The company reported that in Q3/19, net sales increased by $240.5 million (+23.76%) to $1,252.6 million compared to $1,012.1 in Q3/18 and during the same period gross profit increased by $62.3 million to $279.4 million. Net income in Q3/19 decreased to $62.7 million or $1.06 per diluted Class A share compared to net income of $67.7 million or $1.15 per diluted Class A share in Q3/18.
The company, which operates through three major product divisions, itemized Q3/19 performance separately for each group as follows: Rigid Industrial Packaging & Services Net sales decreased by $45.5 million to $642.1 million; Paper Packaging & Services Net sales increased by $294.4 million to $530.0 million; and Flexible Products & Services Net sales decreased by $8.1 million to $74.5 million. In addition, its Land Management Net sales increased by $0.1 million to $6.0 million.
Pete Watson, the company's president and CEO stated, "Greif produced solid Q3/19 results despite ongoing market softness and a weakening industrial economy...Q3/19 adjusted EBITDA rose by roughly 39.0% versus Q3/18, while Class A earnings per share, excluding the impact of adjustments, increased by 5.0%...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. 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, delever our balance sheet, and grow our profits".
Greif Inc. is headquartered in Delaware, Ohio, and is a global industrial packaging products manufacturer and services provider employing 17,000 people worldwide with operations in 43 countries. The company produces steel, plastic and fibre drums, intermediate bulk containers, reconditioned containers, flexible products, containerboard, uncoated recycled paperboard, coated recycled paperboard, tubes and cores and a diverse mix of specialty products. The firm also manufactures packaging accessories and provides filling, packaging and other services for a wide range of industries. The company also manages timber properties in the southeastern U.S.
Greif shares opened today at $35.00 (+$2.66, +8.23%) over yesterday's $32.34 closing price. The stock has traded between $34.10 and $37.71 /share today and is presently trading at $36.95 (+$4.65, +14.40%).[NLINSERT]
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