Provider of packaging services,
), intends to expand its sheet- feeding network capacity which will
include the addition of a second technologically advanced
corrugator at South Eastern packaging in Concord, NC, by mid-2015.
The second corrugator at Southeastern Operation will comprise
several proprietary technologies developed in these locations. The
new expansion will strengthen Grief's position to offer
differentiated product and service value proposition to customers
and optimize overall portfolio.
Greif has made strategic investments over the last few months in
its Ohio, Michigan and Kentucky operations to add new capabilities
and expand capacity. The expansion of South Eastern packaging is
consistent with its strategy to revive the paper packaging business
through continued investment, which will facilitate intensified
value proposition as it capitalizes on the expansion at
Containerboard mill in Riverville, VA.
Containerboard mill in Riverville, VA, which is nearby the
Southeastern packaging Operation, also went through significant
improvements in Dec 2013. The expansion comprised enhancement of
all sections of the machine, to improve product quality, reduce
costs and increase capacity.
Despite adverse weather conditions, Greif's Paper Packaging segment
posted sales improvement of 5.4% year over year in second-quarter
fiscal 2014 (ended Apr 30, 2014). The segment also reported a
record adjusted operating profit of $26.5 million, up 3.1% from the
year-ago period driven by higher selling prices.
For fiscal 2014, Greif trimmed Earnings before interest, taxes,
depreciation and amortization (EBITDA) guidance in the range of
$475 million to $505 million from the previous band of $490 million
to $540 million. Excluding timberland gains of around $20 million
or 20 cents per share, earnings per share was also lowered to the
new band of $2.48 to $2.80 from $2.60 to $3.15.
However, continual strategic investments and anticipated gradual
global economic recovery should result in moderate sales and volume
Delaware, OH-based Greif manufactures and sells industrial
packaging products, bulk containers, and containerboard and
corrugated products worldwide. The company provides services such
as blending, filling, packaging and recycling of industrial
containers for a wide range of industries. Greif also manages
timber properties in North America and offers land management
Greif currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same sector include
Crown Holdings Inc.
Graphic Packaging Holding Co.
Sonoco Products Co.
). All of these companies hold a Zacks Rank #2 (Buy).
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GREIF INC (GEF): Free Stock Analysis Report
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