Industrial packaging products maker Greif, Inc. (GEF), Wednesday said its second-quarter profit plunged from the same quarter a year ago, negatively impacted by one-time charges as well as a decline in revenues. Earnings per share for the second quarter, however, were above analysts' estimate. Greif reaffirmed its earnings guidance for the fiscal year 2009.
Delaware, Ohio-based Greif's net income for the second quarter plummeted to $12.1 million or $0.21 per class-A share from $48.7 million or $0.82 per class-A share in the same quarter last year, hurt by the negative impacts of the economic slowdown.
The company, however, stated that it now expects annual savings of about $100 million in fiscal 2009 related to plans implemented to offset a significant portion of the impact resulting from weak market conditions.
Excluding special items, net income for the second quarter declined to $30.6 million or $0.53 per Class-A share from $54.3 million or $0.92 per Class-A share in the same quarter a year ago.
On average, five analysts polled by Thomson Reuters expected second-quarter earnings of $0.51 per share. Analysts' estimates typically exclude special items such as one-time charges or gains.
The company's operating profit for the second quarter declined to $30.3 million from $81.5 million in the same quarter last year. Excluding special one-time charges, operating profit for the second quarter was $58.1 million, down from $88.7 million in the corresponding quarter last year.
Revenues for the second quarter dropped to $647.9 million from $918.0 million in the comparable quarter last year, below analysts' view of $748.00 million.
On a segmental basis, Industrial packaging net sales for the second quarter decreased 30% to $527.1 million from $748.0 million in the same quarter a year ago, while net sales from Paper Packaging decreased to $118.1 million from $163.4 million in the corresponding quarter last year.
Restructuring charges for the second quarter was $20.3 million, up from $7.3 million incurred in the same quarter a year ago. The company also recorded restructuring related inventory charges of $7.5 million and debt extinguishments charges of $0.8 million for the second quarter.
For the six -month period, net income declined sharply to $13.4 million or $0.24 per Class-A share from $109.3 million or $1.85 per Class-A share in the same period a year ago.
Revenues for the six-month period declined to $1.314 billion from $1.764 billion in the same period last year.
Looking forward to the fiscal year 2009, the company reaffirmed its earnings guidance and continues to expect earnings excluding special items in the range of $3.25 per Class-A share to $3.75 per Class-A share. The Street currently expects earnings of $3.30 per share for the fiscal year 2009.
GEF closed Wednesday's trading at $48.51, down $1.25 or 2.51%, on the NYSE.In the after hours, the stock lost $0.02 or 0.04%, trading at $48.49
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