/2.H8  d 1$&%*%'PART I. FINANCIAL INFORMATION1'ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS7'GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES('CONSOLIDATED STATEMENTS OF INCOME'(UNAUDITED)<'(U.S. dollars in thousands, except per share amounts) ^Three months ended ^Six months ended ^April 30, ^April 30,  ^2002  ^2001  ^2002  ^2001 'Net sales "$ 396,913 "$ 356,628 "$ 762,103 "$ 575,481!'Gain on sale of timberland "5,222 "35,152 "8,550 "78,259'Other income, net "698 "986 "4,037 "2,014"402,833"392,766"774,690"655,754'Cost of products sold"315,594"289,657"612,698"458,138*'Selling, general and administrative'expenses "66,275 "49,080"123,183 "81,499'Restructuring charge "-- "11,534 "-- "11,534'Interest expense, net "13,227 "8,987 "27,095 "12,218"395,096"359,258"762,976"563,389+'Income before income taxes, minority)'interest in income of consolidated-'subsidiaries and equity in earnings of'affiliates "7,737 "33,508 "11,714 "92,365!'Income taxes !"2,785 !"12,662 !"4,217 !"35,0283#'Income before minority interest in income of.$'consolidated subsidiaries and equity in%'earnings of affiliates %"4,952 %"20,846 %"7,497 %"57,3372''Minority interest in income of consolidated('subsidiaries ("(215) ("(134) ("(467) ("(134)')'Equity in earnings of affiliates )"2,179 )"2,246 )"3,692 )"4,330,'Net income,"$ 6,916,"$ 22,958,"$ 10,722,"$ 61,533 /'Basic earnings per share:1'Class A Common Stock1"$ 0.241"$ 0.811"$ 0.381"$ 2.182'Class B Common Stock2"$ 0.372"$ 1.222"$ 0.572"$ 3.26"4'Diluted earnings per share:6'Class A Common Stock6"$ 0.246"$ 0.816"$ 0.386"$ 2.177'Class B Common Stock7"$ 0.377"$ 1.227"$ 0.577"$ 3.26B:'See accompanying Notes to Consolidated Financial Statements7<'GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES"='CONSOLIDATED BALANCE SHEETS">'(U.S. dollars in thousands) ?'ASSETS@^April 30,@^October 31, A^2002 A^2001B^(Unaudited)D'CURRENT ASSETS E'Cash and cash equivalentsE"$ 51,818E"$ 29,7201F'Trade accounts receivable - less allowance#G'of $11,529 ($10,596 in 2001)G"247,094G"282,982H'InventoriesH"116,958H"123,363I'Net assets held for sale I"7,628 I"12,530J'Deferred tax asset J"9,725 J"9,697!K'Prepaid expenses and other K"45,163 K"51,112M"478,386M"509,404O'LONG-TERM ASSETS#P'Goodwill - less amortizationP"237,762P"236,623Q'Other intangible assets Q"31,025 Q"33,179R'Investment in affiliatesR"144,211R"144,071S'Other long-term assets S"35,626 S"44,282U"448,624U"458,1551W'PROPERTIES, PLANTS AND EQUIPMENT - at cost)X'Timber properties - less depletion X"75,377 X"74,851 Y'Land Y"81,694 Y"81,048Z'BuildingsZ"241,227Z"235,980['Machinery and equipment["709,536["689,637#\'Capital projects in progress \"34,438 \"43,200^"1,142,272^"1,124,716_'Accumulated depreciation_"(350,889)_"(315,879)a"791,383a"808,837d"$ 1,718,393d"$ 1,776,396Bg'See accompanying Notes to Consolidated Financial Statements7i'GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES"j'CONSOLIDATED BALANCE SHEETS"k'(U.S. dollars in thousands)+l'LIABILITIES AND SHAREHOLDERS' EQUITYm^April 30,m^October 31, n^2002 n^2001o^(Unaudited)q'CURRENT LIABILITIESr'Accounts payabler"$ 112,464r"$ 107,277-s'Accrued payrolls and employee benefits s"18,521 s"20,529t'Restructuring reserves t"4,751 t"15,109u'Short-term borrowings u"21,044 u"16,533(v'Current portion of long-term debt v"46,015 v"43,140 w'Other current liabilitiesw"108,735 w"96,139y"311,530y"298,727{'LONG-TERM LIABILITIES|'Long-term debt|"598,519|"654,374}'Deferred tax liability}"115,605}"124,346'~'Postretirement benefit liability ~"47,982 ~"50,028"'Other long-term liabilities "51,324 "62,015"813,430"890,763'MINORITY INTEREST "1,012 "560'SHAREHOLDERS' EQUITY&'Common stock, without par value "11,761 "10,446'Treasury stock, at cost"(59,638)"(58,812)'Retained earnings"674,854"671,917+'Accumulated other comprehensive loss&'- foreign currency translation"(24,168)"(21,378)'- interest rate swaps"(7,548)"(13,071)#'- minimum pension liability"(2,840)"(2,756)"592,421"586,346"$1,718,393"$1,776,396B'See accompanying Notes to Consolidated Financial Statements7'GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES,'CONSOLIDATED STATEMENTS OF CASH FLOWS'(UNAUDITED)"'(U.S. dollars in thousands))'For the six months ended April 30, ^2002 ^2001,'Cash flows from operating activities:'Net income"$ 10,722"$ 61,5336'Adjustments to reconcile net income to net cash('provided by operating activities:/'Depreciation, depletion and amortization "48,593 "34,012/'Equity in earnings of affiliates, net of'dividends received"(1,395)"(1,461)%'Minority interest in income of 'consolidated subsidiaries "467 "134'Deferred income taxes"(4,953) "25,0452'Gain on disposals of properties, plants and'equipment"(11,970)"(78,661)'Other, net"(7,040)"(31,516)0'Changes in current assets and liabilities "53,661 "38,8970'Net cash provided by operating activities "88,085 "47,983,'Cash flows from investing activities:+'Acquisition of business, net of cash "--"(310,197)4'Purchases of properties, plants and equipment"(25,259)"(103,194)6'Proceeds on disposals of properties, plants and'equipment "17,317 "82,799,'Net cash used in investing activities"(7,942)"(330,592),'Cash flows from financing activities:#'Proceeds from long-term debt "--"760,000!'Payments on long-term debt"(52,954)"(394,510)8'Proceeds from (payments on) short-term borrowings "4,581"(1,999)'Dividends paid"(7,787)"(7,237)%'Acquisitions of treasury stock "(948) "(117) 'Exercise of stock options "1,435 "--:'Net cash (used in) provided by financing activities"(55,673)"356,137('Effects of exchange rates on cash"(2,372)"(10,304)0'Net increase in cash and cash equivalents "22,098 "63,2247'Cash and cash equivalents at beginning of period "29,720 "13,3881'Cash and cash equivalents at end of period"$ 51,818"$ 76,612B'See accompanying Notes to Consolidated Financial Statements