Corrects "declined" in 12th paragraph with "declared."
Wednesday, industrial packaging products maker Greif, Inc. (GEF) reported an increase in fourth-quarter for the fourth quarter, compared to the year-ago, on lower expenses, lower restructuring charges and gains on sale of assets; despite a decline in revenue.
Fourth-quarter profit rose to $79.3 million or $1.35 per class A share from $60.4 million or $1.03 per class A share.
Greif's income, before special items, increased 20% to $90 million from $75 million in the year-ago period. Earnings rose to $1.53 class A per share from $1.27 class A per share. Analysts expected the company to report earnings of $1.45 for the quarter. Analysts estimates typically exclude one-time items.
Special items include restructuring charges of $9 million and restructuring-related inventory charges of $0.7 million, while last year's results include restructuring charges of $19 million.
Impacting the net income, the company gained 24.6 million on disposal of assets, compared to a gain of $6.8 million in the year-ago period. The company also incurred lower selling, general and administrative expenses of $76.1 million from $87.1 million and lower restructuring charges of $8.8 million from $18.8 million in the prior-year period.
Greif's fourth-quarter revenue declined 23% to $760.5 million from $981.8 million in the year-earlier quarter; comparable to analysts' expectations of $794.35 million for the quarter.
The decline in revenue is attributed to 12% lower selling prices, 10% lower sales volumes and 1% loss in foreign currency exchange. Segment-wise, the $221 million decrease in revenue is due to lower net sales in Industrial Packaging of $177 million and lower sales in Paper Packaging of $51 million; partially offset by higher net sales in Land Management of $7 million.
Greif's full-year profit decreased to $132 million or $2.28 per class A share from $234 million or $3.99 per class A share.
Net income before special items declined to $194 million from $267 million in the year-ago period. Earnings declined to $3.32 per class A share from $4.54 per class A share. Analysts expected earnings of $3.24 for the quarter.
Net sales decreased 26% to $2.8 billion from $3.8 billion due to lower net sales in its Industrial Packaging and Paper Packaging segments.
In 2009, capital expenditure was $125 million, excluding timberland purchases of $1 million, compared with capital expenditure of $143 million, excluding timberland purchases of $3 million, last year.
Greif has declared a quarterly cash dividend of $0.38 per class A share payable on January 1, 2010 to stockholders on record as on December 21, 2009.
Looking ahead, the company's management is cautiously optimistic due to its expectation of continued gradual improvement in sales volumes and the full realization of fiscal 2009 permanent cost reductions. Greif expects earnings in the range of $4.00 to $4.25 per class A share in 2010; comparable to Wall Street expectations of $4.21 per share.
GEF closed Wednesday's regular trading session at $57.46, up $0.34 or 0.60% on the NYSE.
For comments and feedback: editorial@rttnews.com