Greif Plummets on Q3 Earnings Results

Shares of Greif GEF are trading lower in the after-hours following the release of the company's Q3 earnings results. Currently, shares are lower by 8.70%, trading at $51.00; they ended the regular session higher by 1.69%, at $55.86. Greif reported Q3 EPS of $1.18 on revenues of $1.12 billion; the Street was looking for $1.33 per share on revenues of $1.11 billion. Revenues increased 21.8% year over year. The company lowered FY2011 EPS guidance to $4.15-4.30, from $4.50-4.75. Michael J. Gasser, chairman and chief executive officer, said, "Our strong growth in net sales for the quarter benefited from acquisitions during the last 12 months, higher selling prices and the positive impact of foreign currency translation. Product demand for the Rigid Industrial Packaging & Services segment in North America and Western Europe was lower than anticipated during the final three weeks of the quarter.” “There has been some recovery in demand based on August orders and shipments, on a seasonally adjusted basis, but at a lower level than earlier in the year. We are implementing actions to mitigate the financial impact of these developments.” Greif, Inc. is a producer of industrial packaging products and services with manufacturing facilities located in over 50 countries. The company offers a line of industrial packaging products, such as steel, fiber and plastic drums, rigid intermediate bulk containers, closure systems for industrial packaging products, transit protection products, water bottles and reconditioned containers, and services such as container lifecycle management, blending, filling and other packaging services, logistics and warehousing.