/2H-    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^Nine months^Nine months^ended July 31,^ended July 31,^ended July 31,^ended July 31, ^2001 ^2000 ^2001 ^2000 'Net sales "$435,765 "$243,856 "$1,011,247 "$716,306" 'Gain on sale of timberlands  "415  "141  "78,674  "6,430 'Other income, net  "2,275  "2,424  "4,288  "5,734"438,455"246,421"1,094,209"728,470'Cost of products sold"344,524"186,726"802,663"551,1653'Selling, general and administrative expenses "60,196 "31,708"141,695 "92,436'Restructuring charge "-- "-- "11,534 "--'Interest expense, net "17,048 "3,524 "29,265 "10,493"421,768"221,958"985,157"654,094+'Income before income taxes, minority4'interest and equity in earnings of affiliates "16,687 "24,463"109,052 "74,376'Income taxes "6,303 "9,254 "41,331 "28,635*'Income before minority interest and''equity in earnings of affiliates "10,384 "15,209 "67,721 "45,741 'Minority interest  "224  "--  "358  "--'!'Equity in earnings of affiliates !"2,753 !"3,620 !"7,083 !"10,066$'Net income$"$12,913$"$18,829$"$ 74,446$"$ 55,807 ('Basic earnings per share:+'Class A Common Stock+"$ 0.46+"$ 0.67+"$ 2.64+"$ 1.97,'Class B Common Stock,"$ 0.68,"$ 1.00,"$ 3.94,"$ 2.95".'Diluted earnings per share:1'Class A Common Stock1"$ 0.46 1"$ 0.661"$ 2.631"$ 1.972'Class B Common Stock2"$ 0.68 2"$ 1.002"$ 3.942"$ 2.95B5'See accompanying Notes to Consolidated Financial Statements77^GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES"8^CONSOLIDATED BALANCE SHEETS"9^(U.S. Dollars in thousands) ;'ASSETS<^July 31,<^October 31, =^2001 =^2000>^(Unaudited)@'CURRENT ASSETS A'Cash and cash equivalentsA"$ 56,301A"$ 13,3881B'Trade accounts receivable - less allowance5C'of $11,353 for doubtful items ($2,293 in 2000)C"282,716C"119,645D'Income tax receivable D"-- D"14,343E'InventoriesE"130,732 E"42,741F'Net assets held for sale F"8,839 F"8,495G'Deferred tax assets G"9,464 G"2,216!H'Prepaid expenses and other H"45,454 H"12,315J"533,506J"213,143L'LONG-TERM ASSETS#M'Goodwill - less amortizationM"168,261M"136,284N'Other intangible assets N"37,590 N"1,816O'Investment in affiliatesO"145,238O"136,374P'Other long-term assets P"44,946 P"16,052R"396,035R"290,5261T'PROPERTIES, PLANTS AND EQUIPMENT - at cost)U'Timber properties - less depletion U"74,034 U"21,518 V'Land V"87,685 V"12,330W'BuildingsW"242,311W"133,591X'Machinery and equipmentX"712,798X"521,685#Y'Capital projects in progress Y"47,546 Y"23,354["1,164,374["712,478\'Accumulated depreciation\"(316,477)\"(276,816)^"847,897^"435,662a"$1,777,438a"$ 939,331Be'See accompanying Notes to Consolidated Financial Statements7g^GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES"h^CONSOLIDATED BALANCE SHEETS"i^(U.S. Dollars in thousands)+j^LIABILITIES AND SHAREHOLDERS' EQUITYl^July 31,l^October 31, m^2001 m^2000n^(Unaudited)p'CURRENT LIABILITIESq'Accounts payableq"$ 112,510q"$ 45,075r'Bank overdrafts r"8,129 r"---s'Accrued payrolls and employee benefits s"17,331 s"11,216t'Restructuring reserve t"20,278 t"--u'Short-term borrowings u"16,641 u"--(v'Current portion of long-term debt v"40,600 v"-- w'Other current liabilities w"84,461 w"8,656y"299,950 y"64,947{'LONG-TERM LIABILITIES|'Long-term debt|"681,290|"235,000}'Deferred tax liability}"115,007 }"58,895'~'Postretirement benefit liability ~"46,961 ~"20,095"'Other long-term liabilities "33,928 "17,880"877,186"331,870'MINORITY INTEREST "358 "--%'SHAREHOLDERS' EQUITY (Note 11)&'Common stock, without par value "10,446 "10,383'Treasury stock, at cost"(58,005)"(57,894)'Retained earnings"661,550"598,301-'Accumulated other comprehensive income('- foreign currency translation"(8,785)"(8,276)'- interest rate swaps"(5,262) "--"599,944"542,514"$1,777,438"$ 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 nine months ended July 31, "2001 "2000,'Cash flows from operating activities:'Net income"$ 74,446"$ 55,8076'Adjustments to reconcile net income to net cash('provided by operating activities:/'Depreciation, depletion and amortization "57,462 "35,498''Equity in earnings of affiliates''in excess of amounts distributed"(4,214)"(7,675)'Minority interest "358 "--'Deferred income taxes "23,671 "1,6162'Gain on disposals of properties, plants and'equipment"(80,906) "--'Other, net"(33,484) "9870'Changes in current assets and liabilities "50,059 "7230'Net cash provided by operating activities "87,392 "86,956,'Cash flows from investing activities:-'Acquisition of businesses, net of cash"(314,763) "--+'Disposals of investments in Canadian'government securities "-- "5,3144'Purchases of properties, plants and equipment"(124,435)"(58,614)6'Proceeds on disposals of properties, plants and'equipment "85,684 "--,'Net cash used in investing activities"(353,514)"(53,300),'Cash flows from financing activities:#'Proceeds from long-term debt"760,000 "--!'Payments on long-term debt"(433,196)"(9,000)('Payments on short-term borrowings"(4,902) "--'Dividends paid"(11,197)"(10,658)%'Acquisitions of treasury stock "(117)"(4,968)'Other, net "69 "190/'Net cash provided by (used in) financing'activities"310,657"(24,436).'Foreign currency translation adjustment"(1,622) "(482)0'Net increase in cash and cash equivalents "42,913 "8,7387'Cash and cash equivalents at beginning of period "13,388 "8,9351'Cash and cash equivalents at end of period"$ 56,301"$ 17,673B'See accompanying Notes to Consolidated Financial Statements