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, 2004 (June 3, 2004)
GREIF, INC.
(Exact name of registrant as specified in its charter)
Delaware | 1-566 | 31-4388903 | ||
(State or other jurisdiction of incorporation or organization) |
(Commission File Number) | (I.R.S. Employer Identification No.) |
425 Winter Road, Delaware, Ohio | 43015 | |
(Address of principal executive offices) | (Zip Code) |
Registrants telephone number, including area code (740) 549-6000
Not Applicable
Former name or former address, if changed since last report.
Item 12. Results of Operations and Financial Condition.
On June 3, 2004, Greif, Inc. (the Company) issued a press release (the Release) announcing its results for the second quarter ended April 30, 2004. The full text of the Release is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
The Release included the following non-GAAP financial measures: (i) net income before restructuring charges and timberland gains, (ii) diluted earnings per Class A and Class B share before restructuring charges and timberland gains, (iii) operating profit before restructuring charges and timberland gains, and (iv) operating profit before restructuring charges. Net income before restructuring charges and timberland gains is equal to GAAP net income plus restructuring charges less timberland gains, net of tax. Diluted earnings per Class A and Class B share before restructuring charges and timberland gains is equal to GAAP diluted earnings per Class A and Class B share plus the effects of restructuring charges less the effects of timberland gains, net of tax. Operating profit before restructuring charges and timberland gains is equal to GAAP operating profit plus restructuring charges less timberland gains. Operating profit before restructuring charges is equal to GAAP operating profit plus restructuring charges.
Management uses net income before restructuring charges and timberland gains, diluted earnings per Class A and Class B share before restructuring charges and timberland gains, operating profit before restructuring charges and timberland gains and operating profit before restructuring charges because it believes that these measures are a better indication of the Companys operational performance than GAAP net income, diluted earnings per Class A and Class B share and operating profit since they exclude restructuring charges, which are not representative of ongoing operations, and timberland gains, which are volatile from period to period. Net income before restructuring charges and timberland gains, diluted earnings per Class A and Class B share before restructuring charges and timberland gains, operating profit before restructuring charges and timberland gains and operating profit before restructuring charges provide a more stable platform on which to compare the historical performance of the Company.
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: June 4, 2004 |
By: |
/s/ Donald S. Huml | ||
Donald S. Huml | ||||
Chief Financial Officer | ||||
(Duly Authorized Signatory) |
INDEX TO EXHIBITS
Exhibit No. |
Description | |
99.1 | Press release issued by Greif, Inc. on June 3, 2004 announcing its results for the second quarter ended April 30, 2004. |
Exhibit 99.1
GREIF, INC. REPORTS IMPROVED SECOND QUARTER RESULTS
DELAWARE, Ohio (June 3, 2004) Greif, Inc. (NYSE: GEF, GEF.B), a global leader in industrial packaging with niche businesses in paper, corrugated packaging and timber, today announced results for its second quarter ended April 30, 2004.
Net income before restructuring charges and timberland gains was $16.0 million for the second quarter of 2004 compared with $6.4 million for the second quarter of last year. Diluted earnings per share before restructuring charges and timberland gains were $0.56 versus $0.23 per Class A share and $0.85 versus $0.34 per Class B share for the second quarter of 2004 and 2003, respectively.
The Company reported GAAP net income of $8.4 million, or $0.30 per Class A share and $0.45 per Class B share, for the second quarter of 2004 versus net loss of $4.4 million, or $0.16 per Class A share and $0.24 per Class B share, for the same quarter last year.
Michael J. Gasser, chairman and chief executive officer, commented, We are pleased with our second quarter results, which are primarily being driven by the traction gained from our ongoing transformation initiatives. The expected SG&A savings and organic growth are being delivered. In addition, the results from adopting lean practices at our plants are encouraging. We are looking forward to continued improvements as we implement lean principles across our global footprint.
A reconciliation of the differences between all non-GAAP financial measures disclosed in this release with the most directly comparable GAAP financial measures is included in the financial schedules that are a part of this release.
Consolidated Results
Net sales rose 15 percent to $542.2 million for the second quarter of 2004 from $470.8 million during the same quarter last year. On a consolidated basis, net sales increased approximately 9 percent excluding the impact of foreign currency translation. Higher selling prices and volumes in the Industrial Packaging & Services and higher volumes in the Paper, Packaging & Services segments contributed to this increase.
Gross profit was $89.3 million, or 16.5 percent of net sales, for the second quarter of 2004 versus $82.2 million, or 17.5 percent of net sales, for the second quarter of 2003. The principal factors impacting the reduction in the gross profit margin comparison were higher raw material costs, particularly steel and old corrugated containers, lower planned timber sales and higher energy costs. Improved efficiencies in labor and other manufacturing costs partially offset these factors. The gross profit margin improved 1.7 percentage points for the second quarter of 2004 over the first quarter of 2004.
Selling, general and administrative (SG&A) expenses declined to $55.7 million, or 10.3 percent of net sales, for the second quarter of 2004 from $59.0 million, or 12.5 percent of net sales, for the same period a year ago. The decline in SG&A expenses was primarily attributable to realization of additional savings from the Companys transformation initiatives. The dollar reduction in SG&A expenses was partially offset by the impact of foreign currency translation (approximately $3 million).
Operating profit before restructuring charges and timberland gains increased 41 percent to $33.3 million for the second quarter of 2004 compared with $23.6 million for the same period last year. There were $12.3 million and $17.4 million of restructuring charges and $1.4 million and $1.6 million of timberland gains during the second quarter of 2004 and 2003, respectively. GAAP operating profit was $22.4 million for the second quarter of 2004 compared with GAAP operating profit of $7.7 million for the same period last year.
During the second quarter of 2003, the Company included a 37 percent deduction of CorrChoices net income related to its minority shareholders. Effective September 30, 2003, the Companys ownership increased to 100 percent due to CorrChoices redemption of its minority shareholders outstanding shares. Therefore, no such deduction was made in fiscal 2004.
Business Group Results
Industrial Packaging & Services
Net sales rose 16 percent to $399.7 million for the second quarter of 2004 from $343.4 million for the same period last year. Net sales increased 8 percent after excluding the impact of foreign currency translation. Selling prices rose in response to higher raw material costs, especially steel, and contributed to the increase in net sales for the second quarter of 2004. Additionally, sales volumes were higher for steel and plastic drums.
Operating profit before restructuring charges rose to $27.8 million for the second quarter of 2004 from $13.9 million for the same period a year ago. Restructuring charges were $9.5 million for the second quarter of 2004 compared with $13.6 million a year ago. The Industrial Packaging & Services segments gross profit margin benefited from labor and other manufacturing efficiencies, partially offset by higher raw material costs as a percentage of net sales. SG&A expenses for Industrial Packaging & Services reflect a portion of the savings resulting from the Companys transformation initiatives. GAAP operating profit was $18.2 million for the second quarter of 2004 compared with $0.4 million for the second quarter of 2003.
Paper, Packaging & Services
Net sales rose 14 percent to $138.0 million for the second quarter of 2004 from $120.8 million for the same period last year. Improved volumes for most of this segments products were partially offset by lower average selling prices in the containerboard operations. Compared to the first quarter of 2004, net sales in the second quarter of 2004 increased by 10 percent primarily as a result of improved selling prices.
Operating profit before restructuring charges was $2.4 million for the second quarter of 2004 compared with $4.8 million the prior year. Restructuring charges were $2.7 million for the second quarter of 2004 versus $3.8 million a year ago. The decrease in operating profit before restructuring charges was primarily due to a decline in gross profit margin resulting from reduced pricing levels and higher raw material costs, particularly for old corrugated containers, and energy costs in the containerboard operations. Lower SG&A expenses in the second quarter of 2004 compared with the same quarter last year partially offset this reduction. GAAP operating loss was $0.2 million for the second quarter of 2004 compared with GAAP operating profit of $1.0 million for the second quarter of 2003.
Timber
Timber net sales were $4.5 million for the second quarter of 2004 compared with $6.6 million for the same period last year. These net sales were consistent with planned levels for both periods.
As a result of the lower sales volume, operating profit before restructuring charges and timberland gains were $3.1 million for the second quarter of 2004 compared to $4.8 million a year ago. Restructuring charges were $0.1 million for the second quarter of 2004 and 2003. Timberland gains were $1.4 million for the second quarter of 2004 and $1.6 million for the same period last year. GAAP operating profit was $4.4 million for the second quarter of 2004 compared with $6.3 million for the second quarter of 2003.
Transformation Initiatives
As previously announced, the transformation initiatives, initially referred to as the performance improvement plan, are expected to enhance long-term organic sales growth and productivity and achieve permanent cost reductions. The Companys focus during fiscal 2003 was primarily on SG&A optimization, which is expected to result in annual cost savings of $60 million realized in fiscal 2004. The focus during fiscal 2004 is to become an even leaner, more market-focused/performance-driven company. This final phase of the transformation is expected to deliver additional annualized benefits of approximately $50 million, with about $15 million of those savings to be realized in fiscal 2004 and the remainder in fiscal 2005. The opportunities identified include, but are not limited to, improved labor productivity, material yield and other manufacturing efficiencies, coupled with further network consolidation. The related one-time costs for this phase will be approximately $45 million to $50 million, which will be incurred in fiscal 2004. In addition, the Company has launched a strategic sourcing initiative to more effectively leverage its global spending and lay the foundation for a world-class sourcing and supply chain capability.
Financing Arrangements
Total debt outstanding was $644 million at April 30, 2004 and $662 million at October 31, 2003. Total debt to total capitalization declined to 52.5 percent at April 30, 2004 from 53.6 percent at October 31, 2003.
Interest expense declined to $10.7 million for the second quarter of 2004 from $13.9 million for the same period last year. This reduction was primarily due to lower average interest rates on the Companys debt. A $25 million reduction in average debt outstanding during the second quarter of 2004 compared to the second quarter of 2003 also contributed to this decrease.
Capital Expenditures
Capital expenditures were $16.4 million, excluding timberland purchases of $1.9 million, for the second quarter of 2004 compared with capital expenditures of $10.5 million during the same period last year. For fiscal 2004, capital expenditures are expected to be approximately $75 million to $80 million, which would be approximately $20 million to $25 million below the Companys anticipated depreciation expense.
Company Outlook
The operating environment for fiscal 2004 is expected to modestly improve compared to fiscal 2003. Gradual improvement in activity levels may be offset by higher raw material costs, especially steel and old corrugated containers, and energy costs. Savings from the Companys transformation initiatives and positive contributions from the Companys full ownership of CorrChoice are being realized as planned. Both of these factors are anticipated to represent a substantial portion of the improved fiscal 2004 results. Due to these factors, managements guidance for fiscal 2004, before restructuring charges and timberland gains, remains at $2.35 - $2.40 per Class A share.
Conference Call
The Company will host a conference call to discuss its second quarter of 2004 results on Friday, June 4, 2004 at 10:00 a.m. ET at (800) 218-0530. For international callers, the number is (303) 262-2142.
The conference call will also be available through a live webcast, which can be accessed at www.greif.com. A replay of the conference call will be available on the Companys Web site approximately one hour following the call.
About Greif
Greif is a world leader in industrial packaging products and services. The Company provides extensive expertise in steel, plastic, fibre, corrugated and multiwall containers for a wide range of industries. Greif also produces containerboard and manages timber properties in North America. Greif is strategically positioned in more than 40 countries to serve multinational as well as regional customers. Additional information is on the Companys Web site 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 Companys 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 or continue or the negative thereof or variations thereon or
similar terminology. All forward-looking statements made in this news release are based on information presently 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 or business conditions, including a prolonged or substantial economic downturn; changing trends and demands in the industries in which the Company competes, including industry over-capacity; industry competition; the continuing consolidation of the Companys 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 Companys products, particularly steel and resin, and 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 Companys ability to integrate its newly acquired operations effectively with its existing business; the Companys ability to achieve improved operating efficiencies and capabilities; the frequency and volume of sales of the Companys timber and 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 Companys consolidated financial results are further discussed in its filings with the Securities and Exchange Commission, including its Form 10-K for the year ended October 31, 2003. The Company assumes no obligation to update any forward-looking statements.
GREIF, INC. AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED
(Dollars in thousands, except per share amounts)
Three months ended April 30, |
Six months ended April 30, |
|||||||||||||||
2004 |
2003 |
2004 |
2003 |
|||||||||||||
Net sales |
$ | 542,189 | $ | 470,807 | $ | 1,011,049 | $ | 905,485 | ||||||||
Cost of products sold |
452,928 | 388,564 | 852,338 | 747,513 | ||||||||||||
Gross profit |
89,261 | 82,243 | 158,711 | 157,972 | ||||||||||||
Selling, general and administrative expenses |
55,745 | 59,000 | 106,770 | 118,501 | ||||||||||||
Restructuring charges |
12,278 | 17,449 | 27,537 | 18,988 | ||||||||||||
Gain on sale of assets |
1,122 | 1,934 | 5,231 | 2,345 | ||||||||||||
Operating profit |
22,360 | 7,728 | 29,635 | 22,828 | ||||||||||||
Interest expense, net |
10,716 | 13,923 | 22,963 | 27,477 | ||||||||||||
Other income, net |
694 | 2,138 | 916 | 2,362 | ||||||||||||
Income (loss) before income tax expense (benefit) and equity in earnings of affiliates and minority interests |
12,338 | (4,057 | ) | 7,588 | (2,287 | ) | ||||||||||
Income tax expense (benefit) |
3,800 | (1,298 | ) | 2,337 | (732 | ) | ||||||||||
Equity in earnings of affiliates and minority interests |
(89 | ) | (1,654 | ) | (168 | ) | (2,749 | ) | ||||||||
Income (loss) before cumulative effect of change in accounting principle |
8,449 | (4,413 | ) | 5,083 | (4,304 | ) | ||||||||||
Cumulative effect of change in accounting principle |
| | | 4,822 | ||||||||||||
Net income (loss) |
$ | 8,449 | $ | (4,413 | ) | $ | 5,083 | $ | 518 | |||||||
Basic and diluted earnings (loss) per share: | ||||||||||||||||
Class A Common Stock (before cumulative effect) |
$ | 0.30 | $ | (0.16 | ) | $ | 0.18 | $ | (0.15 | ) | ||||||
Class A Common Stock (after cumulative effect) |
$ | 0.30 | $ | (0.16 | ) | $ | 0.18 | $ | 0.02 | |||||||
Class B Common Stock (before cumulative effect) |
$ | 0.45 | $ | (0.24 | ) | $ | 0.27 | $ | (0.23 | ) | ||||||
Class B Common Stock (after cumulative effect) |
$ | 0.45 | $ | (0.24 | ) | $ | 0.27 | $ | 0.02 |
GREIF, INC. AND SUBSIDIARY COMPANIES
SEGMENT DATA
UNAUDITED
(Dollars in thousands)
Three months ended April 30, |
Six months ended April 30, | |||||||||||
2004 |
2003 |
2004 |
2003 | |||||||||
Net sales |
||||||||||||
Industrial Packaging & Services |
$ | 399,689 | $ | 343,387 | $ | 737,080 | $ | 646,535 | ||||
Paper, Packaging & Services |
138,043 | 120,775 | 263,337 | 245,455 | ||||||||
Timber |
4,457 | 6,645 | 10,632 | 13,495 | ||||||||
Total |
$ | 542,189 | $ | 470,807 | $ | 1,011,049 | $ | 905,485 | ||||
Operating profit |
||||||||||||
Operating profit before restructuring charges and timberland gains: |
||||||||||||
Industrial Packaging & Services |
$ | 27,760 | $ | 13,942 | $ | 36,611 | $ | 17,457 | ||||
Paper, Packaging & Services |
2,435 | 4,821 | 7,788 | 12,712 | ||||||||
Timber |
3,079 | 4,846 | 7,475 | 9,683 | ||||||||
Total operating profit before restructuring charges and timberland gains |
33,274 | 23,609 | 51,874 | 39,852 | ||||||||
Restructuring charges: |
||||||||||||
Industrial Packaging & Services |
9,541 | 13,562 | 21,563 | 14,727 | ||||||||
Paper, Packaging & Services |
2,665 | 3,791 | 5,834 | 4,165 | ||||||||
Timber |
72 | 96 | 140 | 96 | ||||||||
Restructuring charges |
12,278 | 17,449 | 27,537 | 18,988 | ||||||||
Timberland gains: |
||||||||||||
Timber |
1,364 | 1,568 | 5,298 | 1,964 | ||||||||
Total |
$ | 22,360 | $ | 7,728 | $ | 29,635 | $ | 22,828 | ||||
Depreciation, depletion and amortization expense |
||||||||||||
Industrial Packaging & Services |
$ | 17,019 | $ | 16,088 | $ | 34,078 | $ | 30,942 | ||||
Paper, Packaging & Services |
8,486 | 8,707 | 17,311 | 17,554 | ||||||||
Timber |
592 | 354 | 1,418 | 754 | ||||||||
Total |
$ | 26,097 | $ | 25,149 | $ | 52,807 | $ | 49,250 | ||||
GREIF, INC. AND SUBSIDIARY COMPANIES
GEOGRAPHIC DATA
UNAUDITED
(Dollars in thousands)
Three months ended April 30, |
Six months ended April 30, | |||||||||||
2004 |
2003 |
2004 |
2003 | |||||||||
Net sales |
||||||||||||
North America |
$ | 305,470 | $ | 283,980 | $ | 573,494 | $ | 559,037 | ||||
Europe |
159,001 | 129,407 | 291,947 | 236,728 | ||||||||
Other |
77,718 | 57,420 | 145,608 | 109,720 | ||||||||
Total |
$ | 542,189 | $ | 470,807 | $ | 1,011,049 | $ | 905,485 | ||||
Operating profit |
||||||||||||
Operating profit before restructuring charges and timberland gains: |
||||||||||||
North America |
$ | 13,672 | $ | 12,171 | $ | 22,156 | $ | 22,494 | ||||
Europe |
12,993 | 8,261 | 17,304 | 11,637 | ||||||||
Other |
6,609 | 3,177 | 12,414 | 5,721 | ||||||||
Operating profit before restructuring charges and timberland gains |
33,274 | 23,609 | 51,874 | 39,852 | ||||||||
Restructuring charges |
12,278 | 17,449 | 27,537 | 18,988 | ||||||||
Timberland gains |
1,364 | 1,568 | 5,298 | 1,964 | ||||||||
Total |
$ | 22,360 | $ | 7,728 | $ | 29,635 | $ | 22,828 | ||||
GREIF, INC. AND SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED BALANCE SHEETS
UNAUDITED
(Dollars in thousands)
April 30, 2004 |
October 31, 2003 | |||||
ASSETS |
||||||
CURRENT ASSETS |
||||||
Cash and cash equivalents |
$ | 29,592 | $ | 49,767 | ||
Trade accounts receivable |
306,462 | 294,957 | ||||
Inventories |
160,407 | 167,157 | ||||
Other current assets |
83,621 | 71,576 | ||||
580,082 | 583,457 | |||||
LONG-TERM ASSETS |
||||||
Goodwill |
242,707 | 252,309 | ||||
Intangible assets |
28,701 | 30,654 | ||||
Other long-term assets |
69,657 | 52,416 | ||||
341,065 | 335,379 | |||||
PROPERTIES, PLANTS AND EQUIPMENT |
881,252 | 912,375 | ||||
$ | 1,802,399 | $ | 1,831,211 | |||
LIABILITIES AND SHAREHOLDERS EQUITY |
||||||
CURRENT LIABILITIES |
||||||
Accounts payable |
$ | 158,906 | $ | 158,333 | ||
Short-term borrowings |
20,200 | 15,605 | ||||
Current portion of long-term debt |
| 3,000 | ||||
Other current liabilities |
120,222 | 135,380 | ||||
299,328 | 312,318 | |||||
LONG-TERM LIABILITIES |
||||||
Long-term debt |
624,114 | 643,067 | ||||
Other long-term liabilities |
294,391 | 301,376 | ||||
918,505 | 944,443 | |||||
MINORITY INTEREST |
1,532 | 1,886 | ||||
SHAREHOLDERS EQUITY |
583,034 | 572,564 | ||||
$ | 1,802,399 | $ | 1,831,211 | |||
GREIF, INC. AND SUBSIDIARY COMPANIES
GAAP TO NON-GAAP RECONCILIATION
UNAUDITED
(Dollars in thousands, except per share amounts)
Three months ended April 30, 2004 |
Three months ended April 30, 2003 |
|||||||||||||||||||||||
Diluted per share amounts |
Diluted per share amounts |
|||||||||||||||||||||||
Class A |
Class B |
Class A |
Class B |
|||||||||||||||||||||
GAAP operating profit |
$ | 22,360 | $ | 7,728 | ||||||||||||||||||||
Restructuring charges |
12,278 | 17,449 | ||||||||||||||||||||||
Timberland gains |
(1,364 | ) | (1,568 | ) | ||||||||||||||||||||
Non-GAAP operating profit before restructuring charges and timberland gains |
$ | 33,274 | $ | 23,609 | ||||||||||||||||||||
GAAP net income (loss) |
$ | 8,449 | $ | 0.30 | $ | 0.45 | $ | (4,413 | ) | $ | (0.16 | ) | $ | (0.24 | ) | |||||||||
Restructuring charges, net of tax |
8,496 | 0.29 | 0.45 | 11,865 | 0.43 | 0.64 | ||||||||||||||||||
Timberland gains, net of tax |
(944 | ) | (0.03 | ) | (0.05 | ) | (1,066 | ) | (0.04 | ) | (0.06 | ) | ||||||||||||
Non-GAAP net income before restructuring charges and timberland gains |
$ | 16,001 | $ | 0.56 | $ | 0.85 | $ | 6,386 | $ | 0.23 | $ | 0.34 | ||||||||||||
Six months ended April 30, 2004 |
Six months ended April 30, 2003 |
|||||||||||||||||||||||
Diluted per share amounts |
Diluted per share amounts |
|||||||||||||||||||||||
Class A |
Class B |
Class A |
Class B |
|||||||||||||||||||||
GAAP operating profit |
$ | 29,635 | $ | 22,828 | ||||||||||||||||||||
Restructuring charges |
27,537 | 18,988 | ||||||||||||||||||||||
Timberland gains |
(5,298 | ) | (1,964 | ) | ||||||||||||||||||||
Non-GAAP operating profit before restructuring charges and timberland gains |
$ | 51,874 | $ | 39,852 | ||||||||||||||||||||
GAAP net income |
$ | 5,083 | $ | 0.18 | $ | 0.27 | $ | 518 | $ | 0.02 | $ | 0.02 | ||||||||||||
Restructuring charges, net of tax |
19,056 | 0.67 | 1.02 | 12,912 | 0.46 | 0.69 | ||||||||||||||||||
Timberland gains, net of tax |
(3,666 | ) | (0.13 | ) | (0.20 | ) | (1,336 | ) | (0.05 | ) | (0.07 | ) | ||||||||||||
Cumulative effect of change in accounting principle |
| | | (4,822 | ) | (0.17 | ) | (0.26 | ) | |||||||||||||||
Non-GAAP net income before restructuring charges, timberland gains and cumulative effect of change in accounting principle |
$ | 20,473 | $ | 0.72 | $ | 1.09 | $ | 7,272 | $ | 0.26 | $ | 0.38 | ||||||||||||
GREIF, INC. AND SUBSIDIARY COMPANIES
GAAP TO NON-GAAP RECONCILIATION (CONTINUED)
UNAUDITED
(Dollars in thousands)
Three months ended April 30, |
Six months ended April 30, |
|||||||||||||||
2004 |
2003 |
2004 |
2003 |
|||||||||||||
Industrial Packaging & Services |
||||||||||||||||
GAAP operating profit |
$ | 18,219 | $ | 380 | $ | 15,048 | $ | 2,730 | ||||||||
Restructuring charges |
9,541 | 13,562 | 21,563 | 14,727 | ||||||||||||
Non-GAAP operating profit before restructuring charges |
$ | 27,760 | $ | 13,942 | $ | 36,611 | $ | 17,457 | ||||||||
Paper, Packaging & Services |
||||||||||||||||
GAAP operating profit (loss) |
$ | (230 | ) | $ | 1,030 | $ | 1,954 | $ | 8,547 | |||||||
Restructuring charges |
2,665 | 3,791 | 5,834 | 4,165 | ||||||||||||
Non-GAAP operating profit before restructuring charges |
$ | 2,435 | $ | 4,821 | $ | 7,788 | $ | 12,712 | ||||||||
Timber |
||||||||||||||||
GAAP operating profit |
$ | 4,371 | $ | 6,318 | $ | 12,633 | $ | 11,551 | ||||||||
Restructuring charges |
72 | 96 | 140 | 96 | ||||||||||||
Timberland gains |
(1,364 | ) | (1,568 | ) | (5,298 | ) | (1,964 | ) | ||||||||
Non-GAAP operating profit before restructuring charges and timberland gains |
$ | 3,079 | $ | 4,846 | $ | 7,475 | $ | 9,683 | ||||||||