/2H-  d 1$&%*$'PART I. FINANCIAL INFORMATION0'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,  ^2001  ^2000 'Net sales "$211,641 "$229,309! 'Other income, net (Note 5)  "44,853  "8,039 "256,494 "237,348'Cost of products sold"161,269"169,5533'Selling, general and administrative expenses "32,419 "30,776'Interest expense "3,949 "4,183"197,637"204,512/'Income before income taxes and equity in'earnings of affiliates "58,857 "32,836'Income taxes "22,366 "12,8065'Income before equity in earnings of affiliates "36,491 "20,030''Equity in earnings of affiliates "2,084 "2,987'Net income"$ 38,575"$ 23,017 'Basic earnings per share:'Class A Common Stock"$ 1.37"$ 0.81'Class B Common Stock"$ 2.04"$ 1.21" 'Diluted earnings per share:!'Class A Common Stock!"$ 1.36!"$ 0.81"'Class B Common Stock""$ 2.04""$ 1.21B$'See accompanying Notes to Consolidated Financial Statements7&'GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES"''CONSOLIDATED BALANCE SHEETS('(Dollars in thousands) *'ASSETS+^January 31,+^October 31, ,^2001 ,^2000-^(Unaudited).'CURRENT ASSETS /'Cash and cash equivalents/"$ 21,072/"$ 13,388/0'Trade accounts receivable-less allowance41'of $2,624 for doubtful items ($2,293 in 2000)1"110,1151"119,6452'Income tax receivable 2"-- 2"14,3433'Inventories 3"41,305 3"42,7414'Net assets held for sale 4"8,169 4"8,495!5'Prepaid expenses and other 5"13,028 5"14,5316'Total current assets6"193,6896"213,1438'LONG-TERM ASSETS!9'Goodwill-less amortization9"134,5349"136,284:'Investment in affiliates:"135,801:"136,374;'Other long-term assets ;"18,021 ;"17,868<"288,356<"290,526/>'PROPERTIES, PLANTS AND EQUIPMENT-at cost'?'Timber properties-less depletion ?"44,615 ?"21,518 @'Land @"31,285 @"12,330A'BuildingsA"133,829A"133,591B'Machinery and equipmentB"526,073B"521,685#C'Capital projects in progress C"28,289 C"23,354D"764,091D"712,478F'Accumulated depreciationF"(287,337)F"(276,816)G"476,754G"435,662I"$ 958,799I"$ 939,331BK'See accompanying Notes to Consolidated Financial Statements7M'GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES"N'CONSOLIDATED BALANCE SHEETSO'(Dollars in thousands)+Q'LIABILITIES AND SHAREHOLDERS' EQUITYS^January 31,S^October 31, T^2001 T^2000U^(Unaudited)W'CURRENT LIABILITIESX'Accounts payableX"$ 37,802X"$ 45,075-Y'Accrued payrolls and employee benefits Y"7,720 Y"11,216Z'Income taxes payable Z"3,438 Z"2,593 ['Other current liabilities ["4,368 ["6,063 \'Total current liabilities \"53,328 \"64,947^'LONG-TERM LIABILITIES_'Long-term obligations_"215,000_"235,000`'Deferred tax liability `"75,529 `"58,895'a'Postretirement benefit liability a"20,449 a"20,095"b'Other long-term liabilities b"17,407 b"17,880"c'Total long-term liabilitiesc"323,385c"331,870$e'SHAREHOLDERS' EQUITY (Note 7)'f'Capital stock, without par value f"10,383 f"10,383g'Class A Common Stock:$h'Authorized 32,000,000 shares; i'issued 21,140,960 shares;$j'outstanding 10,523,196 sharesk'Class B Common Stock:/l'Authorized and issued 17,280,000 shares;$m'outstanding 11,842,859 shares"n'(11,847,359 shares in 2000)o'Treasury Stock, at costo"(58,011)o"(57,894).p'Class A Common Stock: 10,617,764 shares-q'Class B Common Stock: 5,437,141 shares!r'(5,432,641 shares in 2000)t'Retained earningst"633,599t"598,301-u'Accumulated other comprehensive income(v'- foreign currency translationv"(7,485)v"(8,276)w'- interest rate swapsw"(1,400) w"--x"577,086x"542,514z"$ 958,799z"$ 939,331B|'See accompanying Notes to Consolidated Financial Statements7~'GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES,'CONSOLIDATED STATEMENTS OF CASH FLOWS'(UNAUDITED)'(Dollars in thousands)-'For the three months ended January 31, ^2001 ^2000,'Cash flows from operating activities:'Net income"$ 38,575"$ 23,0176'Adjustments to reconcile net income to net cash('provided by operating activities:/'Depreciation, depletion and amortization "11,798 "12,0605'Equity in earnings of affiliates less than (in%'excess of) amounts distributed "785 "(596)'Deferred income taxes "18,630 "5652'Gain on disposals of properties, plants and'equipment"(43,621)"(5,923)'Other - net"(2,026)"(1,287)0'Changes in current assets and liabilities "13,331 "7,5560'Net cash provided by operating activities "37,472 "35,392,'Cash flows from investing activities:4'Purchases of properties, plants and equipment"(52,351)"(17,858)6'Proceeds on disposals of properties, plants and'equipment "45,341 "5,923,'Net cash used in investing activities"(7,010)"(11,935),'Cash flows from financing activities:!'Payments on long-term debt"(20,000)"(5,000)'Dividends paid"(3,277)"(3,297)%'Acquisitions of treasury stock "(117)"(2,756)'Other - net "-- "23,'Net cash used in financing activities"(23,394)"(11,030).'Foreign currency translation adjustment "616 "7590'Net increase in cash and cash equivalents "7,684 "13,1867'Cash and cash equivalents at beginning of period "13,388 "8,9351'Cash and cash equivalents at end of period"$ 21,072"$ 22,121B'See accompanying Notes to Consolidated Financial Statements