/2 H=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 "Nine Months "Nine Months "ended July 31, "ended July 31, "ended July 31, "ended July 31,  "2000  "1999  "2000  "1999'Net sales"$236,249"$205,032"$690,460"$584,394'Other income, net "3,225 "3,773 "14,322 "10,612"239,474"208,805"704,782"595,006'Cost of products sold"179,119"163,826"525,319"471,906'Selling, general and'administrative expenses "31,708 "26,563 "92,436 "80,613'Interest expense "4,184 "4,157 "12,651 "11,860"215,011"194,546"630,406"564,379!'Income before income taxes 'and equity in earnings of'affiliates "24,463 "14,259 "74,376 "30,627'Income taxes "9,254 "5,702 "28,635 "12,251'Income before equity in'earnings of affiliates "15,209 "8,557 "45,741 "18,376' 'Equity in earnings of affiliates  "3,620  "2,349  "10,066  "7,072"'Net income""$ 18,829""$ 10,906""$ 55,807""$ 25,448 $'Basic earnings per share:%'Class A Common Stock%"$ 0.67%"$ 0.38%"$ 1.97%"$ 0.88&'Class B Common Stock&"$ 1.00&"$ 0.57&"$ 2.95&"$ 1.32"('Diluted earnings per share:)'Class A Common Stock)"$ 0.66)"$ 0.38)"$ 1.97)"$ 0.88*'Class B Common Stock*"$ 1.00*"$ 0.57*"$ 2.95*"$ 1.32B-'See accompanying Notes to Consolidated Financial Statements7/'GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES"0'CONSOLIDATED BALANCE SHEETS1'(Dollars in thousands) 4'ASSETS6"July 31,6"October 31, 7"2000 7"19998"(Unaudited):'CURRENT ASSETS ;'Cash and cash equivalents;"$ 17,673;"$ 8,935%<'Canadian government securities <"-- <"5,314"='Trade accounts receivable -#>'less allowance of $2,259 for&?'doubtful items ($2,456 in 1999)?"115,440?"124,754@'Inventories @"47,836 @"50,706A'Deferred tax asset A"9,011 A"6,857B'Net assets held for sale B"8,413 B"6,462!C'Prepaid expenses and other C"18,511 C"14,270D'Total current assetsD"216,884D"217,298F'LONG-TERM ASSETS#G'Goodwill - less amortizationG"138,034G"142,977H'Investment in affiliatesH"132,885H"124,360I'Other long-term assets I"19,459 I"25,218J"290,378J"292,5551L'PROPERTIES, PLANTS AND EQUIPMENT - at cost)M'Timber properties - less depletion M"21,063 M"9,925 N'Land N"10,439 N"12,280O'BuildingsO"117,428O"124,594P'Machinery and equipmentP"509,708P"491,533#Q'Capital projects in progress Q"58,788 Q"40,651R"717,426R"678,983S'Accumulated depreciationS"(289,517)S"(277,850)T"427,909T"401,133U"$ 935,171U"$ 910,986BX'See accompanying Notes to Consolidated Financial Statements7['GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES"\'CONSOLIDATED BALANCE SHEETS]'(Dollars in thousands)*`'LIABILITIES AND SHAREHOLDERS EQUITYb"July 31,b"October 31, c"2000 c"1999d"(Unaudited)f'CURRENT LIABILITIESg'Accounts payableg"$ 47,541g"$ 46,703-h'Accrued payrolls and employee benefits h"11,712 h"10,154i'Restructuring reserves i"-- i"5,157 j'Other current liabilities j"5,557 j"10,017 k'Total current liabilities k"64,810 k"72,031m'LONG-TERM LIABILITIESn'Long-term obligationsn"249,000n"258,000o'Deferred tax liability o"53,577 o"48,960'p'Postretirement benefit liability p"21,155 p"21,154"q'Other long-term liabilities q"18,848 q"22,859"r'Total long-term liabilitiesr"342,580r"350,973$t'SHAREHOLDERS' EQUITY (Note 2)'u'Capital stock, without par value u"10,383 u"10,207v'Class A Common Stock:$w'Authorized 32,000,000 shares; x'issued 21,140,960 shares;$y'outstanding 10,523,196 sharesz'(10,653,396 in 1999){'Class B Common Stock:/|'Authorized and issued 17,280,000 shares;$}'outstanding 11,847,359 shares~'(11,873,896 in 1999)'Treasury Stock, at cost"(57,894)"(52,940).'Class A Common Stock: 10,617,764 shares'(10,487,564 in 1999).'Class B Common Stock: 5,432,641 shares'(5,406,104 in 1999)'Retained earnings"582,275"537,126-'Accumulated other comprehensive income%'- foreign currency translation"(6,983)"(6,411)"527,781"487,982"$ 935,171"$ 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 nine months ended July 31, "2000 "1999,'Cash flows from operating activities:'Net income"$ 55,807"$ 25,4486'Adjustments to reconcile net income to net cash('provided by operating activities:/'Depreciation, depletion and amortization "33,515 "32,7945'Undistributed equity in earnings of affiliates"(7,675)"(7,072)'Deferred income taxes "1,616"(2,607)'Other - net "2,970 "3,6815'Changes in current assets and liabilities, net4'of effects from acquisitions and dispositions "723 "15,9050'Net cash provided by operating activities "86,956 "68,149,'Cash flows from investing activities:1'Acquisitions and dispositions, net of cash "--"(71,811)+'Disposals of investments in Canadian'government securities "5,314 "1,4354'Purchases of properties, plants and equipment"(58,614)"(32,260),'Net cash used by investing activities"(53,300)"(102,636),'Cash flows from financing activities:#'Proceeds from long-term debt "-- "54,500!'Payments on long-term debt"(9,000)"(23,528)'Dividends paid"(10,658)"(10,284)%'Acquisitions of treasury stock"(4,968)"(2,590)'Other - net "190 "--/'Net cash (used in) provided by financing'activities"(24,436) "18,098.'Foreign currency translation adjustment "(482) "776/'Net increase (decrease) in cash and cash'equivalents "8,738"(15,613)7'Cash and cash equivalents at beginning of period "8,935 "41,3291'Cash and cash equivalents at end of period"$ 17,673"$ 25,716B'See accompanying Notes to Consolidated Financial Statements