Greif reports Q3 2019 sales increase

Greif Inc., Delaware, Ohio, an industrial packaging products and services company, has announced its third quarter 2019 results. Net sales increased by $240 million to about $1. 25 million, and gross profit increased by $62.3 million to $279.4 million.

"Greif produced solid third quarter 2019 results despite ongoing market softness and a weakening industrial economy," says Pete Watson, Greif's president and chief executive officer.

Watson says third quarter adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose by about 39 percent compared with the prior year quarter. 

In the Paper Packaging & Services segment, net sales increased by $294.4 million to $530 million. The increase in sales was primarily due to $320.4 million of contribution from the acquired Caraustar operations, partially offset by lower published containerboard prices and decreased volumes across the company’s operations.

Gross profit increased by $75.2 million to $134.7 million. Greif reports the increase in gross profit was primarily due to $81.6 million of contribution from the acquired Caraustar operations, partially offset by the same factors that impacted net sales.

In the Rigid Industrial Packaging & Services segment, net sales decreased by $45.5 million to $642.1 million due to “continued softness” in Europe and gross profit decreased by $12.3 million to $126.5 million.

"Our newly acquired Caraustar operations performed better than our original assumptions; however; we faced weaker market demand in our containerboard operations and in certain segments of our rigid industrial packaging business,” Watson says. “In light of external headwinds, we are implementing additional optimization measures in parts of our portfolio to lower costs and better navigate challenging market conditions. We remain laser focused on those areas within our control to more profitability serve our customers. I remain highly confident in our long-term plan to drive more sustainable free cash flow, deliver our balance sheet and grow our profits."