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Greif, Inc. Reports Fourth Quarter and Fiscal 2012 Results


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Copyright © Thomson Reuters 2012. All rights reserved.
2012-12-11 23:23:17 -


DELAWARE, Ohio (Dec. 11, 2012) - Greif, Inc. (NYSE: GEF, GEF.B), a global leader
in industrial packaging products and services, today announced results for its
fourth quarter and fiscal year, which ended Oct. 31, 2012. The company reported:

* Fourth quarter net sales of $1,075.6 million, operating profit of $64.5
million and net income attributable to Greif, Inc. of $26.5 million, or
$0.45 per diluted Class A share. EBITDA[1] was $96.6 million. Operating
profit before special items was $78.2 million and net income attributable to
Greif, Inc. before special items was $37.1 million, or $0.63 per diluted
Class A share; and

* Fiscal 2012 net sales
of $4,269.5 million, operating profit of $284.5
million and net income attributable to Greif, Inc. of $126.1 million, or
$2.17 per diluted Class A share. EBITDA(1) was $431.7 million. Operating
profit before special items was $326.1 million and net income attributable
to Greif, Inc. before special items was $155.0 million, or $2.66 per diluted
Class A share.

(Dollars in millions, except per- Quarter ended October Year ended October
share amounts) 31, 31,
---------------------------------------------
Selected Financial Highlights 2012 2011[2] 2012(2) 2011(2)
---------------------------------------------
Net sales $1,075.6 $1,131.6 $4,269.5 $4,248.2

Operating profit 64.5 67.0 284.5 330.7

Operating profit before special
items 78.2 92.8 326.1 390.1

Net income attributable to Greif,
Inc. 26.5 20.8 126.1 177.5

Net income attributable to Greif,
Inc. before special items 37.1 39.6 155.0 220.9

Diluted Class A earnings per share 0.45 0.36 2.17 3.04

Diluted Class A earnings per share
before special items 0.63 0.65 2.66 3.77

EBITDA(1) 96.6 104.4 431.7 460.8

EBITDA(1) before special items 110.3 130.2 473.3 520.2

Special items

Restructuring charges $10.5 $19.1 $33.4 $30.5

Acquisition-related costs 3.2 5.2 8.2 24.4

Non-cash asset impairment charge - 1.5 - 4.5

Total special items 13.7 25.8 41.6 59.4

Total special items, net of tax 10.6 18.8 28.9 43.4


  Oct. 31, 2012 Oct. 31, 2011(2)
-----------------------------------
Working capital[3] $202.0 $353.1

Net working capital(3) 110.3 225.7

Long-term debt 1,175.3 1,371.4

Net debt[4] 1,185.7 1,393.8


David B. Fischer, president and chief executive officer, said, "Our consolidated
results for fiscal 2012 included two records, $304 million of free cash flow[5]
and operating profit of $84 million for our Paper Packaging segment, despite
challenging global macroeconomic conditions. Solid results for Land Management
and relatively stable conditions in North America helped to partially offset
weak performance, especially in Europe, for our Flexible Products and Rigid
Industrial Packaging segments. Acquisition integration and contingency actions
during the past year to improve our businesses, coupled with full realization of
a recently announced containerboard price increase, are expected to benefit the
company's 2013 performance."

Consolidated Results

Net sales were $1,075.6 million for the fourth quarter of 2012 compared with
$1,131.6 million for the fourth quarter of 2011. The 5 percent decrease was
primarily due to the negative impact of foreign currency translation (4 percent)
and lower selling prices (2 percent) primarily resulting from the pass-through
of lower raw material costs, partially offset by slightly increased sales
volumes (1 percent). For fiscal 2012, net sales were $4,269.5 million compared
with $4,248.2 million for fiscal 2011.

Gross profit was $194.6 million for the fourth quarter of 2012 compared with
$205.0 million for the fourth quarter of 2011, principally due to lower net
sales in the fourth quarter of 2012. Gross profit, as a percent of net sales,
was 18.1 percent for the fourth quarters of 2012 and 2011. For fiscal 2012 and
2011, gross profit was $779.7 million compared with $798.4 million and gross
profit margin was 18.3 percent and 18.8 percent, respectively.

SG&A expenses were $120.8 million for the fourth quarters of 2012 and 2011.
Higher pension and other employee benefit expenses, spending on information
technology and performance-based incentive accruals related to the achievement
of cash flow targets were offset by the impact of foreign currency translation
and lower professional fees. Acquisition-related costs of $3.2 million and
$5.2 million were also included in SG&A expenses for the fourth quarters of
2012 and 2011, respectively. SG&A expenses, as a percentage of net sales, were
11.2 percent for the fourth quarter of 2012 compared with 10.7 percent for the
fourth quarter of 2011. SG&A expenses were $469.4 million for fiscal 2012, or
11.0 percent of net sales, compared with $453.3 million, or 10.7 percent of net
sales, for fiscal 2011.

Restructuring charges were $10.5 million and $19.1 million for the fourth
quarters of 2012 and 2011, respectively, and primarily related to
rationalization of operations. Acquisition-related costs were $3.2 million and
$5.2 million for the fourth quarter of 2012 and 2011, respectively. There was a
$1.5 million non-cash asset impairment charge in the fourth quarter of 2011.

Operating profit was $64.5 million for the fourth quarter of 2012 and $67.0
million for the fourth quarter of 2011. Operating profit before special items
was $78.2 million for the fourth quarter of 2012 compared with $92.8 million for
the fourth quarter of 2011. The $14.6 million decrease was due to Rigid
Industrial Packaging & Services ($13.6 million decrease), Flexible Products &
Services ($8.5 million decrease), partially offset by higher operating profit
for Paper Packaging ($6.8 million increase) and Land Management ($0.7 million
increase). Fiscal 2012 operating profit was $284.5 million ($326.1 million
before special items) versus $330.7 million ($390.1 million before special
items) in fiscal 2011.

Interest expense, net, was $21.8 million for the fourth quarter of 2012 compared
with $24.9 million for the fourth quarter of 2011. The decrease was due to lower
debt outstanding as a result of lower working capital requirements in the fourth
quarter of 2012 compared with the fourth quarter of 2011. For fiscal 2012,
interest expense, net, was $89.9 million compared with $76.0 million the prior
year. The increase was primarily due to higher debt levels during most of the
year related to acquisitions completed during the prior year.

Income tax expense was $6.3 million and $19.8 million for the fourth quarters of
2012 and 2011, respectively. Fiscal 2012 income tax expense was $56.8 million
compared with $65.0 million for fiscal 2011. The company's annual book tax rate
increased to 30.4 percent for 2012 compared to 27.0 percent for 2011 due to a
shift in global earnings mix, which caused a higher percentage of the company's
income to be generated from countries with higher tax rates. Cash tax payments
for fiscal 2012 totaled $56.9 million.

Net income was $26.5 million, or $0.45 per diluted Class A share and $0.68 per
diluted Class B share, for the fourth quarter of 2012 and $20.8 million, or
$0.36 per diluted Class A share and $0.53 per diluted Class B share, for the
fourth quarter of 2011. Net income before special items was $37.1 million for
the fourth quarter of 2012 compared with $39.6 million for the fourth quarter of
2011. Diluted earnings per share before special items was $0.63 compared to
$0.65 per Class A share and $0.95 compared to $0.98 per Class B share for the
fourth quarters of 2012 and 2011, respectively.

EBITDA was $96.6 million and $104.4 million for the fourth quarters of 2012 and
2011, respectively. EBITDA before special items was $110.3 million for the
fourth quarter of 2012 compared with $130.2 million for the fourth quarter of
2011. The $19.9 million decrease was primarily due to lower operating profit for
the Rigid Industrial Packaging & Services and Flexible Products & Services
segments, partially offset by higher operating profit for the Paper Packaging
and Land Management segments.

Segment Results

Rigid Industrial Packaging & Services

Net sales were $764.0 million for the fourth quarter of 2012 compared with
$812.4 million for the fourth quarter of 2011. The 6 percent decrease was
primarily due to the negative impact of foreign currency translation (4
percent), lower sales volumes (1 percent) and lower selling prices (1 percent).
Economic conditions and market pressure continued to impact volumes and prices
in all geographic regions, particularly outside of North America.

Gross profit was $132.1 million and $143.8 million for the fourth quarters of
2012 and 2011, respectively, due to lower sales. Gross profit margin was 17.3
percent for the fourth quarter of 2012 compared to 17.7 percent for the fourth
quarter of 2011.

Operating profit was $38.6 million and $40.0 million for the fourth quarters of
2012 and 2011, respectively. The $1.4 million decrease was primarily due to
lower sales volumes and selling prices and the negative effect of foreign
currency translation. There were $5.8 million of restructuring charges for the
fourth quarter of 2012, primarily related to rationalization of operations,
compared with $16.1 million for the same period last year. There were $3.2
million and $3.6 million of acquisition-related costs for the fourth quarters of
2012 and 2011, respectively. The fourth quarter of 2011 included $1.5 million of
non-cash asset impairment charges.

EBITDA was $57.0 million and $63.6 million for the fourth quarters of 2012 and
2011, respectively, due to the same factors that impacted the segment's
operating profit. Depreciation, depletion and amortization expense was $26.6
million for the fourth quarter 2012 compared with $28.4 million for the same
period in 2011.

For fiscal 2012, net sales were $3,075.6 million, operating profit was $186.7
million and EBITDA was $281.1 million versus $3,014.3 million of net sales,
$219.9 million of operating profit and $300.6 million of EBITDA for fiscal 2011.

Flexible Products & Services

Net sales were $114.9 million for the fourth quarter of 2012 compared with
$134.0 million for the fourth quarter of 2011. The 14 percent decrease was
primarily due to lower selling prices (11 percent) and the negative impact of
foreign currency translation (4 percent), partially offset by slightly higher
volumes (1 percent). Volumes were lower for polywoven products due to market
conditions, especially in Europe, and restructuring activities, and volumes were
higher for multiwall bags in the United States. Selling prices for polywoven
products declined primarily due to the pass-through of lower raw material costs
and to a lesser extent product mix, while selling prices for multiwall bags
decreased due to market pressure in the United States.

Gross profit was $20.4 million and $29.3 million for the fourth quarters of
2012 and 2011, respectively. Gross profit margin decreased to 17.7 percent for
the fourth quarter of 2012 from 21.8 percent for the fourth quarter of 2011. The
change in gross profit margin was primarily due to lower revenue and product
mix.

There was an operating loss of $2.9 million for the fourth quarter of 2012 and
an operating profit of $5.7 million for the fourth quarter of 2011. The $8.6
million decrease compared with the same period last year was primarily due to
lower polywoven product volumes, higher production costs, startup costs related
to the fabric hub in Saudi Arabia and higher restructuring charges, partially
offset by lower acquisition-related costs. The higher production costs were
related to the ongoing consolidation of operations.

There were $4.7 million of restructuring charges for the fourth quarter of
2012, primarily related to rationalization of operations, compared with $3.0
million for the same period last year. There were $1.6 million of acquisition-
related costs for the fourth quarter of 2011.

EBITDA was $2.5 million and $10.4 million for the fourth quarters of 2012 and
2011, respectively. EBITDA for both periods was affected by the same factors
that impacted the segment's operating profit. Depreciation, depletion and
amortization expense was $3.3 million and $4.1 million for the fourth quarters
of 2012 and 2011, respectively.

For fiscal 2012, net sales were $453.3 million, the operating loss was $1.0
million and EBITDA was $16.9 million compared with net sales of $538.0 million,
a $16.9 million operating profit and EBITDA of $32.1 million for fiscal 2011.

Paper Packaging

Net sales were $189.6 million for the fourth quarter of 2012 compared with
$178.9 million for the fourth quarter of 2011. The 6 percent increase was due to
higher volumes (7 percent), partially offset by lower selling prices (1
percent). The company began to implement a $50 per ton containerboard increase
during the fourth quarter of 2012; full realization of this increase is expected
during the first quarter of fiscal 2013. On average, fourth quarter of 2012
prices declined year over year due to product and customer mix.

Gross profit was $39.0 million and $28.6 million for the fourth quarters of
2012 and 2011, respectively. Gross profit margin increased to 20.6 percent for
the fourth quarter of 2012 from 16.0 percent for the fourth quarter of 2011.
This increase in gross profit margin was primarily due to lower raw material
costs.

Operating profit was $25.2 million and $18.4 million for the fourth quarters of
2012 and 2011, respectively. The $6.8 million increase was primarily due to
higher volumes and gross profit margin improvement principally due to lower raw
material costs.

EBITDA increased to $32.7 million for the fourth quarter of 2012 compared with
$26.6 million in the fourth quarter of 2011 for the same reasons that
contributed to the segment's operating profit. Depreciation, depletion and
amortization expense was $8.2 million for the fourth quarters of 2012 and 2011.

For fiscal 2012, net sales were $713.8 million, operating profit was $83.5
million, and EBITDA was $115.1 million versus $675.0 million of net sales, $74.9
million of operating profit and EBITDA of $106.1 million for fiscal 2011.

Land Management

Net sales were $7.1 million for the fourth quarter of 2012 compared with $6.3
million for the fourth quarter of 2011 due to the impact of favorable weather
conditions and customer demand.

Operating profit was $3.6 million for the fourth quarter of 2012 compared to
$2.9 million for the fourth quarter of 2011. This increase was due to special
use property disposals of $1.0 million for the fourth quarter of 2012 compared
with a de minimis amount the prior year.

EBITDA was $4.4 million and $3.8 million for the fourth quarter of 2012 and
2011, respectively. This increase was due to the same factors that impacted the
segment's operating profit. Depreciation, depletion and amortization expense was
$0.8 million and $0.9 million for the fourth quarters of 2012 and 2011,
respectively.

For fiscal 2012, net sales were $26.8 million, operating profit was $15.3
million and EBITDA was $18.6 million compared with $20.9 million of net sales,
operating profit of $19.0 million and EBITDA of $22.0 million for fiscal 2011.

Other Financial Information

During fiscal 2012, the company's net debt decreased $208.1 million to $1,185.7
million at Oct. 31, 2012, primarily due to strong cash flow and lower working
capital requirements. The company's long-term debt declined 14 percent to
$1,175.3 million at Oct. 31, 2012, from $1,371.4 million at Oct. 31, 2011.

Cash flows provided by operating activities were $473.5 million for 2012
compared with $172.3 million for the prior year and $139.2 million for the
fourth quarter of 2012 versus $149.6 million for the fourth quarter of 2011.

There were no material acquisitions in fiscal 2012 compared with eight
acquisitions for $344.9 million during fiscal 2011.

Capital expenditures were $166.0 million, excluding timberland purchases of $3.7
million, for fiscal 2012 compared with capital expenditures of $162.4 million,
excluding timberland purchases of $3.5 million, for fiscal 2011. Depreciation,
depletion and amortization expense was $154.7 million and $144.2 million for
fiscal 2012 and 2011, respectively.

On Dec. 4, 2012, the Board of Directors declared quarterly cash dividends of
$0.42 per share of Class A Common Stock and $0.62 per share of Class B Common
Stock. These dividends are payable on Dec. 26, 2012, to stockholders of record
at close of business on Dec. 14, 2012.

Company Outlook

Factors impacting the global economy during 2012 are expected to continue into
fiscal 2013. These include challenging market conditions driven by macroeconomic
and political uncertainties. For fiscal 2013, we anticipate a slight increase in
volumes compared with fiscal 2012 and margin improvement based on stable raw
material costs, coupled with improved operating performance and full realization
of the recent containerboard price increase.

We anticipate that EBITDA will be between $450 million and $500 million for
fiscal 2013. Additionally, net interest expense is anticipated to be below
fiscal 2012, reflecting lower debt levels. Capital expenditures are expected to
be between $140 million and $150 million for fiscal 2013. The book tax rate is
expected to be between 31 percent and 34 percent for fiscal 2013.

Conference Call

The company will host a conference call to discuss the fourth quarter and fiscal
2012 results on Dec. 12, 2012, at 10 a.m. Eastern Time (ET). To participate,
domestic callers should call 877-485-3107 and ask for the Greif conference call.
The number for international callers is +1 201-689-8427. Phone lines will open
at 9:50 a.m. ET. The conference call will also be available through a live
webcast, including slides, which can be accessed at www.greif.com in the
Investor Center. A replay of the conference call will be available on the
company's website approximately one hour following the call.

About Greif

Greif is a world leader in industrial packaging products and services. The
company produces steel, plastic, fibre, flexible, corrugated and multiwall
containers and containerboard, and provides reconditioning, blending, filling
and packaging services for a wide range of industries. Greif also manages timber
properties in North America. The company is strategically positioned in more
than 55 countries to serve global as well as regional customers. Additional
information is on the company's website at www.greif.com.

Forward-Looking Statements

All statements, other than statements of historical facts, included in this news
release, including without limitation statements regarding our future financial
position, business strategy, budgets, projected costs, goals and plans and
objectives of management for future operations, are forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking
statements generally can be identified by the use of forward-looking terminology
such as "may," "will," "expect," "intend,"
"estimate," "anticipate," "project,"
"believe," "continue," "on track" or "target" or the
negative thereof or
variations thereon or similar terminology. All forward-looking statements made
in this news release are based on information currently available to management.
Although we believe that the expectations reflected in forward-looking
statements have a reasonable basis, we can give no assurance that these
expectations will prove to be correct. Forward-looking statements are subject to
risks and uncertainties that could cause actual events or results to differ
materially from those expressed in or implied by the statements. Such risks and
uncertainties that might cause a difference include, but are not limited to, the
following: (i) the current and future challenging global economy may adversely
affect our business; (ii) historically, our business has been sensitive to
changes in general economic or business conditions; (iii) our operations are
subject to currency exchange and political risks that could adversely affect our
results of operations; (iv) the continuing consolidation of our customer base
and suppliers may intensify pricing pressure; (v) we operate in highly
competitive industries; (vi) our business is sensitive to changes in industry
demands; (vii) raw material and energy price fluctuations and shortages may
adversely impact our manufacturing operations and costs; (viii) we may encounter
difficulties arising from acquisitions; (ix) we may incur additional
restructuring costs and there is no guarantee that our efforts to reduce costs
will be successful; (x) tax legislation initiatives or challenges to our tax
positions may adversely impact our financial results or condition; (xi) several
operations are conducted by joint ventures that we cannot operate solely for our
benefit; (xii) our ability to attract, develop and retain talented employees,
managers and executives is critical to our success; (xiii) our business may be
adversely impacted by work stoppages and other labor relations matters; (xiv) we
may be subject to losses that might not be covered in whole or in part by
existing insurance reserves or insurance coverage; (xv) our business depends on
the uninterrupted operations of our facilities, systems and business functions,
including our information technology and other business systems; (xvi)
legislation/regulation related to climate change and environmental and health
and safety matters and product liability claims could negatively impact our
operations and financial performance; (xvii) changing climate conditions may
adversely affect our operations and financial performance; (xviii) we may incur
fines or penalties, damage to reputation or other adverse consequences if our
employees, agents or business partners violate, or are alleged to have violated,
anti-bribery, competition or other laws; (xix) the frequency and volume of our
timber and timberland sales will impact our financial performance; and (xx)
potential accounting restatements. Changes in business results may impact our
book tax rates. The risks described above are not all-inclusive, and given these
and other possible risks and uncertainties, investors should not place undue
reliance on forward-looking statements as a prediction of actual results. For a
detailed discussion of the most significant risks and uncertainties that could
cause our actual results to differ materially from those projected, see "Risk
Factors" in Part I, Item 1A of our Form 10-K for the year ended Oct. 31, 2012
and our other filings with the Securities and Exchange Commission. All forward-
looking statements made in this news release are expressly qualified in their
entirety by reference to such risk factors. Except to the limited extent
required by applicable law, we undertake no obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise.



GREIF, INC. AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED
(Dollars and shares in millions, except per share amounts)

  Quarter ended Year ended

  October 31, October 31,
------------------------------------
  2012 2011[6] 2012(6) 2011(6)
------------------------------------


Net sales $1,075.6 $1,131.6 $4,269.5 $4,248.2

Cost of products sold 881.0 926.6 3,489.8 3,449.8
------------------------------------
  Gross profit 194.6 205.0 779.7 798.4



Selling, general and administrative expenses 120.8 120.8 469.4 453.3

Restructuring charges 10.5 19.1 33.4 30.5

(Gain) on disposal of properties, plants and
equipment, net (1.2) (1.9) (7.6) (16.1)
------------------------------------
  Operating profit 64.5 67.0 284.5 330.7



Interest expense, net 21.8 24.9 89.9 76.0

Other expense, net 6.8 4.2 7.5 14.1
------------------------------------
  Income before income tax expense and
 equity earnings of

  unconsolidated affiliates, net 35.9 37.9 187.1 240.6



Income tax expense 6.3 19.8 56.8 65.0

Equity earnings of unconsolidated
affiliates, net of tax - 2.8 1.3 4.8
------------------------------------
  Net income 29.6 20.9 131.6 180.4

Net (income) attributable to noncontrolling
interests (3.1) (0.1) (5.5) (2.9)
------------------------------------
  Net income attributable to Greif, Inc. $26.5 $20.8 $126.1 $177.5
------------------------------------


Basic earnings per share attributable to Greif, Inc. common shareholders:

Class A Common Stock $0.45 $0.36 $2.17 $3.05

Class B Common Stock $0.68 $0.53 $3.24 $4.56



Diluted earnings per share attributable to Greif, Inc. common shareholders:

Class A Common Stock $0.45 $0.36 $2.17 $3.04

Class B Common Stock $0.68 $0.53 $3.24 $4.56



Shares used to calculate basic earnings per share attributable to Greif, Inc.
common shareholders:

Class A Common Stock 25.3 25.0 25.2 24.9

Class B Common Stock 22.1 22.2 22.1 22.3



Shares used to calculate diluted earnings per share attributable to Greif, Inc.
common shareholders:

Class A Common Stock 25.4 25.1 25.2 25.0

Class B Common Stock 22.1 22.2 22.1 22.3




GREIF, INC. AND SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED BALANCE SHEETS
UNAUDITED
(Dollars in millions)

  October 31, 2012     October 31, 2011[7]
-----------------------------------------
ASSETS



CURRENT ASSETS

Cash and cash equivalents $91.7 $127.4

Trade accounts receivable 453.9 561.4

Inventories 374.3 429.0

Current portion related party notes
receivable 2.5 1.7

Other current assets 141.6 165.6
-----------------------------------------
  1,064.0 1,285.1
-----------------------------------------


LONG-TERM ASSETS

Goodwill 976.1 1,002.6

Intangible assets 198.6 228.8

Related party note receivable 15.7 18.3

Assets held by special purpose entities 50.9 50.9

Other long-term assets 131.9 168.4
-----------------------------------------
  1,373.2 1,469.0
-----------------------------------------


PROPERTIES, PLANTS AND EQUIPMENT 1,419.7 1,434.7
-----------------------------------------


  $3,856.9 $4,188.8
-----------------------------------------


LIABILITIES AND SHAREHOLDERS' EQUITY



CURRENT LIABILITIES

Accounts payable $466.1 $493.3

Short-term borrowings 77.1 137.3

Current portion of long-term debt 25.0 12.5

Other current liabilities 293.8 288.9
-----------------------------------------
  862.0 932.0
-----------------------------------------


LONG-TERM LIABILITIES

Long-term debt 1,175.3 1,371.4

Liabilities held by special purpose
entities 43.3 43.3

Other long-term liabilities 455.9 500.0
-----------------------------------------
  1,674.5 1,914.7
-----------------------------------------


SHAREHOLDERS' EQUITY 1,320.4 1,342.1
-----------------------------------------


  $3,856.9 $4,188.8
-----------------------------------------



GREIF, INC. AND SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
UNAUDITED
(Dollars in millions)

Quarter ended Year ended

  October 31, October 31,
--------------------------------
  2012 2011[8] 2012(8) 2011(8)
--------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:

Net income $29.6 $20.9 $131.6 $180.4

Depreciation, depletion and amortization 38.9 41.6 154.7 144.2

Other non-cash adjustments to net income 42.0 20.5 24.3 (1.0)

Increase (decrease) in cash from changes in
certain

  assets and liabilities and other 28.7 66.6 162.9 (151.3)
--------------------------------
  Net cash provided by operating activities 139.2 149.6 473.5 172.3
--------------------------------


CASH FLOWS FROM INVESTING ACTIVITIES:

Acquisitions of companies, net of cash acquired - (159.2) - (344.9)

Cash paid for deferred purchase price - - (14.3) -

Purchases of properties, plants, equipment and
timber properties (40.7) (44.6) (169.7) (165.8)

Issuance of notes receivable to related party 0.9 1.2 2.0 (20.0)

Other 4.7 13.1 13.9 30.3
--------------------------------
  Net cash used in investing activities (35.1) (189.5) (168.1) (500.4)
--------------------------------


CASH FLOWS FROM FINANCING ACTIVITIES:

(Payments) proceeds on debt, net (82.9) 105.4 (241.9) 462.9

Dividends paid (24.5) (24.4) (97.8) (97.8)

Other 0.8 (15.8) 1.7 (17.0)
--------------------------------
  Net cash (used in) provided by financing
activities (106.6) 65.2 (338.0) 348.1
--------------------------------


EFFECTS OF EXCHANGE RATES ON CASH 2.5 (7.0) (3.1) 0.4



Net increase (decrease) in cash and cash
equivalents - 18.3 (35.7) 20.4

Cash and cash equivalents at beginning of the
period 91.7 109.1 127.4 107.0
--------------------------------
Cash and cash equivalents at end of the period $91.7 $127.4 $91.7 $127.4
--------------------------------



GREIF, INC. AND SUBSIDIARY COMPANIES
GAAP TO NON-GAAP RECONCILIATION
CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED
(Dollars in millions, except per share amounts)

Quarter ended October Quarter ended October
  31, 2012 31, 2011[9]
----------------------------------------------------------
Diluted per share Diluted per share
    amounts   amounts
----------------------- ----------------------
    Class A Class B   Class A Class B
----------------------- ----------------------


Operating profit $64.5     $67.0

  Restructuring
charges 10.5     19.1

  Acquisition-related
costs 3.2     5.2

  Non-cash asset
impairment charges -     1.5
-------- --------
Operating profit $78.2 $92.8
before special items
-------- --------


Net income
attributable to Greif,
Inc. $26.5 $0.45 $0.68 $20.8 $0.36 $0.53

  Restructuring
charges, net of tax 8.1 0.14 0.21 13.9 0.23 0.34

  Acquisition-related
costs, net of tax 2.5 0.04 0.06 3.8 0.05 0.09

  Non-cash asset
impairment charges,
net of tax - - - 1.1 0.01 0.02
----------------------------------------------------------
Net income
attributable to Greif,
Inc. before

special items $37.1 $0.63 $0.95 $39.6 $0.65 $0.98
----------------------------------------------------------


Year ended October Year ended October
  31, 2012(9) 31, 2011(9)
----------------------------------------------------------
Diluted per share Diluted per share
    amounts   amounts
----------------------- ----------------------
    Class A Class B   Class A Class B
----------------------- ----------------------


Operating profit $284.5     $330.7

  Restructuring
charges 33.4     30.5

  Acquisition-related
costs 8.2     24.4

  Non-cash asset
impairment charges -     4.5
-------- --------
Operating profit $326.1 $390.1
before special items
-------- --------


Net income
attributable to Greif,
Inc. $126.1 $2.17 $3.24 $177.5 $3.04 $4.56

  Restructuring
charges, net of tax 23.2 0.39 0.59 22.3 0.37 0.57

  Acquisition-related
costs, net of tax 5.7 0.10 0.15 17.8 0.30 0.46

  Non-cash asset
impairment charges,
net of tax - - - 3.3 0.06 0.08
----------------------------------------------------------
Net income
attributable to Greif,
Inc. before

special items $155.0 $2.66 $3.98 $220.9 $3.77 $5.67
----------------------------------------------------------


GREIF, INC. AND SUBSIDIARY COMPANIES
GAAP TO NON-GAAP RECONCILIATION
SEGMENT OPERATING PROFIT AND OTHER DATA
UNAUDITED
(Dollars in millions)

Quarter ended Year ended

  October 31, October 31,
------------------------------------
  2012 2011[10] 2012(10) 2011(10)
------------------------------------


Net sales:

  Rigid Industrial Packaging & Services $764.0 $812.4 $3,075.6 $3,014.3

  Flexible Products & Services 114.9 134.0 453.3 538.0

  Paper Packaging 189.6 178.9 713.8 675.0

  Land Management 7.1 6.3 26.8 20.9
------------------------------------
     Total net sales $1,075.6 $1,131.6 $4,269.5 $4,248.2
------------------------------------


Operating profit (loss):

  Rigid Industrial Packaging & Services $38.6 $40.0 $186.7 $219.9

  Flexible Products & Services (2.9) 5.7 (1.0) 16.9

  Paper Packaging 25.2 18.4 83.5 74.9

  Land Management 3.6 2.9 15.3 19.0
------------------------------------
     Total operating profit 64.5 67.0 284.5 330.7
------------------------------------
Restructuring charges:

  Rigid Industrial Packaging & Services 5.8 16.1 22.0 24.1

  Flexible Products & Services 4.7 3.0 11.4 6.9

  Paper Packaging - - - (0.5)
------------------------------------
     Total restructuring charges 10.5 19.1 33.4 30.5
------------------------------------
Acquisition-related costs:

  Rigid Industrial Packaging & Services 3.2 3.6 7.3 9.9

  Flexible Products & Services - 1.6 0.9 14.5
------------------------------------
     Total acquisition-related costs 3.2 5.2 8.2 24.4
------------------------------------
Non-cash asset impairment charges:

  Rigid Industrial Packaging & Services - 1.5 - 1.5

  Flexible Products & Services - - - 3.0
------------------------------------
     Total non-cash asset impairment charges - 1.5 - 4.5
------------------------------------
Operating profit before special items:

  Rigid Industrial Packaging & Services 47.6 61.2 216.0 255.4

  Flexible Products & Services 1.8 10.3 11.3 41.3

  Paper Packaging 25.2 18.4 83.5 74.40

  Land Management 3.6 2.9 15.3 19.0
------------------------------------
     Total operating profit before special $78.2 $92.8 $326.1 $390.1
items
------------------------------------


GREIF, INC. AND SUBSIDIARY COMPANIES
GAAP TO NON-GAAP RECONCILIATION
WORKING CAPITAL
UNAUDITED
(Dollars in millions)

  October 31, 2012     October 31, 2011[11]
------------------------------------------


Current assets $1,064.0 $1,285.1

Less: current liabilities 862.0 932.0
------------------------------------------
   Working capital 202.0 353.1

Less: cash and cash equivalents 91.7 127.4
------------------------------------------
   Net working capital $110.3 $225.7
------------------------------------------


Long-term debt $1,175.3 $1,371.4

Plus: current portion of long-term 25.0 12.5
debt

Plus: short-term borrowings 77.1 137.3

Less: cash and cash equivalents 91.7 127.4
------------------------------------------
  Net debt $1,185.7 $1,393.8
------------------------------------------


GREIF, INC. AND SUBSIDIARY COMPANIES
GAAP TO NON-GAAP RECONCILIATION
CONSOLIDATED EBITDA[12]
UNAUDITED
(Dollars in millions)

  Quarter ended Year ended

  October 31, October 31,
----------------------------------
  2012 2011[13] 2012(13) 2011(13)
----------------------------------


Net income $29.6 $20.9 $131.6 $180.4

  Plus: interest expense, net 21.8 24.9 89.9 76.0

  Plus: income tax expense 6.3 19.8 56.8 65.0

  Plus: depreciation, depletion and 38.9 41.6 154.7 144.2
amortization expense

  Less: equity earnings of unconsolidated - 2.8 1.3 4.8
affiliates, net of tax
----------------------------------
EBITDA 96.6 104.4 431.7 460.8
----------------------------------
  Restructuring charges 10.5 19.1 33.4 30.5

  Acquisition-related costs 3.2 5.2 8.2 24.4

  Non-cash asset impairment charges - 1.5 - 4.5
----------------------------------
EBITDA before special items $110.3 $130.2 $473.3 $520.2
----------------------------------




Net income $29.6 $20.9 $131.6 $180.4

  Plus: interest expense, net 21.8 24.9 89.9 76.0

  Plus: income tax expense 6.3 19.8 56.8 65.0

  Plus: other expense, net 6.8 4.2 7.5 14.1

  Less: equity earnings of unconsolidated - 2.8 1.3 4.8
affiliates, net of tax
----------------------------------
Operating profit 64.5 67.0 284.5 330.7

  Plus: other expense, net 6.8 4.2 7.5 14.1

  Plus: depreciation, depletion and
amortization expense 38.9 41.6 154.7 144.2
----------------------------------
EBITDA 96.6 104.4 431.7 460.8

  Restructuring charges 10.5 19.1 33.4 30.5

  Acquisition-related costs 3.2 5.2 8.2 24.4

  Non-cash asset impairment charges - 1.5 - 4.5
----------------------------------
EBITDA before special items $110.3 $130.2 $473.3 $520.2
----------------------------------


GREIF, INC. AND SUBSIDIARY COMPANIES
GAAP TO NON-GAAP RECONCILIATION
SEGMENT EBITDA[14]
UNAUDITED
(Dollars in millions)

  Quarter ended Year ended

  October 31, October 31,
----------------------------------
  2012 2011[15] 2012(15) 2011(15)
----------------------------------
Rigid Industrial Packaging & Services

Operating profit $38.6 $40.0 $186.7 $219.9

  Less: other expense, net 8.2 4.8 10.7 12.3

  Plus: depreciation and amortization expense 26.6 28.4 105.1 93.0
----------------------------------
EBITDA 57.0 63.6 281.1 300.6

  Restructuring charges 5.8 16.1 22.0 24.1

  Acquisition-related costs 3.2 3.6 7.3 9.9

  Non-cash asset impairment charges - 1.5 - 1.5
----------------------------------
EBITDA before special items $66.0 $84.8 $310.4 $336.1
----------------------------------


Flexible Products & Services

Operating profit (loss) $(2.9) $5.7 $(1.0) $16.9

  Less: other (income) expense, net (2.1) (0.6) (3.2) 1.4

  Plus: depreciation and amortization expense 3.3 4.1 14.7 16.6
----------------------------------
EBITDA 2.5 10.4 16.9 32.1

  Restructuring charges 4.7 3.0 11.4 6.9

  Acquisition-related costs - 1.6 0.9 14.5

  Non-cash asset impairment charges - - - 3.0
----------------------------------
EBITDA before special items $7.2 $15.0 $29.2 $56.5
----------------------------------


Paper Packaging

Operating profit $25.2 $18.4 $83.5 $74.9

  Less: other expense, net 0.7 - - 0.4

  Plus: depreciation and amortization expense 8.2 8.2 31.6 31.6
----------------------------------
EBITDA 32.7 26.6 115.1 106.1

  Restructuring charges - - - (0.5)
----------------------------------
EBITDA before special items $32.7 $26.6 $115.1 $105.6
----------------------------------


Land Management

Operating profit $3.6 $2.9 $15.3 $19.0

  Plus: depreciation, depletion and
amortization expense 0.8 0.9 3.3 3.0
----------------------------------
EBITDA and EBITDA before special items $4.4 $3.8 $18.6 $22.0
----------------------------------


Consolidated EBITDA $96.6 $104.4 $431.7 $460.8
----------------------------------


Consolidated EBITDA before special items $110.3 $130.2 $473.3 $520.2
----------------------------------


GREIF, INC. AND SUBSIDIARY COMPANIES
GAAP TO NON-GAAP RECONCILIATION
FREE CASH FLOWS
UNAUDITED
(Dollars in millions)

  Quarter ended Year ended

  October 31, October 31,
----------------------------------
  2012 2011[16] 2012(16) 2011(16)
----------------------------------


Cash provided by operating activities $139.2 $149.6 $473.5 $172.3

Less:  Purchases of properties, plants,
equipment and timber properties (40.7) (44.6) (169.7) (165.8)
----------------------------------
Free Cash Flows $98.5 $105.0 $303.8 $6.5
----------------------------------


GREIF, INC. AND SUBSIDIARY COMPANIES
GEOGRAPHIC DATA
UNAUDITED
(Dollars in millions)

  Quarter ended Year ended

  October 31, October 31,
--------------------------------------------
  2012 2011[17] 2012(17) 2011(17)
--------------------------------------------


Net sales:

North America $514.9 $506.7 $1,983.9 $1,932.8

Europe, Middle East and Africa 398.8 448.6 1,634.9 1,645.6

Asia Pacific and Latin America 161.9 176.3 650.7 669.8
--------------------------------------------
    Total net sales $1,075.6 $1,131.6 $4,269.5 $4,248.2
--------------------------------------------


Operating profit (loss):

North America $45.3 $58.8 $185.4 $203.2

Europe, Middle East and Africa 21.1 6.4 101.2 110.5

Asia Pacific and Latin America (1.9) 1.8 (2.1) 17.0
--------------------------------------------
      Total operating profit $64.5 $67.0 $284.5 $330.7
--------------------------------------------


EBITDA[18]:

North America $66.1 $80.2 $242.9 $227.9

Europe, Middle East and Africa 28.0 18.8 172.4 197.8

Asia Pacific and Latin America 2.5 5.4 16.4 35.1
--------------------------------------------
  $96.6 $104.4 $431.7 $460.8
--------------------------------------------

###
Contact:
Media:
Deb Strohmaier, APR
Vice President, Communications
+1 740-549-6074
cell: +1 740-816-0692

Analysts:
Robert A. Lentz
Robert A. Lentz Associates
+1 614-876-2000

[1] EBITDA is defined as net income plus interest expense, net, plus income tax
expense less equity earnings of unconsolidated subsidiaries, net of tax plus
depreciation, depletion and amortization.
[2] In the fourth quarter 2012, the company completed its review of accounting
errors that occurred over a number of years with respect to the Latin America
region of the Rigid Industrial & Packaging segment. In addition, the company
corrected several prior period errors related to deferred tax assets, tax
reserves and withholding taxes. The company also corrected prior period errors
related to the financing structures of two of the company's joint ventures
formed in 2010 and 2011. The impact of these errors was not material to the
company in any prior year. However, the cumulative effect of the correction of
these prior period errors would have been material to the current year's
consolidated financial statement of operations; therefore, these errors were
corrected by restating the relevant prior periods. As a result of correcting
these errors for purposes of the consolidated statements of operations, net
income attributable to Greif, Inc. for the following periods presented in this
earnings release changed as follows: $1.8 million decrease for fiscal 2012 to
the prior three quarters and $1.5 million increase for fiscal 2011.
[3] Working capital represents current assets less current liabilities. Net
working capital represents working capital less cash and cash equivalents.
[4] Net debt represents long-term debt plus the current portion of long-term
debt plus short-term borrowings less cash and cash equivalents.

Note:   A reconciliation of the differences between all non-GAAP financial
measures used in this release with the most directly comparable GAAP financial
measures is included in the financial statements that are a part of this
release.
[5] Free cash flow is defined as cash provided by operating activities less
capital expenditures and timberland purchases.

Note:   A reconciliation of the differences between all non-GAAP financial
measures used in this release with the most directly comparable GAAP financial
measures is included in the financial statements that are a part of this
release.
[6] In the fourth quarter 2012, the company completed its review of accounting
errors that occurred over a number of years with respect to the Latin America
region of the Rigid Industrial & Packaging segment. In addition, the company
corrected several prior period errors related to deferred tax assets, tax
reserves and withholding taxes. The company also corrected prior period errors
related to the financing structures of two of the company's joint ventures
formed in 2010 and 2011. The impact of these errors was not material to the
company in any prior year. However, the cumulative effect of the correction of
these prior period errors would have been material to the current year's
consolidated financial statement of operations; therefore, these errors were
corrected by restating the relevant prior periods. As a result of correcting
these errors for purposes of the consolidated statements of operations, net
income attributable to Greif, Inc. for the following periods presented in this
earnings release changed as follows: $1.8 million decrease for fiscal 2012 to
the prior three quarters and $1.5 million increase for fiscal 2011.
[7] In the fourth quarter 2012, the company completed its review of accounting
errors that occurred over a number of years with respect to the Latin America
region of the Rigid Industrial & Packaging segment. In addition, the company
corrected several prior period errors related to deferred tax assets, tax
reserves and withholding taxes. The company also corrected prior period errors
related to the financing structures of two of the company's joint ventures
formed in 2010 and 2011. The impact of these errors was not material to the
company in any prior year. However, the cumulative effect of the correction of
these prior period errors would have been material to the current year's
consolidated financial statement of operations; therefore, these errors were
corrected by restating the relevant prior periods. As a result of correcting
these errors for purposes of the consolidated statements of operations, net
income attributable to Greif, Inc. for the following periods presented in this
earnings release changed as follows: $1.8 million decrease for fiscal 2012 to
the prior three quarters and $1.5 million increase for fiscal 2011.
[8] In the fourth quarter 2012, the company completed its review of accounting
errors that occurred over a number of years with respect to the Latin America
region of the Rigid Industrial & Packaging segment. In addition, the company
corrected several prior period errors related to deferred tax assets, tax
reserves and withholding taxes. The company also corrected prior period errors
related to the financing structures of two of the company's joint ventures
formed in 2010 and 2011. The impact of these errors was not material to the
company in any prior year. However, the cumulative effect of the correction of
these prior period errors would have been material to the current year's
consolidated financial statement of operations; therefore, these errors were
corrected by restating the relevant prior periods. As a result of correcting
these errors for purposes of the consolidated statements of operations, net
income attributable to Greif, Inc. for the following periods presented in this
earnings release changed as follows: $1.8 million decrease for fiscal 2012 to
the prior three quarters and $1.5 million increase for fiscal 2011.
[9] In the fourth quarter 2012, the company completed its review of accounting
errors that occurred over a number of years with respect to the Latin America
region of the Rigid Industrial & Packaging segment. In addition, the company
corrected several prior period errors related to deferred tax assets, tax
reserves and withholding taxes. The company also corrected prior period errors
related to the financing structures of two of the company's joint ventures
formed in 2010 and 2011. The impact of these errors was not material to the
company in any prior year. However, the cumulative effect of the correction of
these prior period errors would have been material to the current year's
consolidated financial statement of operations; therefore, these errors were
corrected by restating the relevant prior periods. As a result of correcting
these errors for purposes of the consolidated statements of operations, net
income attributable to Greif, Inc. for the following periods presented in this
earnings release changed as follows: $1.8 million decrease for fiscal 2012 to
the prior three quarters and $1.5 million increase for fiscal 2011.
[10] In the fourth quarter 2012, the company completed its review of accounting
errors that occurred over a number of years with respect to the Latin America
region of the Rigid Industrial & Packaging segment. In addition, the company
corrected several prior period errors related to deferred tax assets, tax
reserves and withholding taxes. The company also corrected prior period errors
related to the financing structures of two of the company's joint ventures
formed in 2010 and 2011. The impact of these errors was not material to the
company in any prior year. However, the cumulative effect of the correction of
these prior period errors would have been material to the current year's
consolidated financial statement of operations; therefore, these errors were
corrected by restating the relevant prior periods. As a result of correcting
these errors for purposes of the consolidated statements of operations, net
income attributable to Greif, Inc. for the following periods presented in this
earnings release changed as follows: $1.8 million decrease for fiscal 2012 to
the prior three quarters and $1.5 million increase for fiscal 2011.
[11] In the fourth quarter 2012, the company completed its review of accounting
errors that occurred over a number of years with respect to the Latin America
region of the Rigid Industrial & Packaging segment. In addition, the company
corrected several prior period errors related to deferred tax assets, tax
reserves and withholding taxes. The company also corrected prior period errors
related to the financing structures of two of the company's joint ventures
formed in 2010 and 2011. The impact of these errors was not material to the
company in any prior year. However, the cumulative effect of the correction of
these prior period errors would have been material to the current year's
consolidated financial statement of operations; therefore, these errors were
corrected by restating the relevant prior periods. As a result of correcting
these errors for purposes of the consolidated statements of operations, net
income attributable to Greif, Inc. for the following periods presented in this
earnings release changed as follows: $1.8 million decrease for fiscal 2012 to
the prior three quarters and $1.5 million increase for fiscal 2011.
[12] EBITDA is defined as net income, plus interest expense, net, plus income
tax expense, less equity earnings of unconsolidated affiliates, net of tax, plus
depreciation, depletion and amortization. However, because the company does not
calculate net income by segment, this table calculates EBITDA by segment with
reference to operating profit by segment, which as demonstrated in the preceding
table is another method to achieve the same result.
[13] In the fourth quarter 2012, the company completed its review of accounting
errors that occurred over a number of years with respect to the Latin America
region of the Rigid Industrial & Packaging segment. In addition, the company
corrected several prior period errors related to deferred tax assets, tax
reserves and withholding taxes. The company also corrected prior period errors
related to the financing structures of two of the company's joint ventures
formed in 2010 and 2011. The impact of these errors was not material to the
company in any prior year. However, the cumulative effect of the correction of
these prior period errors would have been material to the current year's
consolidated financial statement of operations; therefore, these errors were
corrected by restating the relevant prior periods. As a result of correcting
these errors for purposes of the consolidated statements of operations, net
income attributable to Greif, Inc. for the following periods presented in this
earnings release changed as follows: $1.8 million decrease for fiscal 2012 to
the prior three quarters and $1.5 million increase for fiscal 2011.
[14] EBITDA is defined as net income, plus interest expense, net, plus income
tax expense, less equity earnings of unconsolidated affiliates, net of tax, plus
depreciation, depletion and amortization. However, because the company does not
calculate net income by segment, this table calculates EBITDA by segment with
reference to operating profit by segment, which as demonstrated in the preceding
table is another method to achieve the same result.
[15] In the fourth quarter 2012, the company completed its review of accounting
errors that occurred over a number of years with resp


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