/2H7 d 1$&%*7'GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES,'CONSOLIDATED STATEMENTS OF OPERATIONS'(Unaudited)7'(Dollars in thousands, except per share amounts) "Three "Three "Nine "Nine " months ended" months ended" months ended"months ended"July 31,"July 31,"July 31,"July 31, "1999 "1998 "1999 "1998 "(As Restated) "(As Restated) 'Net sales "$199,988 "$218,631 "$572,563 "$579,597 'Other income: 'Gain on timber and'timberland sales "5,195 "10,934 "12,983 "17,103'Interest and other "3,622 "974 "9,460 "5,800"208,805"230,539"595,006"602,500'Costs and expenses'(including depreciation'of $28,857 in 1999 and'$28,361 in 1998):'Cost of products sold" 163,826"180,249"471,906"472,058'Selling, general and'administrative "26,563 "24,248 "80,613 "65,844'Restructuring charge "-- "27,461 "-- "27,461'Interest "4,157 "4,478 "11,860 "7,909"194,546"236,436"564,379"573,272'Income (loss) before'income taxes and'equity in earnings 'of affiliates  "14,259 "(5,897)  "30,627  "29,228!'Income taxes !"5,702!"(1,430) !"12,251 !"11,487#'Income (loss) before$'equity in earnings of%'affiliates %"8,557%"(4,467) %"18,376 %"17,741&'Equity in earnings of''affiliates '"2,349 '"760 '"7,072 '"3,346)'Net income (loss))"$ 10,906)"$ (3,707))"$ 25,448)"$ 21,087+'Basic and diluted,'earnings per share:-'Class A Common Stock-"$ 0.38-"$ (0.13)-"$ 0.88-"$ 0.73.'Class B Common Stock."$ 0.57."$ (0.19)."$ 1.32."$ 1.09B0'See accompanying Notes to Consolidated Financial Statements73'GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES"4'CONSOLIDATED BALANCE SHEETS5'(Dollars in thousands) 6'ASSETS8"(Unaudited)9"July 31,9"October 31, :"1999 :"1998;"(As Restated)='CURRENT ASSETS >'Cash and cash equivalents>"$ 25,716>"$ 41,329%?'Canadian government securities ?"5,219 ?"6,654"@'Trade accounts receivable -#A'less allowance of $1,298 for&B'doubtful items ($2,918 in 1998)B"105,622B"113,931C'Inventories C"52,280 C"64,851D'Deferred tax asset D"13,793 D"13,355E'Net assets held for sale E"11,954 E"1,760!F'Prepaid expenses and other F"14,295 F"16,626G'Total current assetsG"228,879G"258,506I'LONG-TERM ASSETS#J'Goodwill - less amortizationJ"147,991J"123,677K'Investment in affiliatesK"121,193 K"49,059L'Other long-term assets L"27,848 L"27,393M"297,032M"200,1291O'PROPERTIES, PLANTS AND EQUIPMENT - at cost)P'Timber properties - less depletion P"9,074 P"9,067 Q'Land Q"12,498 Q"17,170R'BuildingsR"124,594R"157,501S'Machinery and equipmentS"490,275S"505,236#T'Capital projects in progress T"36,430 T"17,045U'Accumulated depreciationU"(275,217)U"(286,234)V"397,654V"419,785X"$923,565X"$878,420+Z'LIABILITIES AND SHAREHOLDERS' EQUITY\'CURRENT LIABILITIES]'Accounts payable]"$ 63,525]"$ 45,361$^'Accrued payrolls and employee_'benefits _"7,391 _"9,859`'Restructuring reserves `"15,253 `"32,411 a'Other current liabilities a"17,629 a"10,604 b'Total current liabilitiesb"103,798 b"98,235d'LONG-TERM LIABILITIESe'Long-term obligationse"268,000e"235,000f'Deferred tax liability f"38,057 f"42,299'g'Postretirement benefit liability g"19,824 g"25,554"h'Other long-term liabilities h"20,233 h"17,230"i'Total long-term liabilitiesi"346,114i"320,083$k'SHAREHOLDERS' EQUITY (Note 2)'l'Capital stock, without par value l"9,936 l"9,936m'Class A Common Stock:$n'Authorized 32,000,000 shares; o'issued 21,140,960 shares;$p'outstanding 10,814,472 sharesq'(10,909,672 in 1998)r'Class B Common Stock:'s'Authorized and issued 17,280,000t'shares;$u'outstanding 11,998,793 sharesv'(12,001,793 in 1998)w'Treasury stock, at costw"(44,448)w"(41,858)'x'Class A Common Stock: 10,326,488"y'shares (10,231,288 in 1998)'z'Class B Common Stock: 5,281,207!{'shares (5,278,207 in 1998)|'Retained earnings|"515,232|"500,068(}'Cumulative translation adjustment}"(7,067)}"(8,044)~"473,653~"460,102"$923,565"$878,420B'See accompanying Notes to Consolidated Financial Statements7'GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES,'CONSOLIDATED STATEMENTS OF CASH FLOWS'(Unaudited)'(Dollars in thousands))'For the nine months ended July 31, "1999 "1998"(As Restated),'Cash flows from operating activities:'Net income"$ 25,448"$ 21,087#'Adjustments to reconcile net"'income to net cash provided'by operating activities:'Depreciation, depletion'and amortization "32,794 "31,283''Equity in earnings of affiliates"(7,072)"(3,346)'Deferred income taxes"(2,607) "7,478'Other - net "3,681"(8,517)$'Changes in current assets and"'liabilities, net of effects'from acquisitions and'dispositions "15,905 "17,700%'Net cash provided by operating'activities "68,149 "65,685,'Cash flows from investing activities:%'Acquisitions and dispositions,'net of cash"(71,811)"(188,174)+'Disposals of investments in Canadian'government securities "1,435 "576&'Purchases of properties, plants'and equipment"(32,260)"(25,911),'Net cash used by investing activities"(102,636)"(213,509),'Cash flows from financing activities:!'Proceeds on long-term debt "54,500"271,000!'Payments on long-term debt"(23,528)"(62,815)'Dividends paid"(10,284)"(10,287)'Other - net"(2,590) "183%'Net cash provided by financing'activities "18,098"198,081.'Foreign currency translation adjustment "776"(4,534)/'Net (decrease) increase in cash and cash'equivalents"(15,613) "45,7230'Cash and cash equivalents at beginning of 'period "41,329 "17,719*'Cash and cash equivalents at end of 'period"$ 25,716"$ 63,442