||||||||||
|
Operating
profit before restructuring charges,
restructuring-related
inventory charges and
timberland
disposals, net:
|
||||||||||||||||
|
North
America
|
$ | 43.9 | $ | 44.8 | $ | 97.7 | $ | 80.8 | ||||||||
|
Europe,
Middle East and Africa
|
12.9 | 35.1 | 13.3 | 56.3 | ||||||||||||
|
Other
|
1.3 | 8.8 | (6.6 | ) | 56.2 | |||||||||||
|
Operating
profit before restructuring charges and
timberland
disposals, net
|
58.1 | 88.7 | 104.4 | 193.3 | ||||||||||||
|
Restructuring
charges
|
20.3 | 7.3 | 47.5 | 17.8 | ||||||||||||
|
Restructuring-related
inventory charges
|
7.5 | -- | 9.3 | -- | ||||||||||||
|
Timberland
disposals, net
|
-- | 0.1 | -- | 0.2 | ||||||||||||
|
Total
|
$ | 30.3 | $ | 81.5 | $ | 47.6 | $ | 175.7 | ||||||||
|
GREIF,
INC. AND SUBSIDIARY COMPANIES
|
||||||||||||||||
|
GAAP
TO NON-GAAP RECONCILIATION
|
||||||||||||||||
|
SEGMENT
DATA
|
||||||||||||||||
|
UNAUDITED
|
||||||||||||||||
|
(Dollars
in millions)
|
||||||||||||||||
|
Three
months ended
April
30,
|
Six
months ended
April
30,
|
|||||||||||||||
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||
|
Industrial
Packaging
|
||||||||||||||||
|
GAAP
– operating profit
|
$ | 13.6 | $ | 57.9 | $ | 9.1 | $ | 126.4 | ||||||||
|
Restructuring
charges
|
19.6 | 6.3 | 44.7 | 15.8 | ||||||||||||
|
Restructuring-related
inventory charges
|
7.5 | -- | 9.3 | -- | ||||||||||||
|
Non-GAAP
– operating profit before restructuring
charges
and restructuring-related inventory charges
|
$ | 40.7 | $ | 64.2 | $ | 63.1 | $ | 142.2 | ||||||||
|
Paper
Packaging
|
||||||||||||||||
|
GAAP
– operating profit
|
$ | 14.3 | $ | 13.2 | $ | 33.1 | $ | 32.6 | ||||||||
|
Restructuring
charges
|
0.7 | 0.9 | 2.6 | 1.9 | ||||||||||||
|
Non-GAAP
– operating profit before restructuring
charges
|
$ | 15.0 | $ | 14.1 | $ | 35.7 | $ | 34.5 | ||||||||
|
Timber
|
||||||||||||||||
|
GAAP
– operating profit
|
$ | 2.4 | $ | 10.4 | $ | 5.4 | $ | 16.7 | ||||||||
|
Restructuring
charges
|
-- | 0.1 | 0.2 | 0.1 | ||||||||||||
|
Timberland
disposals, net
|
-- | (0.1 | ) | -- | (0.2 | ) | ||||||||||
|
Non-GAAP
– operating profit before restructuring
charges
and timberland disposals, net
|
$ | 2.4 | $ | 10.4 | $ | 5.6 | $ | 16.6 | ||||||||
|
GREIF,
INC. AND SUBSIDIARY COMPANIES
|
||||||||
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
||||||||
|
UNAUDITED
|
||||||||
|
(Dollars
in millions)
|
||||||||
|
April 30, 2009
|
October 31, 2008
|
|||||||
|
ASSETS
|
||||||||
|
CURRENT
ASSETS
|
||||||||
|
Cash
and cash equivalents
|
$ | 66.8 | $ | 77.6 | ||||
|
Trade
accounts receivable
|
309.3 | 392.5 | ||||||
|
Inventories
|
244.1 | 304.0 | ||||||
|
Other
current assets
|
135.5 | 148.5 | ||||||
| 755.7 | 922.6 | |||||||
|
LONG-TERM
ASSETS
|
||||||||
|
Goodwill
|
531.6 | 513.0 | ||||||
|
Intangible
assets
|
102.6 | 104.4 | ||||||
|
Assets
held by special purpose entities
|
50.9 | 50.9 | ||||||
|
Other
long-term assets
|
98.0 | 88.6 | ||||||
| 783.1 | 756.9 | |||||||
|
PROPERTIES,
PLANTS AND EQUIPMENT
|
1,049.7 | 1,066.4 | ||||||
| $ | 2,588.5 | $ | 2,745.9 | |||||
|
LIABILITIES
AND SHAREHOLDERS’ EQUITY
|
||||||||
|
CURRENT
LIABILITIES
|
||||||||
|
Accounts
payable
|
$ | 178.8 | $ | 384.6 | ||||
|
Short-term
borrowings
|
57.9 | 44.3 | ||||||
|
Other
current liabilities
|
152.2 | 242.9 | ||||||
| 388.9 | 671.8 | |||||||
|
LONG-TERM
LIABILITIES
|
||||||||
|
Long-term
debt
|
828.2 | 673.2 | ||||||
|
Liabilities
held by special purpose entities
|
43.2 | 43.3 | ||||||
|
Other
long-term liabilities
|
322.2 | 298.1 | ||||||
| 1,193.6 | 1,014.6 | |||||||
|
MINORITY
INTEREST
|
4.8 | 3.7 | ||||||
|
SHAREHOLDERS’
EQUITY
|
1,001.2 | 1,055.8 | ||||||
| $ | 2,588.5 | $ | 2,745.9 | |||||