SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended April 30, 1998 Commission File Number 1-566
GREIF BROS. CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 31-4388903
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
425 Winter Road, Delaware, Ohio 43015
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (740) 549-6000
Not Applicable
Former name, former address and former fiscal year, if changed since last
report.
Indicated by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
Yes _X_. No ___.
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the close of the period covered by this report:
Class A Common Stock 10,905,672 shares
Class B Common Stock 12,001,793 shares
<PAGE> 2
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share amounts)
<TABLE>
<CAPTION>
Three months ended Six Months Ended
April 30, April 30,
1998 1997 1998 1997
<S> <C> <C> <C> <C>
Net sales $191,269 $152,529 $360,966 $304,899
Other income:
Gain on timber sales 3,382 2,058 6,169 3,597
Interest and other 2,316 4,649 4,826 7,116
196,967 159,236 371,961 315,612
Costs and expenses
(including depreciation
of $17,502 in 1998 and
$14,305 in 1997):
Cost of products sold 153,632 134,921 291,809 266,250
Selling, general and
administrative 21,272 17,812 41,596 35,024
Interest 2,201 923 3,431 1,673
177,105 153,656 336,836 302,947
Income before income taxes 19,862 5,580 35,125 12,665
Taxes on income 7,270 2,000 12,917 4,600
Net income $ 12,592 $ 3,580 $ 22,208 $ 8,065
</TABLE>
Net income per share (based on the average number of shares outstanding during
the period):
Based on the assumption that earnings were allocated to Class A and Class B
Common Stock to the extent that dividends were actually paid for the year and
the remainder were allocated as they would be received by shareholders in the
event of liquidation, that is, equally to Class A and Class B shares, share
and share alike.
<TABLE>
Basic and Diluted:
<S> <C> <C> <C> <C>
Class A Common Stock $0.52 $0.12 $0.91 $0.26
Class B Common Stock $0.58 $0.18 $1.02 $0.43
</TABLE>
Due to the special characteristics of the Company's two classes of stock
(see Note 1),earnings per share can be calculated upon the basis of varying
assumptions, none of which, in the opinion of management, would be free from
the claim that it fails fully and accurately to represent the true interest of
the shareholders of each class of stock and in the retained earnings.
See accompanying Notes to Consolidated Financial Statements.
<PAGE> 3
GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
<TABLE>
<CAPTION>
ASSETS
April 30, October 31,
1998 1997
<S> <C> <C>
CURRENT ASSETS
Cash and cash equivalents $ 55,729 $ 17,719
Canadian government securities 7,393 7,533
Trade accounts receivable-
less allowance of $1,880 for
doubtful items ($847 in 1997) 109,766 81,582
Inventories 66,780 44,892
Prepaid expenses and other 20,688 21,192
Total current assets 260,356 172,918
LONG TERM ASSETS
Goodwill - less amortization 125,415 17,352
Other long term assets 21,786 22,022
147,201 39,374
PROPERTIES, PLANTS AND EQUIPMENT-at cost
Timber properties-less depletion 7,546 6,884
Land 16,297 11,139
Buildings 155,636 139,713
Machinery, equipment, etc. 501,282 424,177
Construction in progress 19,954 17,546
Less accumulated depreciation (278,775) (261,662)
421,940 337,797
$829,497 $550,089
</TABLE>
See accompanying Notes to Consolidated Financial Statements.
<PAGE> 4
GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
<TABLE>
<CAPTION>
LIABILITIES AND SHAREHOLDERS' EQUITY
April 30, October 31,
1998 1997
<S> <C> <C>
CURRENT LIABILITIES
Accounts payable $ 46,183 $ 35,711
Current portion of long term obligations 201 8,504
Accrued payrolls and employee benefits 18,019 13,821
Taxes on income 979 596
Other current liabilities 11,589 1,776
Total current liabilities 76,971 60,408
LONG TERM OBLIGATIONS 265,784 43,648
DEFERRED INCOME TAXES 31,517 29,740
OTHER LONG TERM LIABILITIES 42,557 16,155
Total long term liabilities 339,858 89,543
SHAREHOLDERS' EQUITY (Note 1)
Capital stock, without par value 9,848 9,739
Class A Common Stock:
Authorized 32,000,000 shares;
Issued 21,140,960 shares;
Outstanding 10,905,672 shares
(10,900,672 in 1997)
Class B Common Stock:
Authorized and issued 17,280,000 shares;
Outstanding 12,001,793 shares
Treasury Stock, at cost (41,863) (41,868)
Class A Common Stock : 10,235,288 shares
(10,240,288 in 1997)
Class B Common Stock : 5,278,207 shares
Retained earnings 452,941 437,550
Cumulative translation adjustment (8,258) (5,283)
412,668 400,138
$829,497 $550,089
</TABLE>
See accompanying Notes to Consolidated Financial Statements.
<PAGE> 5
GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
<TABLE>
<CAPTION>
For the six months ended April 30, 1998 1997
<S> <C> <C>
Cash flows from operating activities:
Net income $ 22,208 $ 8,065
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation, depletion and amortization 18,530 14,916
Deferred income taxes 1,783 2,654
Increase (decrease) in cash from changes in certain
assets and liabilities, net of effects from
acquisitions:
Trade accounts receivable (105) 8,912
Inventories (4,721) (208)
Prepaid expenses and other 739 (436)
Other long term assets 2,301 (577)
Accounts payable 2,184 (10,635)
Accrued payrolls and employee benefits 1,112 (1,911)
Taxes on income (200) (5,061)
Other current liabilities (1,782) 3,720
Other long term liabilities (2,344) (1,463)
Net cash provided by operating activities 39,705 17,976
Cash flows from investing activities:
Acquisitions of companies, net of cash acquired (187,685) (5,188)
Disposals of investments in government
securities 140 3,788
Purchases of properties, plants and equipment (18,440) (22,224)
Net cash used by investing activities (205,985) (23,624)
Cash flows from financing activities:
Proceeds on long term debt 269,000 35,000
Payments on long term debt (55,167) (25,277)
Exercise of stock options 109 --
Dividends paid (6,817) (10,275)
Net cash provided by (used in) financing
activities 207,125 (552)
Foreign currency translation adjustment (2,835) (1,292)
Net increase (decrease) in cash and cash equivalents 38,010 (7,492)
Cash and cash equivalents at beginning of period 17,719 26,560
Cash and cash equivalents at end of period $ 55,729 $ 19,068
</TABLE>
See accompanying Notes to Consolidated Financial Statements.
<PAGE> 6
GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
APRIL 30, 1998
NOTE 1 - CAPITAL STOCK AND RETAINED EARNINGS
Class A Common Stock is entitled to cumulative dividends of 1 cent a
share per year after which Class B Common Stock is entitled to non-cumulative
dividends up to 1/2 cent per share per year. Further distribution in any year
must be made in proportion of 1 cent a share for Class A Common Stock to 1 1/2
cents a share for Class B Common Stock. The Class A Common Stock shall have no
voting power nor shall it be entitled to notice of meetings of the stockholders
all rights to vote and all voting power being vested exclusively in the Class B
Common Stock unless four cumulative dividends upon the Class A Common
Stock are in arrears. There is no cumulative voting.
NOTE 2 - DIVIDENDS PER SHARE
The following dividends per share were paid during the period indicated:
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
April 30, April 30,
1998 1997 1998 1997
<S> <C> <C> <C> <C>
Class A Common Stock $0.12 $0.12 $0.24 $0.36
Class B Common Stock $0.18 $0.18 $0.35 $0.53
</TABLE>
NOTE 3 - CALCULATION OF NET INCOME PER SHARE
Net income per share was calculated using the following number of shares
for the period presented:
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
April 30, 1998: April 30, 1998:
Basic Diluted Basic Diluted
<S> <C> <C> <C> <C>
Class A Common Stock 10,904,755 10,977,776 10,903,359 10,967,744
Class B Common Stock 12,001,793 12,001,793 12,001,793 12,001,793
</TABLE>
<PAGE> 7
NOTE 3 - CALCULATION OF NET INCOME PER SHARE (continued)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
April 30, 1997: April 30, 1997:
Basic Diluted Basic Diluted
<S> <C> <C> <C> <C>
Class A Common Stock 10,873,172 10,886,060 10,873,172 10,886,060
Class B Common Stock 12,001,793 12,001,793 12,001,793 12,001,793
</TABLE>
The diluted shares assume conversion of stock options. There are 164,100
options that are antidilutive for 1997.
NOTE 4 - INVENTORIES
Inventories are comprised principally of raw materials and are stated at the
lower of cost (principally on last-in, first-out basis) or market.
NOTE 5 - ACQUISITIONS
On March 30, 1998, pursuant to the terms of a Stock Purchase Agreement
between Greif Bros. Corporation (the "Company") and Sonoco Products
Company ("Sonoco"), the Company acquired the industrial containers business
of Sonoco by purchasing all of the outstanding shares of KMI Continental Fibre
Drum, Inc., a Delaware corporation ("KMI"), Sonoco Plastic Drum, Inc., an
Illinois corporation ("SPD"), GBC Holding Co., a Delaware corporation
("GBC Holding"), and Fibro Tambor, S.A. de C.V., a Mexican corporation
("Fibro Tambor") and the membership interest of Sonoco in Total Packaging
Systems of Georgia, LLC, a Delaware limited liability company ("TPS"). KMI,
SPD, GBC Holding, Fibro Tambor, TPS and their respective subsidiaries are in
the business of manufacturing and selling plastic drums and fibre drums
principally in the United States and Mexico and refurbishing and
reconditioning plastic drums principally in the United States and Mexico.
On March 30, 1998, the Company entered into an agreement with Sonoco to
acquire its intermediate bulk containers business, which the parties intend to
finalize as soon as receipt of necessary approvals are obtained. Pending
receipt of such approvals, the Company will market and sell intermediate
bulk containers for Sonoco under a distributorship agreement.
As consideration for the shares of KMI, SPD, GBC Holding and Fibro
Tambor and the membership interest of Sonoco in TPS, the Company paid
$185,395,000 in cash. The purchase price was determined through negotiations.
<PAGE> 8
NOTE 5 - ACQUISITIONS (CONTINUED)
The acquisition of the industrial containers business of Sonoco has been
accounted for using the purchase method of accounting and, accordingly, the
purchase price has been allocated to the assets purchased and liabilities
assumed based upon the fair values at the date of acquisition. The excess
of the purchase price over the fair values of the net assets acquired of
$109,090,000 has been recorded as goodwill. The goodwill is being amortized
on a straight-line basis over twenty-five years based on careful consideration
regarding the age of the acquired companies, their customers and the risk
of obsolescence of their products. For tax purposes, goodwill is being
amortized over fifteen years.
The Consolidated Financial Statements include the operating results of the
acquired businesses from the date of acquisition. The following summarized pro
forma (unaudited) information assumes the acquisition had occurred on
November 1, 1996 (Dollars in thousands, except per share amounts):
<TABLE>
<CAPTION>
For the six months
ended April 30,
1998 1997
<S> <C> <C>
Net sales $431,804 $392,536
Net income $ 19,980 $ 6,552
Basic and Diluted Earnings Per Share:
Class A Common Stock $0.81 $0.20
Class B Common Stock $0.92 $0.37
</TABLE>
The above amounts reflect adjustments for interest expense related to the
incremental debt issued for the purchase, amortization of goodwill and
depreciation expense on the revalued property, plant and equipment.
<PAGE> 9
NOTE 6 - LONG TERM OBLIGATIONS
On March 30, 1998, the Company entered into a Credit Agreement with
various financial institutions, as banks, and KeyBank National Association, as
agent, which provides a revolving credit facility of up to $325 million. As
of April 30, 1998, the Company has borrowed $265 million primarily to purchase
the industrial containers business of Sonoco and to consolidate all of the
Company's other long term borrowings. In addition, the Company has borrowed
funds in anticipation of closing on the purchase of the intermediate bulk
containers business of Sonoco. The interest rate is either based on the
prime rate or LIBOR rate plus a calculated margin amount. At April 30, 1998,
the interest rate is 6.17%. The revolving credit loans are due on March 31,
2003. These obligations contain covenants related to the financial position
and results of operations of the Company.
During 1998, the Company entered into an interest rate swap agreement
with a notional amount of $140 million which will be reduced each year based on
an amortization schedule. The interest rate swap was entered into to help
manage the Company's exposure to variable rate debt. Under the agreement, the
Company receives interest from the counterparty equal to the LIBOR rate and
pays interest to the counterparty at a fixed rate of 6.15%. The differential
to be paid and received under this agreement is recorded as an adjustment
to interest expense and is included in interest receivable or payable. The
interest rate swap agreement expires on March 30, 2008.
NOTE 7 - SUBSEQUENT EVENTS
Subsequent to April 30, 1998, the Company approved a plan to consolidate
the operations of a number of its locations. The consolidation will be made to
combine certain duplicate facilities, due to the Company's recent acquisitions,
and other locations together to optimize operating efficiencies and
capabilities. In addition, a number of other fibre, steel, plastic and
corrugated plants will be closed. As a result, there will be a pretax
restructuring charge of approximately $27.5 million, primarily consisting of
employee separation costs and other anticipated closing costs, during the
third quarter of 1998.
During May 1998, the Company agreed to form a joint venture named
CorrChoice to operate the sheet feeder plants of Michigan Packaging Company, a
subsidiary of the Company, and Ohio Packaging Corporation. Completion of the
joint venture is subject to, among other things, obtaining necessary approvals
of regulatory authorities.
<PAGE> 10
NOTE 8 - RECLASSIFICATIONS
Certain prior period amounts have been reclassified to conform to the 1998
presentation.
<PAGE> 11
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Results of Operations
Historically, revenues or earnings may or may not be representative of
future operations because of various economic factors. The following
comparative information is presented for the six-month periods ended April 30,
1998 and April 30, 1997.
Net sales increased $56.1 million or 18.4% during the current period
compared to the previous period.
The net sales of the containerboard segment increased by $31.8 million in
comparison to the prior period. This increase was primarily the result of
$23.5 million higher net sales in the paper mills which was significantly
affected by the improved sales prices of its products. The higher sales
prices were caused by the overall improvement of the containerboard market.
In addition, the purchase of Independent Container, Inc. and Centralia
Container, Inc. in May 1997 and June 1997, respectively, contributed $20.8
million in net sales as a result of the additional sales volume. These
increases were partially offset by the disposal of the Company's wood
components plants, with prior period net sales of $22.6 million, in
Kentucky, California, Washington and Oregon during August 1997.
The net sales of the industrial shipping containers segment increased by
$24.3 million in comparison to the prior period. This increase was primarily
the result of the acquisition of the industrial containers business of
Sonoco Products Company ("Sonoco") on March 30, 1998. The acquisition
contributed $18.0 million of net sales during April 1998. In addition,
net sales increased due to the purchase of two steel drum operations
located in Merced, California and Oakville, Ontario, Canada during
March 1997 which contributed $7.7 million of incremental net sales in
the current period.
Other income remained about the same in the current period primarily due
to $2.6 million of additional sales of timber and timber properties compared
to a gain on the sale of an injection molding facility in the prior period.
The cost of products sold as a percentage of sales decreased from 87.3%
last period to 80.8% this period. This decrease is primarily the result of
higher sales prices of products in the containerboard segment without a
corresponding increase in the cost of products sold.
<PAGE> 12
The increase of $6.6 million in selling, general and administrative expense
is due primarily to additional expenses related to the acquisitions in March
of the current period and March, May and June of the prior period. In
addition, the amortization of goodwill for these acquisitions contributed to
the higher expense in the current period.
The increase in interest expense is due to the higher average debt during
the first half of fiscal 1998 as compared to the prior period.
Liquidity and Capital Resources
As reflected by the Consolidated Balance Sheet, elsewhere in this report
and discussed in greater detail in the 1997 Annual Report to Shareholders, the
Company is dedicated to maintaining a strong financial position. It is our
belief that this dedication is extremely important during all economic times.
As discussed in the 1997 Annual Report, the Company is subject to the
economic conditions of the market in which it operates. During this period,
the Company has been able to utilize its financial strength to meet its
continued business needs.
The current ratio of 3.4:1 as of April 30, 1998 is an indication of the
Company's continued dedication to strong liquidity.
Capital expenditures were $18 million during the six months ended April
30, 1998. These capital expenditures were principally needed to replace and
improve equipment.
On March 30, 1998, the Company acquired all of the outstanding shares of
KMI Continental Fibre Drum, Inc., Fibro Tambor, S.A. de C.V., and Sonoco
Plastic Drum, Inc. from Sonoco Products Company ("Sonoco") and the interest of
Sonoco in Total Packaging Systems of Georgia, LLC (the "industrial containers
business") for approximately $185 million in cash. The industrial containers
business includes twelve fibre drum plants and five plastic drum plants along
with facilities for research and development, packaging services and
distribution. In addition, the Company entered into an agreement with Sonoco
to acquire its intermediate bulk containers business, which the parties
intend to finalize as soon as necessary approvals are obtained. Pending
receipt of such approvals, the Company will market and sell intermediate
bulk containers for Sonoco under a distributorship agreement.
The purchase of the industrial containers business of Sonoco has been the
primary reason for the increase in accounts receivable, inventories, property,
plant and equipment and accounts payable since October 31, 1997.
<PAGE> 13
The increase in other current liabilities is due to the recording of a
restructuring reserve of $8.8 million for certain Sonoco locations, purchased
on March 30, 1998, that will be closed. This amount primarily relates to
severance arrangements and other costs of closing the plants. In addition,
there was a write-down of the fair values of the property, plant and
equipment for these locations.
The increase in other long term liabilities is primarily the result of the post-
retirement health care benefits related to certain employees of the acquired
businesses of Sonoco. The excess of the purchase price over the fair values
of the net assets acquired increased goodwill.
During 1998, the Company entered into a credit agreement which provides
for a revolving credit facility of up to $325 million. The Company has
borrowed money under the credit facility to purchase the industrial containers
business of Sonoco and repay the other long term obligations of the Company.
In addition, the Company has borrowed funds in anticipation of closing on
the purchase of the intermediate bulk containers business of Sonoco. Since
the acquisition of the intermediate bulk containers business has not been
finalized, cash and cash equivalents are higher at April 30, 1998 due to the
funds being held.
The Company has embarked on a program to implement a new
management information system. The estimated cost of the project is
approximately $20 million and is expected to be completed during 1999. As of
April 30, 1998, the Company has spent approximately $8 million towards the
project. The purpose of the program focuses on using information technology to
link operations to become a low cost producer and more effectively service our
customers. As a result of this undertaking, the Company believes that its year
2000 compliance matters will be addressed since most of its current systems
will be replaced.
In addition to the intermediate bulk containers business of Sonoco and the
new management information system, as described above, the Company has
approved future purchases of approximately $12 million. These purchases are
primarily to replace and improve equipment.
Borrowing and self-financing have been the primary sources for past
capital expenditures and acquisitions. The Company anticipates financing
future capital expenditures in a like manner.
<PAGE> 14
Subsequent to April 30, 1998, the Company approved a plan to consolidate
some of its locations in order to optimize operating efficiencies and
capabilities. The plan was a result of a study to determine whether certain
locations, either existing or newly acquired, should be closed or relocated
to a different facility. Eighteen facilities have been identified in the
consolidation plan. As a result of this plan, the Company will recognize a
restructuring charge of approximately $27.5 million in the third quarter.
The charge relates primarily to severance costs and other anticipated costs
of closing the facilities. Management believes, upon completion of the
consolidation, positive contributions to earnings from these actions could
approximate an amount equal to the restructuring charge on an annual basis.
These contributions are expected to begin in the latter part of 1998;
however, the most significant impact will be realized in 1999 when the plan
is fully implemented.
During May 1998, the Company announced a plan to form a joint venture
named CorrChoice to operate the sheet feeder plants of Michigan Packaging
Company, a subsidiary of the Company, and Ohio Packaging Corporation.
Completion of the joint venture is subject to obtaining necessary approvals of
regulatory authorities.
SAFE HARBOR STATEMENT UNDER THE PRIVATE
SECURITIES LITIGATION REFORM ACT OF 1995
Except for the historical information contained herein, the matters
discussed in this Form 10-Q contain certain forward-looking statements which
involve risks and uncertainties, including, but not limited to economic,
competitive, governmental and technological factors affecting the Company's
operations, markets, services and related products, prices and other factors
discussed in the Company's filings with the Securities and Exchange
Commission. The Company's actual results could differ materially from those
projected in such forward-looking statements.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT
MARKET RISK
Not applicable at this time.
<PAGE> 15
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a.) Exhibits.
Exhibit Number Description
2 Stock Purchase Agreement dated March 30, 1998
between Greif Bros. Corporation and Sonoco
Products Company (incorporated by reference to
Exhibit 2 of the Form 8-K filed on April 14,
1998).
27 Financial Data Schedule (contained herein).
99 Credit Agreement, dated as of March 30, 1998,
among Greif Bros. Corporation, as Borrower,
Various Financial Institutions, as Banks, and
KeyBank National Association, as Agent
(incorporated by reference to Exhibit 99(b) of
the Form 8-K filed on April 14, 1998).
(b.) Reports on Form 8-K.
On April 14, 1998, the Company filed a Current Report on Form 8-K
that described under Item 2 the Stock Purchase Agreement between
Greif Bros. Corporation and Sonoco Products Company ("Sonoco").
Pursuant to the Stock Purchase Agreement, the Company purchased
all of the outstanding shares of KMI Continental Fibre Drum, Inc.,
Sonoco Plastic Drum, Inc., GBC Holding Co. and Fibro Tambor and
the membership interest of Sonoco in Total Packaging Systems of
Georgia, LLC. In addition, the Company entered into a Credit
Agreement which provides a revolving credit facility up to $325
million. In accordance with Items 7(a)(4) and 7(b)(2), the financial
statements of the acquired businesses and pro forma financial
information were filed in a Form 8-K/A on June 12, 1998.
On May 6, 1998, the Company filed a Current Report on Form 8-K that
described under Item 5 an agreement to form a joint venture to
operate the sheet feeder plants of Michigan Packaging Company, a
subsidiary of the Company, and Ohio Packaging Corporation. The
joint venture will be named CorrChoice.
OTHER COMMENTS
The information furnished herein reflects all adjustments which are, in the
opinion of management, necessary for a fair presentation of the consolidated
balance sheet as of April 30, 1998 and October 31, 1997, the consolidated
statements of income for the three and six month periods ended April 30, 1998
and 1997, and the consolidated statement of cash flows for the six month
periods then ended. These financial statements are unaudited; however, at
year-end an audit will be performed for the fiscal year by independent
accountants.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Company has duly caused this report to be signed on its behalf by the
undersigned thereto duly authorized.
Greif Bros. Corporation
(Registrant)
Date: June 12, 1998 /s/ Joseph W. Reed
Joseph W. Reed
Chief Financial Officer and Secretary
(Duly Authorized Signatory)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the Form
10-Q and is qualified in its entirety by reference to such Form 10-Q.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1998
<PERIOD-END> APR-30-1998
<CASH> 55,729
<SECURITIES> 7,393
<RECEIVABLES> 111,646
<ALLOWANCES> (1,880)
<INVENTORY> 66,780
<CURRENT-ASSETS> 260,356
<PP&E> 700,715
<DEPRECIATION> (278,775)
<TOTAL-ASSETS> 829,497
<CURRENT-LIABILITIES> 76,971
<BONDS> 265,784
0
0
<COMMON> 9,848
<OTHER-SE> 402,820
<TOTAL-LIABILITY-AND-EQUITY> 829,497
<SALES> 360,966
<TOTAL-REVENUES> 371,961
<CGS> 291,809
<TOTAL-COSTS> 291,809
<OTHER-EXPENSES> 41,596
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 3,431
<INCOME-PRETAX> 35,125
<INCOME-TAX> 12,917
<INCOME-CONTINUING> 22,208
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 22,208
<EPS-PRIMARY> 0.91<F1>
<EPS-DILUTED> 0.91<F2>
<FN>
<F1>Amount represents the basic earnings per share for the Class A Common Stock.
The basic earnings per share for the Class B Common Stock are $1.02.
<F2>Amount represents the diluted earnings per share for the Class A Common
Stock. The diluted earnings per share for the Class B Common Stock are $1.02.
</FN>
</TABLE>
