New Threads Only:  Add to Google Reader or Homepage
New Threads & Replies:  Add to Google Reader or Homepage
Forums are for serious investors only. GuruFocus Forum Rules.

Forum List » Business News and Headlines
SEC Filings, Earing Reports, Press Releases
New Topic Search
Goto Thread: PreviousNext
Goto: Forum ListMessage ListNew TopicSearchLog In
Greif Inc. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: March 2, 2012 03:38PM

Greif Inc. (GEF) filed Quarterly Report for the period ended 2012-01-31. Greif Inc has a market cap of $2.4 billion; its shares were traded at around $48.91 with a P/E ratio of 13.7 and P/S ratio of 0.6. The dividend yield of Greif Inc stocks is 3.3%. Greif Inc had an annual average earning growth of 12.8% over the past 10 years. GuruFocus rated Greif Inc the business predictability rank of 4-star.



Highlight of Business Operations:

Net sales were $992.7 million for the first quarter 2012 compared with $943.8 million for the same period in 2011. The 5 percent increase was due to higher sales volumes (3 percent), increased selling prices (4 percent) primarily resulting from the pass-through of higher raw material costs and the negative impact of foreign currency translation (2 percent). The 3 percent increase in sales volumes included a 7 percent increase from acquisitions partially offset by a 4 percent decrease in sales volumes on a same-structure basis. This decrease was due to weak market conditions in the Rigid Industrial Packaging & Services and Flexible Products & Services segments, especially in Europe, compared with the same period last year. The decrease in sales volume within our Flexible Products & Services segment occurred later than in our Rigid Industrial Packaging & Services segment due to differences in their respective supply chains. Sales volumes in the Paper Packaging segment increased by 9 percent during first quarter 2012 compared with the same period last year. The first quarter 2012 net sales change by segment compared with the same period last year was Rigid Industrial Packaging & Services ($49.4 million increase), Paper Packaging ($11.3 million increase), Land Management ($1.4 million increase) and Flexible Products & Services ($13.2 million decrease).

SG&A expenses were $112.6 million for the first quarter 2012 compared with $106.5 million for the first quarter 2011. The $6.1 million increase was primarily due to the inclusion of SG&A expenses for acquired companies and higher professional fees, which were partially offset by a favorable impact of foreign currency translation, and lower acquisition-related costs. Acquisition-related costs of $2.2 million and $8.5 million were included in SG&A expenses for the first quarters of 2012 and 2011, respectively. SG&A expenses were 11.3 percent of net sales for the first quarters of 2012 and 2011.

Operating profit was $32.8 million for the first quarter 2012 compared with $46.1 million for the same period last year. Strong results in North America were primarily offset by weak results in Europe and Asia. There were $7.3 million of restructuring charges for the first quarter of 2012, primarily related to contingency actions implemented during the quarter, compared with $2.2 million for the same period last year, and $1.7 million and $1.5 million of acquisition-related costs for the first quarters 2012 and 2011, respectively.

Operating profit was $2.3 million for the first quarter 2012 compared with $1.4 million for the first quarter 2011. The negative impact of lower sales volumes and higher restructuring charges was more than offset by lower acquisition-related costs. EBITDA was $6.5 million for the first quarter 2012 and $6.9 million for first quarter 2011. Depreciation, depletion and amortization expense was $3.9 million and $4.2 million for first quarters of 2012 and 2011, respectively.

Operating profit was $20.2 million for the first quarter 2012 versus $18.1 million for the first quarter 2011. Higher sales volumes and lower OCC costs contributed to this increase compared with a year ago. EBITDA was $28.4 million for the first quarter 2012 compared with $25.9 million for the first quarter 2011 due to the same factors noted above. Depreciation, depletion and amortization expense was $7.9 million and $7.7 million for first quarters of 2012 and 2011, respectively.

Read the The complete Report



Stocks Discussed: GEF,
Rate this post:




Sorry, only registered users may post in this forum.

Please Login if you have an account or Create a Free Account if you don't




Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial