!/2H2    d 1$&%*%'PART I. FINANCIAL INFORMATION1'ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS7'GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES('CONSOLIDATED STATEMENTS OF INCOME'(UNAUDITED)7'(Dollars in thousands, except per share amounts) ^Three months ^Three months ^Six months ^Six months ^ended April 30, ^ended April 30, ^ended April 30, ^ended April 30,  ^2000  ^1999  ^2000  ^1999'Net sales"$224,902"$199,358"$454,211"$379,362'Other income, net "3,058 "4,865 "11,097 "6,839"227,960"204,223"465,308"386,201'Cost of products sold"176,647"159,491"346,200"308,080'Selling, general and'administrative expenses "29,952 "27,534 "60,728 "54,050'Interest expense "4,284 "3,838 "8,467 "7,703"210,883"190,863"415,395"369,833!'Income before income taxes 'and equity in earnings of'affiliates "17,077 "13,360 "49,913 "16,368'Income taxes "6,575 "5,402 "19,381 "6,549'Income before equity in'earnings of affiliates "10,502 "7,958 "30,532 "9,819 'Equity in earnings of!'affiliates !"3,459 !"2,903 !"6,446 !"4,723#'Net income#"$ 13,961#"$ 10,861#"$ 36,978#"$ 14,542 %'Basic earnings per share:&'Class A Common Stock&"$ 0.49&"$ 0.38&"$ 1.31&"$ 0.51''Class B Common Stock'"$ 0.74'"$ 0.56'"$ 1.95'"$ 0.75")'Diluted earnings per share:*'Class A Common Stock*"$ 0.49*"$ 0.38*"$ 1.30*"$ 0.51+'Class B Common Stock+"$ 0.74+"$ 0.56+"$ 1.95+"$ 0.75B-'See accompanying Notes to Consolidated Financial Statements7/'GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES"0'CONSOLIDATED BALANCE SHEETS1'(Dollars in thousands) 3'ASSETS5^April 30,5^October 31, 6^2000 6^19997^(Unaudited)9'CURRENT ASSETS :'Cash and cash equivalents:"$ 10,192:"$ 8,935%;'Canadian government securities ;"-- ;"5,314'<'Trade accounts receivable - less'='allowance of $1,510 for doubtful>'items ($2,456 in 1999)>"122,004>"124,754?'Inventories ?"47,434 ?"50,706@'Deferred tax asset @"7,243 @"6,857A'Net assets held for sale A"7,326 A"6,462!B'Prepaid expenses and other B"24,954 B"14,270C'Total current assetsC"219,153C"217,298E'LONG-TERM ASSETS#F'Goodwill - less amortizationF"139,783F"142,977G'Investment in affiliatesG"128,961G"124,360H'Other long-term assets H"20,215 H"25,218I"288,959I"292,5552K'PROPERTIES, PLANTS AND EQUIPMENT - at cost)L'Timber properties - less depletion L"13,753 L"9,925 M'Land M"10,425 M"12,280N'BuildingsN"123,125N"124,594O'Machinery and equipmentO"504,987O"491,533#P'Capital projects in progress P"50,243 P"40,651Q"702,533Q"678,983R'Accumulated depreciationR"(286,756)R"(277,850)S"415,777S"401,133U"$ 923,889U"$ 910,986+W'LIABILITIES AND SHAREHOLDERS' EQUITYY'CURRENT LIABILITIESZ'Accounts payableZ"$ 51,763Z"$ 46,703-['Accrued payrolls and employee benefits ["11,514 ["10,154\'Restructuring reserves \"-- \"5,157 ]'Other current liabilities ]"6,061 ]"10,017 ^'Total current liabilities ^"69,338 ^"72,031`'LONG-TERM LIABILITIESa'Long-term obligationsa"251,000a"258,000b'Deferred tax liability b"52,687 b"48,960'c'Postretirement benefit liability c"20,705 c"21,154"d'Other long-term liabilities d"16,298 d"22,859"e'Total long-term liabilitiese"340,690e"350,973$g'SHAREHOLDERS' EQUITY (Note 2)'h'Capital stock, without par value h"10,383 h"10,207i'Class A Common Stock:$j'Authorized 32,000,000 shares; k'issued 21,140,960 shares;$l'outstanding 10,523,196 sharesm'(10,653,396 in 1999)n'Class B Common Stock:/o'Authorized and issued 17,280,000 shares;$p'outstanding 11,847,359 sharesq'(11,873,896 in 1999)r'Treasury Stock, at costr"(57,894)r"(52,940).s'Class A Common Stock: 10,617,764 sharest'(10,487,564 in 1999).u'Class B Common Stock: 5,432,641 sharesv'(5,406,104 in 1999)w'Retained earningsw"567,406w"537,126-x'Accumulated other comprehensive income%y'- foreign currency translationy"(6,034)y"(6,411)z"513,861z"487,982|"$ 923,889|"$ 910,986B~'See accompanying Notes to Consolidated Financial Statements7'GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES,'CONSOLIDATED STATEMENTS OF CASH FLOWS'(UNAUDITED)'(Dollars in thousands))'For the six months ended April 30, ^2000 ^1999,'Cash flows from operating activities:'Net income"$ 36,978"$ 14,542*'Adjustments to reconcile net income('to net cash provided by operating'activities:/'Depreciation, depletion and amortization "24,289 "21,913*'Undistributed equity in earnings of'affiliates"(4,055)"(4,723)'Deferred income taxes "2,797 "401'Other - net"(2,085) "(892)$'Changes in current assets and''liabilities, net of effects from$'acquisitions and dispositions"(7,804) "4,0170'Net cash provided by operating activities "50,120 "35,258,'Cash flows from investing activities:1'Acquisitions and dispositions, net of cash "--"(69,208)+'Disposals of investments in Canadian'government securities "5,314 "1,252*'Purchases of properties, plants and'equipment"(36,130)"(23,585),'Net cash used by investing activities"(30,816)"(91,541),'Cash flows from financing activities:#'Proceeds from long-term debt "-- "54,500!'Payments on long-term debt"(7,000)"(21,500)'Dividends paid"(6,698)"(6,818)%'Acquisitions of treasury stock"(4,968)"(1,048)'Other - net "190 "--/'Net cash (used in) provided by financing'activities"(18,476) "25,134.'Foreign currency translation adjustment "429 "1,433/'Net increase (decrease) in cash and cash'equivalents "1,257"(29,716)0'Cash and cash equivalents at beginning of 'period "8,935 "41,3291'Cash and cash equivalents at end of period"$ 10,192"$ 11,613B'See accompanying Notes to Consolidated Financial Statements