Greif, Inc. Updates Forecast for Second Quarter of Fiscal 2021
Greif, Inc., a global leader in industrial packaging products and services, today announced that it has revised its outlook for the second quarter of fiscal 2021. Diluted Class A second quarter earnings per share for Fiscal 2021 before adjustments is now expected to be in the range of $ 1.11 – $ 1.15 per share, compared to the company’s previous forecast range of $ 0.96 to $ 1.06 per share.1
The improvement in the forecast range is mainly due to higher than expected volumes and selling prices in the global industrial packaging business and a slightly lower than expected tax rate, partially offset by costs of SG&A higher than expected, primarily due to higher incentive accrued liabilities.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “may”, “will”, “expects”, “intends”, “estimates”, “anticipates” , “Aspiration”, “goal”, “project”, “believe”, “continue”, “on track” or “target” or their negative and similar expressions, among others, identify forward-looking statements. All forward-looking statements are based on assumptions, expectations and other information currently available to management. These forward-looking statements are subject to certain risks and uncertainties which could cause the actual results of the Company to differ materially from those anticipated, projected or anticipated, whether express or implied. The most significant of these risks and uncertainties are described in Part I of the Company’s Annual Report on Form 10-K for the fiscal year ended October 31, 2020. The Company assumes no obligation to update or revise the forward-looking statements.
Although the company believes that the expectations reflected in the forward-looking statements are on a reasonable basis, the company can give no assurance that these expectations will prove to be correct. Forward-looking statements are subject to risks and uncertainties which could cause the actual results of the Company to differ materially from those anticipated, projected or anticipated, whether expressed or implied in the statements. These risks and uncertainties that could cause a difference include, but are not limited to, the following: (i) historically our business has been sensitive to changes in general economic or business conditions, (ii) our global operations are subject to us currency exchange and political risks that could adversely affect our operating results, (iii) the COVID-19 pandemic could continue to have an impact on any combination of our business, financial condition, and operating results. operations and cash flows, (iv) the current and challenging global economy and the disruption and volatility of the financial and credit markets may adversely affect our business, (v) the continued consolidation of our customers and our suppliers may increase price pressure, (vi) we operate in highly competitive industries, (vii) our business is sensitive to changes in demand for industry and customer preferences, (viii) fluctuations and shortages in the prices of raw materials, energy and transportation can negatively impact our manufacturing. operations and costs, (ix) the frequency and volume of our timber and timberland sales will impact our financial performance, (x) we may not successfully implement our business strategies, including the achievement of our growth objectives, (xi) we could encounter difficulties or liabilities arising from acquisitions or divestments, (xii) the acquisition of Caraustar Industries, Inc. and its subsidiaries subject us to various risks and uncertainties, (xiii) we may incur additional restructuring costs and there can be no assurance that our efforts to reduce costs will be successful, (xiv) many transactions are carried out by joint ventures which we cannot operate solely to our advantage, (xv ) some of the agreements that govern our joint ventures provide our partners with put or buy options, (xvi) our ability to attract, develop and retain employees, management talented and skilled managers and executives is essential to our success, (xvii) our business may be adversely affected by work stoppages and oth With respect to labor relations, (xviii) we may be subject to losses which could not be covered in whole or in part by existing insurance reserves or insurance coverage and increases in premium and deductible of general insurance, (xix) our business depends on the uninterrupted operations of our facilities, our systems and our activities
functions, including our information technology and other business systems, (xx) a breach in the security of information about customers, employees, suppliers or the company may have a material adverse effect on our business, our financial condition, results of operations and cash flows, (xxi) changes in US generally accepted accounting principles (GAAP) and SEC rules and regulations regarding the maintenance of effective internal controls could affect material impact on our reported financial results, (xxii) we may be subject to changes in our tax rates, adoption of new tax laws or exposure to additional tax liabilities, (xxiii) full realization of our deferred tax assets may be affected by a number of factors, (xxiv) our level of indebtedness could have an adverse effect on our liquid ities, limit our flexibility to respond to business opportunities, and increase our vulnerability to adverse changes in economic and industrial conditions, (xxv) we have significant and long-term goodwill assets which, if they depreciate in the future, would adversely affect our results of operations, (xxvi) our pension and post-retirement plans are underfunded and will require future cash contributions and our required future cash contributions may be greater than expected, each of which ” between them which could have a material adverse effect on our financial position and our liquidity, (xxvii) the laws / regulations relating to environmental, health and safety and corporate social responsibility matters could have a negative impact on our operations and our financial performance, (xxviii) product liability claims and adversely affect our operations. ations and financial performance, (xxix) we may incur fines or penalties, damage to our reputation or other adverse consequences if our employees, agents or business partners violate, or are alleged to have violated, the law enforcement corruption, competition or other laws, (xxx) climate change, climate change regulations and the effects of greenhouse gases may affect our operations and financial performance. The risks described above are not exhaustive and, in light of these possible risks and uncertainties, as well as 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 important risks and uncertainties that could cause our actual results to differ materially from those expected, projected or anticipated, see “ Risk Factors ” in Part I, point 1A of our latest Form 10 -K filed and our other filings with the Securities and Exchange Commission. All forward-looking statements made in this press release are expressly qualified in their entirety by reference to these risk factors. Except to the limited extent required by applicable law, we assume no obligation to update or revise forward-looking statements, whether as a result of new information, future events or otherwise.
About Greif, Inc.
Greif is a global leader in industrial packaging products and services and pursues its vision: in industrial packaging, to be the most successful customer service company in the world. The company produces steel, plastic and fiber drums, intermediate bulk containers, reconditioned containers, flexible products, containerboard, uncoated recycled cardboard, coated recycled cardboard, tubes and cores and a diverse mix of specialized products. The company also manufactures packaging accessories and provides filling, packaging and other services for a wide range of industries. In addition, Greif manages timber properties in the Southeastern United States. The company is strategically positioned in more than 40 countries to serve global and regional customers. Additional information is available on the company’s website at www.greif.com.
1 Diluted Class A earnings per share for the second quarter of fiscal 2021 before adjustments, a non-GAAP financial measure, excludes adjustments for restructuring charges, acquisition and integration costs, non-cash asset impairment charges, non-cash pension settlement costs (income), additional COVID-19 costs, net and loss (gain) on disposal of properties, factories, equipment and services ‘companies, net. The most directly comparable GAAP financial measure, Fiscal 2021 second quarter diluted Class A earnings per share on a GAAP basis, is not provided here due to the potential for one or more of the following, the timing and extent of each At this point, the company remains unable to reliably forecast on an individual basis with probability: gains or losses on the disposal of businesses, woodlots or properties, factories and equipment, net; non-cash asset impairment charges; restructuring costs; additional non-monetary costs of COVID-19, net; settlement costs (income) of non-cash pensions; or costs associated with acquisition and integration; and the tax implications of these and other income taxes.
related events. Accordingly, no reconciliation of expected Class A earnings per share for the second quarter of fiscal 2021 before adjustments to the most directly comparable GAAP financial measure is included in this release.
Greif Inc. published this content on May 21, 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unchanged, on 21 May 2021 06:06:02 PM UTC.