) reported third quarter fiscal 2013 (ended Jul 31, 2013) results
with adjusted earnings of 84 cents per share, up 21.7% from 69
cents earned in the year-ago quarter. The results, however,
missed the Zacks Consensus Estimate of 89 cents.
Including special items, earnings per share in the quarter were
80 cents compared with 64 cents in the year-ago quarter.
Revenues in the reported quarter increased to $1,129.7 million
from $1,102.9 million in the year-ago quarter. The top line
lagged the Zacks Consensus Estimate of $1,156 million. The 2.4%
year-over-year increase in net sales was primarily attributable
to the impact of a 1.2% increase in selling prices along with a
1% increase in volumes.
Cost of sales increased to $912.4 million in the reported quarter
from $900.7 million in the prior-year quarter. Gross profit
improved 7.5% year over year to $217.3 million.
Selling, general and administrative expenses increased 1.2% year
over year to $118.2 million. Adjusted operating profit went up
11.8% year over year to $101 million. Adjusted EBITDA (earnings
before interest, taxes, depreciation and amortization) rose 5.4%
to $136.5 million from $129.5 million in the year-ago quarter.
Rigid Industrial Packaging & Services:
The segment reported sales of $802.2 million, down from $805.2 in
the year-ago quarter. The decline was due to a negative impact of
1% from lower selling prices, partly offset by 0.5% increase in
volume. Sales were also affected by a delayed start to the
agriculture seasons in North America and Europe. Adjusted
operating income increased 1.5% year over year to $61.7 million.
Flexible Products & Services:
Sales increased 0.7% year over year to $110.5 million driven by
5.5% increase in volume and 1.4% positive impact of foreign
currency translation, partly offset by 6.1% decline in selling
prices. However, operating profit in the quarter was nominal
compared to the prior year quarter's operating income of $1.4
Sales increased 14% year over year to $208.4 million, helped by a
0.8% increase in volumes and a benefit of 13.3% from higher
selling prices. The segment reported an adjusted operating profit
of $30.7 million, up 46% from $21 million in the prior-year
quarter. The increase was driven by higher selling prices, higher
volumes and moderately stable input costs.
Sales increased 62% year over year to $8.6 million, driven by
increased timber sales volumes along with higher prices for
timber products. Operating income improved about three fold to
$4.3 million on higher timber sales.
As of Jul 31, 2013, Greif had cash and cash equivalents of $94.9
million, up from $91.5 million as of Oct 31, 2012. Cash flow from
operating activities during the quarter was $79.8 million
compared with $155 million in the prior quarter.
Long-term debt increased to $1.2 billion as of Jul 31, 2013 from
$1.1 billion as of Oct 31, 2012. Debt-to-capitalization ratio
increased to 48% as of Jul 31, 2013 from 47.6% as of Oct 31,
The company reiterated its previous expectation of EBITDA for
fiscal 2013 in the range of $475 million to $500 million. For the
fourth quarter of 2013, Greif expects modest sales growth from
the agricultural sector and stable raw material costs across the
However, the company anticipates that the rigid industrial
packaging business will hurt by continued challenging market
conditions due to delayed agricultural season in Europe and North
America. Its flexible products business will also be negatively
impacted by challenges related to the new facilities.
BALL CORP (BLL): Free Stock Analysis Report
CROWN HLDGS INC (CCK): Free Stock Analysis
GREIF INC (GEF): Free Stock Analysis Report
SILGAN HOLDINGS (SLGN): Free Stock Analysis
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Delaware, Ohio-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 provides land management
Greif currently retains a short-term Zacks Rank #3 (Hold).
) reported second-quarter 2013 adjusted earnings of 85 cents per
share, down 4.5% from the year-ago adjusted earnings of 89 cents
per share. The results, however, beat the Zacks Consensus
Estimate by a penny.
Silgan Holdings Inc.
) posted adjusted earnings of 63 cents per share in the
second-quarter of 2013, up 15% from 55 cents earned in the
year-ago quarter. The improvement was driven by solid operating
performance by the metal and plastic container businesses.
Earnings were consistent with the company's guided range of 60
cents to 70 cents per share but missed the Zacks Consensus
Estimate of 65 cents.
Crown Holdings Inc.
) reported second-quarter 2013 adjusted earnings of 96 cents per
share, up 14% from 84 cents earned in the year-ago quarter. The
results beat the Zacks Consensus Estimate of 93 cents.
Including restructuring charges, earnings per share in the
reported quarter came in at 93 cents, up 4% from 89 cents in the