Industrial packaging company Greif reported third quarter 2015 net income attributable to the corporation totaling $8.6 million or $0.15 per diluted Class A share on sales of $930 million.
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This compares with net income of $13.7 million or $0.23 per diluted Class A share on sales of $1,124 million in the third quarter of 2014.
After adjusting for the effect of divestitures for both quarters and currency translation for the third quarter 20151, sales were 2.7 percent lower for the quarter when compared to the third quarter of 2014 primarily due to lower raw material costs.
Excluding the impact of special items, earnings were $0.60 per diluted Class A share for the third quarter of 2015 compared to $0.58 per diluted Class A share for the third quarter of 2014.
Net sales decreased 19.2 percent to $669 million for the third quarter of 2015 compared with $827.7 million for the third quarter of 2014. Excluding the impact of divestitures3, net sales decreased 14.4 percent to $667.9 million for the third quarter of 2015 compared with $780.7 million for the third quarter of 2014.
The decrease in net sales was primarily due to the negative impact of foreign currency translation of 10.8 percent and price decreases of 3.7 percent, due mainly to the impact of decreases in raw material costs, compared to the third quarter of 2014, respectively.
Operating profit was $29.5 million for the third quarter of 2015 compared to $43 million for the third quarter of 2014.
The decrease was primarily attributable to the negative impact of foreign currency translation, higher restructuring and non-cash asset impairment charges, and a write-down of the value of the Company’s inventory in Venezuela of $9.3 million as part of the overall remeasurement of the Venezuelan balance sheet.
Operating profit before special items and excluding the impact of divestitures was $60.2 million for the third quarter of 2015 versus $63.0 million for the third quarter of 2014. ■