/2 H7  d 1$&%*1'ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS7'GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES('CONSOLIDATED STATEMENTS OF INCOME'(UNAUDITED)7'(Dollars in thousands, except per share amounts)-'For the three months ended January 31, ^2000 ^1999 'Net sales "$229,309 "$180,004 'Other income, net  "8,039  "1,974 "237,348 "181,978'Cost of products sold"169,553"148,5893'Selling, general and administrative expenses "30,776 "26,516'Interest expense "4,183 "3,865"204,512"178,970/'Income before income taxes and equity in'earnings of affiliates "32,836 "3,008'Income taxes "12,806 "1,1475'Income before equity in earnings of affiliates" 20,030 "1,861''Equity in earnings of affiliates "2,987 "1,820'Net income"$ 23,017"$ 3,681,'Basic and diluted earnings per share:'Class A Common Stock"$ 0.81"$ 0.13 'Class B Common Stock "$ 1.21 "$ 0.19B"'See accompanying Notes to Consolidated Financial Statements7$'GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES"%'CONSOLIDATED BALANCE SHEETS&'(Dollars in thousands) ''ASSETS(^January 31,(^October 31, )^2000 )^1999*^(Unaudited)+'CURRENT ASSETS ,'Cash and cash equivalents,"$ 22,121,"$ 8,935%-'Canadian government securities -"5,381 -"5,3141.'Trade accounts receivable - less allowance4/'of $2,849 for doubtful items ($2,456 in 1999)/"121,278/"124,7540'Inventories 0"41,732 0"50,7061'Deferred tax asset 1"6,857 1"6,8572'Net assets held for sale 2"8,457 2"6,462!3'Prepaid expenses and other 3"14,751 3"14,2704'Total current assets4"220,5774"217,2986'LONG-TERM ASSETS#7'Goodwill - less amortization7"141,2307"142,9778'Investment in affiliates8"125,2438"124,3609'Other long-term assets 9"24,630 9"25,218:"291,103:"292,5551<'PROPERTIES, PLANTS AND EQUIPMENT - at cost)='Timber properties - less depletion ="11,225 ="9,925 >'Land >"12,975 >"12,280?'Buildings?"121,918?"124,594@'Machinery and equipment@"499,963@"491,533#A'Capital projects in progress A"41,014 A"40,651B"687,095B"678,983C'Accumulated depreciationC"(280,265)C"(277,850)D"406,830D"401,133F"$ 918,510F"$ 910,986+H'LIABILITIES AND SHAREHOLDERS' EQUITYJ'CURRENT LIABILITIESK'Accounts payableK"$ 36,919K"$ 46,703-L'Accrued payrolls and employee benefits L"7,312 L"10,154M'Restructuring reserves M"2,601 M"5,157N'Income taxes payable N"10,386 N"-- O'Other current liabilities O"9,997 O"10,017 P'Total current liabilities P"67,215 P"72,031R'LONG-TERM LIABILITIESS'Long-term obligationsS"253,000S"258,000T'Deferred tax liability T"49,817 T"48,960'U'Postretirement benefit liability U"21,624 U"21,154"V'Other long-term liabilities V"20,984 V"22,859"W'Total long-term liabilitiesW"345,425W"350,973$Y'SHAREHOLDERS' EQUITY (Note 2)'Z'Capital stock, without par value Z"10,228 Z"10,207['Class A Common Stock:$\'Authorized 32,000,000 shares; ]'issued 21,140,960 shares;$^'outstanding 10,587,296 shares_'(10,653,396 in 1999)`'Class B Common Stock:/a'Authorized and issued 17,280,000 shares;$b'outstanding 11,847,859 sharesc'(11,873,896 in 1999)d'Treasury Stock, at costd"(55,694)d"(52,940).e'Class A Common Stock: 10,553,664 sharesf'(10,487,564 in 1999).g'Class B Common Stock: 5,432,141 sharesh'(5,406,104 in 1999)i'Retained earningsi"556,846i"537,126-j'Accumulated other comprehensive income%k'- foreign currency translationk"(5,510)k"(6,411)l"505,870l"487,982n"$ 918,510n"$ 910,986Bp'See accompanying Notes to Consolidated Financial Statements7r'GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES,s'CONSOLIDATED STATEMENTS OF CASH FLOWSt'(UNAUDITED)u'(Dollars in thousands)-w'For the three months ended January 31, w^2000 w^1999,y'Cash flows from operating activities:z'Net incomez"$ 23,017z"$ 3,6816{'Adjustments to reconcile net income to net cash(|'provided by operating activities:/}'Depreciation, depletion and amortization }"12,060 }"11,1115~'Undistributed equity in earnings of affiliates ~"(596)~"(1,820)'Deferred income taxes "565 "713'Other - net"(1,287)"(1,416)5'Changes in current assets and liabilities, net4'of effects from acquisitions and dispositions "7,556 "4,3800'Net cash provided by operating activities "41,315 "16,649,'Cash flows from investing activities:1'Acquisitions and dispositions, net of cash "--"(49,452)+'Disposals of investments in Canadian'government securities "-- "1,3214'Purchases of properties, plants and equipment"(17,858)"(8,361),'Net cash used by investing activities"(17,858)"(56,492),'Cash flows from financing activities:#'Proceeds from long-term debt "-- "36,500!'Payments on long-term debt"(5,000)"(21,500)'Dividends paid"(3,297)"(3,349)%'Acquisitions of treasury stock"(2,756) "--'Other - net "23 "--/'Net cash (used in) provided by financing'activities"(11,030) "11,651.'Foreign currency translation adjustment "759 "408/'Net increase (decrease) in cash and cash'equivalents "13,186"(27,784)7'Cash and cash equivalents at beginning of period "8,935 "41,3291'Cash and cash equivalents at end of period"$ 22,121"$ 13,545B'See accompanying Notes to Consolidated Financial Statements