Industrial packaging services provider Greif has reported a net income of $36m, or $0.61 per diluted share, for the second quarter of 2017, compared to $31.4m, or $0.53 per diluted share, for the same period in 2016.
The company’s net sales have increased by $47.8m to $887.4m from $839.6m, compared to last year. It was a 5.7% increase, in terms of percentage.
The company's gross profit increased $8.2m from $173.7m to $181.9m, compared to last year’s results.
Greif stated that its operating profit decreased by $2.4m from $82.8m to $80.4m and the operating profit before special items increased by $5.6m from 79.3m to $84.9m, compared to last year.
Category-wise, the company stated its rigid industrial packaging and services showed an increase in net sales by $34.7m to $624.3m.
Divestitures and foreign currency translation are said to have negatively impacted net sales by $27.1m and $9.9m, respectively. Gross profit increased by $10.0m to $133.9m (21.4%). However, its operating profit declined by $3.7m to $55.5m.
For the paper packaging and services, the net sales increased by $21.5m to $188.7m. The increase has been attributed to volume increase in its mills and corrugator facilities and increased sales of specialty products. But, the gross profit declined by $4.4m to $19.8m.
For the flexible products and services, its net sales decreased by $9.6m to $66.6m. But, the gross profit increased by $2.7m to $12.3m or 18.5%.
Greif president and CEO Pete Watson said “We generated strong financial results this quarter through improved customer service and disciplined commercial and operation execution. Greif’s operating profit before special items and our Class A earnings per share before special items both significantly improved compared to the prior year quarter.
“Greif’s improved financial and operational stability underpins our strategy to generate greater value for our customers and shareholders.”