Greif sees quarterly income dip

Greif has posted a second quarter net income of $36.8m, down from the $50.9m announced 12 months ago, from stable net sales worth $1.1bn. "Our second quarter results reflected generally stable market conditions and gradually improving volumes in the Rigid Industrial Packaging and Services segment," says president and CEO David B Fischer. "Solid performances by businesses operating in North America were partially offset by lower volumes and market pressure for businesses operating in Europe. While we have seen modest improvements in our European businesses, we continue to monitor these markets closely given continuing broader economic uncertainty in the region. We are pleased with the results of our focus on cash flow and expect to benefit further from acquisition integration initiatives during the second half of this year."

In terms of Rigid Industrial Packaging and Services, net sales increased 8 per cent year-on-year from $743.9m to $802.9m. However, on a same-structure basis, sales volumes declined 5 per cent due to economic conditions and market pressure, primarily in Europe. Operating profit similarly fell from $66.1m 12 months ago to $54.8m, with EBITDA also down from $82.8m to $80.9m. Meanwhile, the company's Flexible Products and Services division saw its net sales drop over the same period from $134.8m to $113.9m. This resulted in an operating loss of $1.9m and an EBITDA of $0.5m compared to a prior year operating profit of $2m and an EBITDA of $4.6m.

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