/2 H-    d 1$&%*7'GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES('CONSOLIDATED STATEMENTS OF INCOME'(UNAUDITED)<'(U.S. Dollars in thousands, except per share amounts)^Three months^Three months^Six months^Six months ^ended ^ended ^ended ^ended^April 30,^April 30,^April 30,^April 30, ^2001 ^2000 ^2001 ^2000 'Net sales '$349,636 '$224,902 '$561,277 '$454,211 'Other income, net  '39,061  '3,058  '83,914  '11,097 '388,697 '227,960 '645,191 '465,308'Cost of products sold'282,665'176,647'443,934'346,2003'Selling, general and administrative expenses '49,080 '29,952 '81,499 '60,728'Restructuring charge '11,534 '-- '11,534 '--'Interest expense '11,910 '4,284 '15,859 '8,467'355,189'210,883'552,826'415,395+'Income before income taxes, minority4'interest and equity in earnings of affiliates '33,508 '17,077 '92,365 '49,913'Income taxes '12,662 '6,575 '35,028 '19,381*'Income before minority interest and''equity in earnings of affiliates '20,846 '10,502 '57,337 '30,532'Minority interest '134 '-- '134 '--' 'Equity in earnings of affiliates  '2,246  '3,459  '4,330  '6,446#'Net income#'$ 22,958#'$ 13,961#'$ 61,533#'$ 36,978 %'Basic earnings per share:''Class A Common Stock''$ 0.81''$ 0.49''$ 2.18''$ 1.31('Class B Common Stock('$ 1.22('$ 0.74('$ 3.26('$ 1.95"*'Diluted earnings per share:,'Class A Common Stock,'$ 0.81,'$ 0.49,'$ 2.17,'$ 1.30-'Class B Common Stock-'$ 1.22-'$ 0.74-'$ 3.26-'$ 1.95B/'See accompanying Notes to Consolidated Financial Statements71'GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES"2'CONSOLIDATED BALANCE SHEETS"3'(U.S. Dollars in thousands) 5'ASSETS6^April 30,6^October 31, 7^2001 7^20008^(Unaudited):'CURRENT ASSETS ;'Cash and cash equivalents;'$ 76,612;'$ 13,3881<'Trade accounts receivable - less allowance5='of $10,468 for doubtful items ($2,293 in 2000)='263,709='119,645>'Income tax receivable >'1,449 >'14,343?'Inventories?'138,680 ?'42,741@'Net assets held for sale @'9,346 @'8,495A'Deferred tax assets A'9,464 A'2,216!B'Prepaid expenses and other B'47,067 B'12,315D'Total current assetsD'546,327D'213,143F'LONG-TERM ASSETS2G'Goodwill and other intangible assets - lessH'amortizationH'191,197H'136,284I'Investment in affiliatesI'142,394I'136,374J'Other long-term assets J'57,933 J'17,868L'Total long-term assetsL'391,524L'290,5261N'PROPERTIES, PLANTS AND EQUIPMENT - at cost)O'Timber properties - less depletion O'73,439 O'21,518 P'Land P'83,166 P'12,330Q'BuildingsQ'237,967Q'133,591R'Machinery and equipmentR'729,219R'521,685#S'Capital projects in progress S'45,973 S'23,354U'1,169,764U'712,478V'Accumulated depreciationV'(295,152)V'(276,816)-X'Total properties, plants and equipmentX'874,612X'435,662['$ 1,812,463['$ 939,331B]'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^April 30,d^October 31, e^2001 e^2000f^(Unaudited)h'CURRENT LIABILITIESi'Accounts payablei'$ 104,771i'$ 45,075j'Bank overdrafts j'15,031 j'---k'Accrued payrolls and employee benefits k'16,076 k'11,216l'Restructuring reserve l'25,634 l'--m'Short-term borrowings m'19,690 m'--/n'Current portion of long-term obligations n'39,000 n'-- o'Other current liabilities o'62,038 o'8,656 q'Total current liabilitiesq'282,240 q'64,947s'LONG-TERM LIABILITIESt'Long-term obligationst'733,294t'235,000u'Deferred tax liabilityu'126,944 u'58,895'v'Postretirement benefit liability v'47,888 v'20,095"w'Other long-term liabilities w'38,116 w'17,880"y'Total long-term liabilitiesy'946,242y'331,870{'MINORITY INTEREST {'134 {'--%}'SHAREHOLDERS' EQUITY (Note 10)'~'Capital stock, without par value ~'10,383 ~'10,383'Class A Common Stock:$'Authorized 32,000,000 shares; 'issued 21,140,960 shares;$'outstanding 10,523,196 shares'Class B Common Stock:/'Authorized and issued 17,280,000 shares;$'outstanding 11,842,859 shares"'(11,847,359 shares in 2000)'Treasury stock, at cost'(58,011)'(57,894).'Class A Common Stock: 10,617,764 shares-'Class B Common Stock: 5,437,141 shares!'(5,432,641 shares in 2000)'Retained earnings'652,597'598,301-'Accumulated other comprehensive income&'- foreign currency translation'(18,620)'(8,276)'- interest rate swaps'(2,502) '--!'Total shareholder's equity'583,847'542,514'$1,812,463'$ 939,331B'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 six months ended April 30, ^2001 ^2000,'Cash flows from operating activities:'Net income'$ 61,533'$ 36,9786'Adjustments to reconcile net income to net cash('provided by operating activities:/'Depreciation, depletion and amortization '34,012 '24,289''Equity in earnings of affiliates''in excess of amounts distributed'(1,461)'(4,055)'Minority interest '134 '--'Deferred income taxes '25,045 '2,7972'Gain on disposals of properties, plants and'equipment'(78,661) '--'Other - net'(31,516)'(2,085)0'Changes in current assets and liabilities '38,897'(7,804)0'Net cash provided by operating activities '47,983 '50,120,'Cash flows from investing activities:-'Acquisition of businesses, net of cash'(310,197) '--+'Disposals of investments in Canadian'government securities '-- '5,3144'Purchases of properties, plants and equipment'(103,194)'(36,130)6'Proceeds on disposals of properties, plants and'equipment '82,799 '--,'Net cash used in investing activities'(330,592)'(30,816),'Cash flows from financing activities:#'Proceeds from long-term debt'760,000 '--!'Payments on long-term debt'(394,510)'(7,000)('Payments on short-term borrowings'(1,999) '--'Dividends paid'(7,237)'(6,698)%'Acquisitions of treasury stock '(117)'(4,968)'Other - net '-- '190/'Net cash provided by (used in) financing'activities'356,137'(18,476).'Foreign currency translation adjustment'(10,304) '4290'Net increase in cash and cash equivalents '63,224 '1,2577'Cash and cash equivalents at beginning of period '13,388 '8,9351'Cash and cash equivalents at end of period'$ 76,612'$ 10,192A'See accompanying Notes to Consolidated Financial Statement