/2H-d 1$&%*$'PART I. FINANCIAL INFORMATION0'ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS7'GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES('CONSOLIDATED STATEMENTS OF INCOME'(UNAUDITED)<'(U.S. dollars in thousands, except per share amounts)^Three months^Three months^ended January 31,^ended January 31,  ^2002  ^2001 'Net sales "$365,190 "$218,853! 'Gain on sale of timberland  "3,328  "43,107 'Other income, net  "3,339  "1,028"371,857"262,988'Cost of products sold"297,104"168,4813'Selling, general and administrative expenses "56,908 "32,419'Interest expense, net "13,868 "3,231"367,880"204,131+'Income before income taxes, minority6'interest in income of consolidated subsidiaries+'and equity in earnings of affiliates "3,977 "58,857'Income taxes "1,432 "22,3663'Income before minority interest in income of.'consolidated subsidiaries and equity in 'earnings of affiliates  "2,545  "36,491?"'Minority interest in income of consolidated subsidiaries ""(252) ""--'#'Equity in earnings of affiliates #"1,513 #"2,084&'Net income&"$ 3,806&"$38,575 ''Basic earnings per share:)'Class A Common Stock)"$ 0.14)"$ 1.37*'Class B Common Stock*"$ 0.20*"$ 2.04",'Diluted earnings per share:"-'---------------------------.'Class A Common Stock."$ 0.14."$ 1.36/'Class B Common Stock/"$ 0.20/"$ 2.04B2'See accompanying Notes to Consolidated Financial Statements74'GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES"5'CONSOLIDATED BALANCE SHEETS"6'(U.S. dollars in thousands) 7'ASSETS9^January 31,9^October 31, :^2002 :^2001;^(Unaudited)<'CURRENT ASSETS ='Cash and cash equivalents="$ 25,804="$ 29,7201>'Trade accounts receivable - less allowance#?'of $10,280 ($10,596 in 2001)?"235,108?"282,982@'Inventories@"119,098@"123,363A'Net assets held for sale A"11,045 A"12,530B'Deferred tax asset B"9,335 B"9,697!C'Prepaid expenses and other C"47,876 C"51,112E"448,266E"509,404G'LONG-TERM ASSETS#H'Goodwill - less amortizationH"233,802H"236,623I'Other intangible assets I"32,033 I"33,179J'Investment in affiliatesJ"143,420J"144,071K'Other long-term assets K"41,623 K"44,282M"450,878M"458,1551O'PROPERTIES, PLANTS AND EQUIPMENT - at cost)P'Timber properties - less depletion P"74,625 P"74,851 Q'Land Q"80,067 Q"81,048R'BuildingsR"238,486R"235,980S'Machinery and equipmentS"699,063S"689,637#T'Capital projects in progress T"46,015 T"43,200V"1,138,256V"1,124,716W'Accumulated depreciationW"(343,368)W"(315,879)Y"794,888Y"808,837\"$1,694,032\"$1,776,396B]'See accompanying Notes to Consolidated Financial Statements7_'GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES"`'CONSOLIDATED BALANCE SHEETS"a'(U.S. dollars in thousands)+b'LIABILITIES AND SHAREHOLDERS' EQUITYd^January 31,d^October 31, e^2002 e^2001f^(Unaudited)h'CURRENT LIABILITIESi'Accounts payablei"$ 90,889i"$ 107,277-j'Accrued payrolls and employee benefits j"14,053 j"20,529k'Restructuring reserves k"9,636 k"15,109l'Short-term borrowings l"19,915 l"16,533(m'Current portion of long-term debt m"39,980 m"43,140 n'Other current liabilities n"82,141 n"96,139p"256,614p"298,727r'LONG-TERM LIABILITIESs'Long-term debts"625,905s"654,374t'Deferred tax liabilityt"119,609t"124,346'u'Postretirement benefit liability u"47,333 u"50,028"v'Other long-term liabilities v"55,565 v"62,015x"848,412x"890,763{'MINORITY INTEREST {"811 {"560~'SHAREHOLDERS' EQUITY&'Common stock, without par value "10,739 "10,446'Treasury stock, at cost"(59,395)"(58,812)'Retained earnings"671,888"671,917+'Accumulated other comprehensive loss%'- foreign currency translation"(23,572)"(21,378)'- interest rate swaps"(8,625)"(13,071)"'- minimum pension liability"(2,840)"(2,756)"588,195"586,346"$1,694,032"$1,776,396B'See accompanying Notes to Consolidated Financial Statements7'GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES,'CONSOLIDATED STATEMENTS OF CASH FLOWS'(UNAUDITED)"'(U.S. dollars in thousands)-'For the three months ended January 31, ^2002 ^2001,'Cash flows from operating activities:'Net income"$ 3,806"$ 38,5756'Adjustments to reconcile net income to net cash('provided by operating activities:/'Depreciation, depletion and amortization "23,985 "11,830/'Equity in earnings of affiliates, net of'dividends received "784 "785%'Minority interest in income of 'consolidated subsidiaries "252 "--'Deferred income taxes"(1,165) "18,8422'Gain on disposals of properties, plants and'equipment"(4,838)"(43,621)'Other, net"(7,377)"(2,270)0'Changes in current assets and liabilities "13,040 "13,3310'Net cash provided by operating activities "28,487 "37,472,'Cash flows from investing activities:4'Purchases of properties, plants and equipment"(10,524)"(52,351)6'Proceeds on disposals of properties, plants and'equipment "5,684 "45,341,'Net cash used in investing activities"(4,840)"(7,010),'Cash flows from financing activities:!'Payments on long-term debt"(25,534)"(20,000)*'Proceeds from short-term borrowings "3,820 "--'Dividends paid"(3,835)"(3,277)%'Acquisitions of treasury stock "(612) "(117) 'Exercise of stock options "322 "--,'Net cash used in financing activities"(25,839)"(23,394)('Effects of exchange rates on cash"(1,724) "616;'Net (decrease) increase in cash and cash equivalents"(3,916) "7,6847'Cash and cash equivalents at beginning of period "29,720 "13,3881'Cash and cash equivalents at end of period"$ 25,804"$ 21,072B'See accompanying Notes to Consolidated Financial Statements