Greif Inc. (GEF, GEF-B) Wednesday reported an increase in second-quarter profit, as last year's results were weighed down by restructuring charges.
Delaware, Ohio-based Greif's profit for the second quarter rose to $40.9 million or $0.70 per class A share from $39.4 million or $0.67 per class A share last year.
Last year results included restructuring charges and acquisition related costs of $0.14 per share.
Greif's revenues dropped to $1.09 billion from $1.10 billion a year ago. The decline was due mainly to lower selling prices and the negative impact of foreign currency translation which offset a modest increase in volumes.
Analysts polled by Thomson Reuters expected the company to earn $0.69 per share on revenues of $1.11 billion for the second quarter.
Commenting on the results, Chief Executive David Fischer said, "Overall volumes were modestly higher compared with the same period last year while material costs and restructuring charges were both lower, which contributed to an increase in our consolidated results for the second quarter of 2013."
Segment wise, rigid industrial packaging unit's sales dropped to to $773.4 million from $803.0 million last year, while flexible products division's sales decreased to $112.4 million from 113.9 million a year ago. Meanwhile, paper packaging segment's sales rose to $194.5 million from $173.4 million helped by higher selling prices.
Moving ahead, Greif expects modest sales growth benefiting from the agricultural sector and stable raw material costs and continuation of favorable market conditions in Paper Packaging business in the second half of 2013.
GEF closed Wednesday's trading at $51.26, down $0.96 or 1.84%, in after hours trade.
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