Greif posts Q4 profit fall

Greif announced a 73% fall in its fourth-quarter earnings on weaker margin and restructuring charges, despite revenue growth. David B Fischer, Greif president and CEO, said the results included good net sales and operating profit before special items, as well as asset gains for the company.

“Our consolidated results were impacted by a decline in industrial packaging demand, particularly in Western Europe, and increased market pressure on both margins and volumes during the second half of the year,” he said.

The Ohio-based firm reported net income of US$20.8m, which has decreased from $76.6m in the corresponding period a year earlier. Net sales during the quarter $1.13bn, up 14% against $993.9m in the corresponding quarter in 2010.

The Rigid Industrial Packaging & Services segment reported a 17% rise in 2011 net sales to $3.01bn from $2.58bn for 2010, while net sales went up by 15% to $812.3m compared to $704.8m for the fourth quarter of 2010.

The company predicted that challenging market conditions would continue in the first half of the current fiscal year, with recovery during the second half.