(RTTNews) - Wednesday, industrial packaging products and services provider Greif Inc. (GEF: News ) reported lower earnings for its third quarter, due to lower sales in all of the three segments amid global economic downturn. However, the company's quarterly earnings per share, excluding special items, came in above the Street's estimate. Further, the company tightened its fiscal 2009 earnings guidance.

The Delaware, Ohio-based company reported net income for the third quarter of $39.7 million or $0.68 per Class A share, compared to $64.6 million or $1.10 per Class A share in the year-ago quarter.

The company's third quarter of fiscal 2009 net income included restructuring charges of $10.7 million after tax and restructuring-related inventory charges of $1.2 million after tax. The year-ago results included restructuring charges of $5.0 million net of tax and gain on timberland disposals, $0.1 million net of tax.

Excluding the special items, non-GAAP net income for the quarter of $51.6 million or $0.88 per Class A share, compared to $69.5 million or $1.18 per Class A share in the year-ago quarter.

On average, five analysts polled by Thomson Reuters expected the company to earn $0.86 per share for the quarter. Analysts' estimates typically exclude special items.

The company noted that its third quarter results were benefited from significant permanent cost reduction actions and gradually improving volumes, especially during the final month of the quarter.

Net sales for the quarter decreased to $717.6 million from $1.03 billion in the prior-year quarter. Four analysts had a revenue consensus of $768.55 million for the third quarter.
Net sales decreased 31% over last year, due to lower sales in Industrial Packaging, Paper Packaging and Timber divisions. Excluding the impact of foreign currency translation, net sales declined 24%, due to lower sales volumes and lower selling prices due to the pass-through of lower raw material costs.

Segment wise, Industrial Packaging net sales decreased 30% to $594.2 million from $852.4 million in the third quarter of 2008, as a result of lower sales volumes and lower selling prices.

Paper Packaging net sales were $120.2 million, down from $177.6 million in the third quarter of 2008, primarily due to lower sales volumes and lower containerboard selling prices compared to the same quarter of the previous year.

Timber net sales were $3.2 million in the third quarter of 2009, compared to $4.1 million in the similar quarter of 2008.

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