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U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) June 12, 1998
GREIF BROS. CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 1-566 31-4388903
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) 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 or former address, if changed since last report)
Page 1 of 6 Pages
Index to Exhibits at Page 3
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Item 5. Other Events
On June 12, 1998, Greif Bros. Corporation announced second
quarter results, quarterly cash dividends and a restructuring charge.
In the press release, the Company discussed its plan to
consolidate 18 plants based on a study regarding consolidations to optimize
the operating efficiencies and capabilities of the Company. As a result of
the restructuring, the Company will recognize a charge of approximately
$27.5 million in the third quarter of 1998. A copy of the press release is
included herewith as Exhibit 99.
Item 7. Financial Statements and Exhibits
(a) - (b) Not applicable
(c) Exhibits:
Exhibit Number Description
99 Press Release issued
June 12, 1998
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
Greif Bros. Corporation
DATE: June 12,1998 BY /s/ Michael J. Gasser
Michael J. Gasser, Chairman
and Chief Executive Officer
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INDEX TO EXHIBITS
Exhibit Number Description Pages
99 Press Release issued 4 - 6
June 12, 1998
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Exhibit 99
PRESS RELEASE ISSUED JUNE 12, 1998
FOR IMMEDIATE RELEASE For additional information contact:
Michael J. Gasser
Chairman and Chief Executive Officer
(740) 549-6000
GREIF BROS. CORPORATION
ANNOUNCES SECOND QUARTER RESULTS,
DECLARES QUARTERLY CASH DIVIDEND AND
ANNOUNCES RESTRUCTURING RESERVE AND PLANT CONSOLIDATIONS
DELAWARE, Ohio -- (June 12, 1998) Greif Bros. Corporation (Nasdaq: GBCOA;
GBCOB) today announced results for the six months ended April 30, 1998.
Net sales totaled $360,966,000 for the first half of fiscal 1998 versus
$304,899,000 for the same period last year. Net income increased to
$22,208,000 for the six months ended April 30, 1998, compared to $8,065,000
a year ago.
Michael J. Gasser, Chairman and CEO, stated, "We have been able to
capitalize on the initiatives that we started a year ago, coupled with our
operating strength and improvement in the containerboard market. All of
these factors have enabled us to positively affect our first six months'
results."
The Board of Directors declared quarterly cash dividends on both classes of
the Company's common stock. The dividends, $0.12 per share for Class A
Common Stock and $0.18 per share for Class B Common Stock, are payable on
July 1, 1998 to stockholders of record as of June 22, 1998.
The Company recently completed a study concerning consolidation of
operations in order to optimize operating efficiencies and capabilities.
This included a review of facilities resulting from the recent acquisition
of the industrial container business of Sonoco Products Company (NYSE:SON)
as well as a number of other fibre, steel, plastic and corrugated plants.
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The Company has formulated a plan to consolidate 18 plants and will
recognize a restructuring charge of approximately $27,500,000 in the third
quarter of fiscal 1998. This reserve will primarily include employee
separation costs as well as other anticipated plant closing costs.
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 annualized basis. These
contributions are expected to begin in the latter part of fiscal year 1998;
however, the most significant impact will be realized in fiscal year 1999
when the plan is fully implemented. As part of this consolidation program
the Company will be divesting excess facilities and proceeds will be
recognized at the time of disposition. As a first step in this
consolidation process, the Company announced the closure of one of its
facilities in Charlotte, North Carolina, one of its facilities in Atlanta,
Georgia and the closure of the Company's Carteret, New Jersey facility.
Michael J. Gasser also stated, "Combining plants will allow Greif Bros.
Corporation to be more efficient in delivering to customers the most
innovative and cost effective packaging to meet their needs."
Statements made in this release which state the Company's or management's
intentions, hopes, beliefs, expectations, or predictions of the future are
forward-looking statements. It is important to note that the Company's
actual results could differ materially from those projected in such
forward-looking statements. Additional information concerning factors that
could cause actual results to differ materially from those in the forward-
looking statements are contained in the Company's SEC filings, including
but not limited to the Company's report on Form 10-K and Annual Report for
the year ended October 31, 1997.
Greif Bros. Corporation manufactures and markets a broad variety of
superior quality industrial packaging and components including steel drums,
fibre drums, plastic drums and multiwall bags. The Company is integrated,
from its timberlands to corrugated sheet and box operations, including both
virgin and recycled paper mills. With operations in the United States,
Canada and Mexico, Greif Bros. provides innovative products, services and
solutions to meet the ever changing needs of its customers.
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<TABLE>
GREIF BROS. CORPORATION
FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share amounts)
<CAPTION>
Three months ended April 30, Six Months Ended 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
Total 196,967 159,236 371,961 315,612
Costs and expenses:
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
Total 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
Average Shares (Basic):
Class A Common Stock 10,904,755 10,873,172 10,903,359 10,873,172
Class B Common Stock 12,001,793 12,001,793 12,001,793 12,001,793
Average Shares (Diluted):
Class A Common Stock 10,977,776 10,886,060 10,967,744 10,886,060
Class B Common Stock 12,001,793 12,001,793 12,001,793 12,001,793
Net Income Per Share
(Basic and Diluted):
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>
<TABLE>
<CAPTION>
April 30, 1998 October 31, 1997
<S> <C> <C>
Total Assets $829,497 $550,089
Total Shareholders' Equity $412,668 $400,138
</TABLE>
