Greif posts steep decline in 3Q profit

Greif posts decline in 3Q profit, but beats Wall Street estimates

• On 6:17 pm EDT, Wednesday September 2, 2009

DELAWARE, Ohio (AP) -- Industrial packaging products manufacturer Greif Inc. said Wednesday its third-quarter profit fell 39 percent, though its adjusted results that excluded restructuring charges beat Wall Street expectations.

Net income of $39.7 million, or 68 cents per share, compared with $64.6 million, or $1.11 per share in the year-ago period. Excluding restructuring charges of $11.9 million, net income was $51.6 million, or 88 cents per share, Greif said.

Analysts surveyed by Thomson Reuters expected the Delaware, Ohio, company to earn 86 cents per share on revenue of $757.2 million.

Revenue for the quarter ended July 31 was 717.6 million, down 31 percent from $1.03 billion in the same period in 2008.

Michael J. Gasser, chairman and CEO, said the results benefited from "significant permanent cost-reduction actions" and gradually improving volumes, particularly in the final month of the quarter.

Year-to-date restructuring and other cost-reduction included shutting 16 facilities and eliminating more than 2,000 jobs, Greif said. The company said it expects restructuring charges of about $78 million in fiscal 2009.

Greif lowered the top end of its fiscal 2009 earnings guidance, to between $3.25 per share and $3.50 per Class A share, down from a previous $3.25 to $3.75 per Class A share.

Analysts expect earnings of $3.30 per share, according to a survey by Thomson Reuters.

Shares fell 38 cents, to close at $48.20.

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