Filed Pursuant to Rule 424(b)(4)
Registration No. 333-142203
PROSPECTUS
OFFER TO EXCHANGE ALL
6 3 / 4 % SENIOR NOTES
DUE 2017
OF
GREIF, INC.
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THE EXCHANGE OFFER WILL EXPIRE AT 5:00 PM NEW YORK CITY TIME, ON JUNE 7, 2007, UNLESS EXTENDED |
TERMS OF THE EXCHANGE OFFER:
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We are offering to exchange $300,000,000 aggregate principal amount of registered 6 3 / 4 % Senior Notes for all of the original unregistered 6 3 / 4 % Senior Notes due 2017 that were originally issued on February 9, 2007. |
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The terms of the exchange notes will be identical to the original notes, except for transfer restrictions, the obligation to pay additional interest if we fail to register the exchange notes and complete this exchange offer as required, and registration rights relating to the original notes. |
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You may withdraw tendered outstanding original notes at any time prior to the expiration of the exchange offer. |
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The exchange of outstanding original notes will not be a taxable exchange for U.S. federal income tax purposes. |
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We will not receive any proceeds from the exchange offer. |
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There is no existing market for the exchange notes to be issued, and we do not intend to apply for their listing on any securities exchange or arrange for them to be quoted on any quotation system. |
See the section entitled “Description of Notes” that begins on page 70 for more information about the notes to be issued in this exchange offer.
Each broker-dealer that receives exchange notes for its own account pursuant to the exchange offer must acknowledge that it will deliver a prospectus in connection with any resale of such exchange notes. The letter of transmittal states that by so acknowledging and by delivering a prospectus, a broker-dealer will not be deemed to admit that it is an “underwriter” within the meaning of the Securities Act. This prospectus, as it may be amended or supplemented from time to time, may be used by a broker-dealer in connection with resales of exchange notes received in exchange for outstanding original notes where such outstanding original notes were acquired by such broker-dealer as a result of market-making activities or other trading activities. We have agreed that, starting on the expiration date of the exchange offer and ending on the close of business one year after the expiration date of the exchange offer, we will make this prospectus available to any broker-dealer for use in connection with any such resales. See “Plan of Distribution.”
This investment involves risks. See the section entitled “ Risk Factors ” that begins on page 13 for a discussion of the risks that you should consider prior to tendering your outstanding original notes in the exchange.
Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
This prospectus is dated May 9, 2007.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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Description of Revolving Credit Facility and Other Financing Arrangements |
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IMPORTANT TERMS USED IN THIS PROSPECTUS
Unless the context indicates or otherwise requires, the terms “Greif,” “our Company,” “we,” “us” and “our” as used in this prospectus refer to Greif, Inc. and its consolidated subsidiaries.
INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
We incorporate by reference the documents listed below and any additional documents filed by us with the Securities and Exchange Commission (the “SEC”) under Section 13(a), 13(c), 14 or 15(d) of the Securities Exchange Act, as amended (the “Exchange Act”), to the extent such documents are deemed “filed” for purposes of the Exchange Act, until we complete our offering of the exchange notes:
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our quarterly report on Form 10-Q for the quarter ended January 31, 2007 |
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our current report on Form 8-K as filed with the SEC on March 2, 2007; |
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our current report on Form 8-K as filed with the SEC on February 15, 2007; |
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our definitive proxy statement on Schedule 14A as filed with the SEC on February 2, 2007; |
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our current report on Form 8-K as filed with the SEC on January 25, 2007; and |
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our current report on Form 8-K as filed with the SEC on January 16, 2007. |
Any statement contained in this prospectus or in a document incorporated or deemed to be incorporated by reference herein shall be deemed to be modified or superseded for purposes of this prospectus to the extent that a statement contained in this prospectus or in any other subsequently filed document which also is or is deemed to be incorporated by reference herein modifies or supersedes such statement. Any statement so modified or superseded shall not be deemed, except as so modified or superseded, to constitute a part of this prospectus. You can obtain any of the documents incorporated by reference through us, the SEC or the SEC’s website. Documents we have incorporated by reference are available from us without charge, excluding exhibits to those documents unless we have specifically incorporated by reference such exhibits in this prospectus. Any person, including any beneficial owner, to whom this prospectus is delivered, may obtain the documents we have incorporated by reference in, but not delivered with, this prospectus by requesting them by telephone or in writing at the following address:
Greif, Inc.
425 Winter Road
Delaware, Ohio 43015
Attention: Corporate Secretary
(740) 549-6000
When we refer to this prospectus, we mean not only this prospectus but also any documents which are incorporated or deemed to be incorporated in this prospectus by reference. You should rely only on the information incorporated by reference or provided in this prospectus or any supplement. We have not authorized anyone else to provide you with different information. This prospectus is used to offer and sell the exchange notes referred to in this prospectus, and only under circumstances and in jurisdictions where it is lawful to do so. The information contained in this prospectus is current only as of the date of this prospectus.
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DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS
All statements other than statements of historical facts included or incorporated by reference in this prospectus, including, without limitation, statements regarding our future financial position, business strategy, budgets, projected costs, goals and plans and objectives of management for future operations, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Exchange Act. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “believe,” “continue” or “target” or the negative thereof or variations thereon or similar terminology. Forward-looking statements speak only as the date the statements were made. Although we believe that the expectations reflected in forward-looking statements have a reasonable basis, we can give no assurance that these expectations will prove to be correct. Forward-looking statements are subject to risks and uncertainties that could cause actual events or results to differ materially from those expressed in or implied by the statements. Important factors that could cause actual results to differ materially from our expectations are disclosed under “Risk Factors” and elsewhere in this prospectus, including, without limitation, the factors set forth below and in conjunction with the forward-looking statements included in this document.
Factors that could cause actual results to differ materially from our expectations include the following:
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general economic and business conditions, including a prolonged or substantial economic downturn; |
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foreign currency fluctuations and devaluations; |
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political instability in those foreign countries where we manufacture and sell our products; |
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intense industry competition; |
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changing trends and demands in the industries in which we compete, including industry over-capacity; |
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availability and costs of raw materials for the manufacture of our products, particularly steel and resin; |
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price fluctuations and shortages with respect to our energy needs to produce our products; |
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costs associated with litigation or claims against us pertaining to environmental, safety and health, product liability and other matters; |
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our ability to implement our business and growth strategies and to maintain and enhance our competitive strengths; and |
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other risks detailed from time to time in our reports filed with the SEC. |
All subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements included in this prospectus. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this prospectus may not occur.
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The following summary highlights some of the information from this prospectus and does not contain all the information that is important to you. Before deciding to participate in the exchange offer, you should read the entire prospectus, including the section entitled “Risk Factors” and our consolidated financial statements and the related notes. Some statements in this Prospectus Summary are forward-looking statements. See “Disclosure Regarding Forward-Looking Statements.”
The Company
General
We are a leading global producer of industrial packaging products with manufacturing facilities located in over 40 countries. We offer a comprehensive line of industrial packaging products, such as steel, fibre and plastic drums, intermediate bulk containers, closure systems for industrial packaging products, and polycarbonate water bottles, which are complemented with a variety of value-added services, including blending, packaging, logistics and warehousing. We also produce containerboard, corrugated products and multiwall bags for niche markets in North America. We sell timber to third parties from our timber properties in the southeastern United States that we manage to maximize long-term value. We also sell, from time to time, timberland and special use land, which consists of surplus land, higher and better use (“HBU”), and development land. We also own timber properties in Canada that we do not actively manage. Our customers range from Fortune 500 companies to medium and small-sized companies in a cross section of industries.
In 2003, we began a transformation to become a leaner, more market-focused/performance-driven company, a transformation to what we call the “Greif Business System.” We believe the Greif Business System has and will continue to generate productivity improvements and achieve permanent cost reductions. The Greif Business System continues to focus on opportunities such as improved labor productivity, material yield and other manufacturing efficiencies, along with further plant consolidations. In addition, as part of the Greif Business System, we have implemented a strategic sourcing initiative to more effectively leverage our global spending and lay the foundation for a world-class sourcing and supply chain capability.
For 2006, we had consolidated net sales of $2.6 billion, operating profit of $246.2 million and operating profit, before the impact of restructuring
charges and timberland gains, of $238.1 million, and during this same period, we generated approximately 41% of our consolidated net sales from markets outside of North America. For the three-month period ended January 31, 2007, we had
consolidated net sales of $750.8 million, operating profit of $58.6 million and operating profit, before the impact of restructuring charges and timberland gains, of $60.6 million, and during this same period, we generated approximately 43% of our
consolidated net sales from markets outside of North America. For 2006, our Industrial Packaging & Services segment represented 74% of consolidated net sales, our Paper, Packing & Services segment represented 25% of consolidated
Industrial Packaging & Services
We are a global provider of a full range of industrial packaging products and services. Based on our internal estimates, we believe that we have the following global market positions for our industrial packaging products:
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Product |
Global Market Position | |
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Steel drums |
#1 | |
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Fibre drums |
#1 | |
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Closure systems |
#1 | |
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Plastic drums |
#2 | |
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Intermediate bulk containers |
#4 |
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We seek to provide complete packaging solutions to our customers by offering a comprehensive range of products and services on a global basis. Our full range of packaging products and numerous manufacturing facilities uniquely position us to offer our customers a single source for their packaging needs, respond to global market changes, and capitalize on faster growing markets such as Eastern Europe and Asia. With increasing customer demand for container life-cycle management, we also offer packaging services that include blending, packaging, logistics and warehousing. We sell our products globally to customers in industries such as chemicals, paints and pigments, food and beverage, petroleum, industrial coatings, agricultural, pharmaceutical and mineral, among others.
In this segment for 2006, net sales were $1.9 billion, operating profit was $139.0 million and operating profit, before the impact of restructuring charges, was $163.1 million, and for the three-month period ended January 31, 2007, net sales were $581.7 million, operating profit was $34.9 million and operating profit, before the impact of restructuring charges, was $36.1 million.
Paper, Packaging & Services
We concentrate on providing value-added, higher-margin corrugated products to niche markets complemented by a comprehensive range of packaging services, in comparison to many large paper companies which focus on high-volume, commodity production. We are also a regional producer of containerboard and corrugated sheets. Our highly integrated operations help stabilize the results of this business. In 2006, our corrugated sheet and fibre drum operations consumed an amount of containerboard in excess of 100% of the containerboard tons produced by our two mills.
We sell our containerboard, corrugated sheets and other corrugated products and multiwall bags to customers in North America in the packaging, automotive, food, and building products industries, among others. Our corrugated container products are used to ship such diverse products as home appliances, small machinery, grocery products, building products, automotive components, books and furniture. Our industrial and consumer multiwall bags are used to ship a wide range of industrial and consumer products primarily for the agricultural, chemical, building products and food industries.
In this segment for 2006, net sales were $668.0 million, operating profit was $55.2 million and operating profit, before the impact of restructuring charges, was $64.4 million, and for the three-month period ended January 31, 2007, net sales were $164.8 million, operating profit was $17.2 million and operating profit, before the impact of restructuring charges, was $18.0 million.
Timber
As of January 31, 2007, we owned approximately 265,800 acres of timber properties in the southeastern United States. In the Timber segment, we focus on the active harvesting and regeneration of our United States timber properties to achieve sustainable long-term yields. While timber sales are subject to fluctuations, we seek to maintain a consistent cutting schedule, within the limits of market and weather conditions. We also sell, from time to time, timberland and special use land, which consists of surplus, HBU and development land. As of January 31, 2007, we estimated that there were 62,250 acres in Canada and the United States of special use property, which will be available for sale in the next five to seven years.
In this segment for 2006, net sales were $15.1 million, operating profit was $51.9 million and operating profit, before the impact of restructuring charges and timberland gains, was $10.6 million (including $4.6 million of profits on special use property sales). Timberland gains were $41.3 in 2006. In this segment for the three-month period ended January 31, 2007, net sales were $4.2 million, operating profit was $6.6 million and operating profit before the impact of restructuring charges and timberland gains was $6.5 million (including $4.7 million of profits on special use property sales). Timberland gains were $0.1 million for the three-month period ended January 31, 2007.
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Competitive Strengths
Leading Market Position . We are a leading global producer of a comprehensive line of industrial packaging products. We believe that we are the largest global producer of steel drums, fibre drums, and closure systems, and we hold leading global market positions in the production of plastic drums and intermediate bulk containers.
Global Presence . We have facilities in over 40 countries and generated approximately 41% of our consolidated net sales from markets outside North America for 2006. Our global presence provides us with access to faster growing foreign markets; insulates us from economic downturns in any one country or region; enables us to respond to our customers’ changing needs; offers us the flexibility to shift resources in response to changes in global or regional conditions; and allows us to effectively service multinational customers. Our size and global reach enable us to realize economies of scale and cost savings by consolidating our purchasing, sales and marketing efforts.
Comprehensive Portfolio of Product Lines . We offer a comprehensive portfolio of product lines in our Industrial Packaging & Services and our Paper, Packaging & Services segments, which enables us to offer our customers a single source for their packaging needs and to be responsive to global market changes. We have also developed numerous specialty products and applications for our corrugated products customers in our Paper, Packaging & Services segment. Our ability to tailor our products and services to our customers’ needs allows us to develop strong, long-term customer relationships and enhances profitability.
Experienced Management Team . We have a very experienced and strong management team that has successfully managed our operations during various industry cycles. This experience facilitated our growth in recent years through the acquisition of Van Leer Industrial Packaging and other recent acquisitions and joint ventures and their successful integration into our existing operations. This team has successfully implemented the Greif Business System, which we believe has transformed us into a leaner, more market-focused/performance-driven company. Our management is currently implementing a strategic sourcing initiative to more effectively leverage our global spending and lay the foundation for a world-class sourcing and supply chain capability.
Diverse and Multinational Customer Base . We have developed longstanding relationships with prominent customers such as BASF Corporation, Bayer Corporation, BP p.l.c., Chevron, The Dow Chemical Company, Exxon Mobil Corporation, ICI Industries and Royal Dutch Shell Group. These large multinational corporations represent a range of industries, which we believe creates a strong, stable revenue source for our products and services. Moreover, we do not depend upon any one particular customer, as our ten largest customers accounted for less than 20% of our net sales in 2006.
Significant Operating Leverage . We believe our existing facilities have sufficient capacity to meet future growth in market demand for our products without significant capital expenditures. We believe we are positioned to profitably capitalize on an increase in demand which would result from an economic recovery.
Business Strategy
We plan to build on our strengths by continuing to develop products and services that represent comprehensive packaging solutions for our customers. In addition, we intend to enhance our profitability by continuing to rationalize our operations, capitalize on our global resources and focus on high-margin products and services, as well as making targeted synergistic acquisitions when the opportunity is presented.
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Our business segment strategies are as follows:
Industrial Packaging & Services
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Optimize and institutionalize the Greif Business System in our core businesses to achieve top quartile profitability |
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Pursue value added strategies |
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Continue roll-up of industrial packaging market |
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Pursue geographic and core product opportunities in emerging markets |
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Focus on core business with limited exploration of adjacencies |
Paper, Packaging & Services
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Continue to provide distinctive, value-added corrugated packaging and services |
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Extend product expertise into specialty product offerings |
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Expand sales in multiwall bag business in targeted industry segments |
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Maintain cost-effectiveness and reliability of our containerboard mills and corrugated operations |
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Continue to implement the Greif Business System |
Timber
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Maintain long-term focus on pine timberland |
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Grow future value through intensive management and regeneration |
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Maximize value of timber properties through development or sale of special use land |
Additional Information About Our Company
Greif, Inc. is a Delaware corporation. Our principal executive offices are located at 425 Winter Road, Delaware, Ohio 43015. The telephone number of our executive offices is (740) 549-6000.
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The Exchange Offer
The summary below describes the principal terms of the exchange notes. Certain of the terms and conditions described below are subject to important limitations and exceptions. The “Description of Notes” section of this prospectus contains a more detailed description of the terms and conditions of the notes.
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On February 9, 2007, we issued in a private placement $300.0 million aggregate principal amount of 6 3 / 4 % Senior Notes due 2017 (the “original notes”) to the initial purchasers. The initial purchasers subsequently resold the original notes to qualified institutional buyers pursuant to Rule 144A under the Securities Act and to persons outside the United States under Regulation S. |
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Registration Rights Agreement |
Contemporaneously with the initial sale of the original notes, we entered into a registration rights agreement with the initial purchasers in which we agreed, among other things, to file a registration statement with the SEC and to complete an exchange offer as promptly as possible. This exchange offer is intended to satisfy those rights set forth in the registration rights agreement. After the exchange offer is complete, you will not have any further rights under the registration rights agreement, including the right to require us to register any original notes that you do not exchange or to pay you liquidated damages. |
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The terms of the exchange notes will be identical to the terms of the original notes for which they are being exchanged, except for transfer restrictions, the obligation to pay additional interest if we fail to register the exchange notes and complete this exchange offer as required, and registration rights relating to the original notes. |
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The original notes may be tendered only in $1,000 increments. We will exchange the applicable exchange notes for all original notes that are validly tendered and not withdrawn prior to the expiration of the exchange offer. We will cause the exchange to be effected promptly after the expiration of the exchange offer. |
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The new registered exchange notes will evidence the same debt as the old original notes and will be issued under and entitled to the benefits of the same indenture that governs the old original notes. Holders of the original notes do not have any appraisal or dissenter rights in connection with the exchange offer. Because we have registered the exchange notes, the exchange notes will not be subject to transfer restrictions and holders of original notes will have no registration rights. |
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If You Fail to Exchange Your Outstanding Original Notes |
If you do not exchange your original notes for exchange notes in the exchange offer, you will continue to be subject to the restrictions on transfer provided in the original notes and indenture governing those |
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notes. In general, you may not offer or sell your original notes unless they are registered under the federal securities laws or are sold in a transaction exempt from or not subject to the registration requirements of the federal securities laws and applicable state securities laws. |
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Procedures for Tendering Notes |
If you wish to tender your original notes for exchange notes, you must: |
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• complete and sign the enclosed letter of transmittal by following the related instructions, and |
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send the letter of transmittal, as directed in the instructions, together with any other required documents, to the exchange agent either (1) with the original notes to be tendered, or (2) in compliance with the specified procedures for guaranteed delivery of the original notes. |
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Brokers, dealers, commercial banks, trust companies and other nominees may also effect tenders by book-entry transfer. |
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Please do not send your letter of transmittal or certificates representing your original notes to us. Those documents should be sent only to the exchange agent. Questions regarding how to tender and requests for information should be directed to the exchange agent. See “The Exchange Offer—Exchange Agent.” |
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Resale of the Exchange Notes |
Except as provided below, we believe that the exchange notes may be offered for resale, resold and otherwise transferred by you without compliance with the registration and prospectus delivery provisions of the Securities Act provided that: |
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the exchange notes are being acquired in the ordinary course of business, |
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you are not participating, do not intend to participate, and have no arrangement or understanding with any person to participate in the distribution of the exchange notes issued to you in the exchange offer, |
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you are not an affiliate of ours, |
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you are not a broker-dealer tendering original notes acquired directly from us for your account, and |
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you are not prohibited by law or any policy of the SEC from participating in the exchange offer. |
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Our belief is based on interpretations by the staff of the SEC, as set forth in no-action letters issued to third parties unrelated to us. The staff of the SEC has not considered this exchange offer in the context of a no-action letter, and we cannot assure you that the Staff would make similar determinations with respect to this exchange offer. If any of these conditions are not satisfied (or if our belief is not accurate) and you transfer any exchange notes issued to you in the |
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exchange offer without delivering a resale prospectus meeting the requirements of the Securities Act or without an exemption from registration of your exchange notes from those requirements, you may incur liability under the Securities Act. We will not assume, nor will we indemnify you against, any such liability. |
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Each broker-dealer that receives exchange notes for its own account in exchange for original notes, where the original notes were acquired by such broker-dealer as a result of market-making or other trading activities, must acknowledge that it will deliver a prospectus in connection with any resale of such exchange notes. See “Plan of Distribution.” |
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Record Date |
We mailed this prospectus and the related offer documents to the registered holders of the original notes on May 9, 2007. |
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Expiration Date |
The exchange offer will expire at 5:00 p.m., New York City time, on June 7, 2007, unless we decide to extend the expiration date. |
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Conditions to the Exchange Offer |
The exchange offer is subject to customary conditions, including that the exchange offer not violate applicable law or any applicable interpretation of the staff of the SEC. The exchange offer is not conditioned upon any minimum principal amount of the outstanding notes being tendered. |
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Exchange Agent |
U.S. Bank National Association is serving as exchange agent for the exchange offer. |
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Special Procedures for Beneficial Owners |
If your original notes are registered in the name of a broker, dealer, commercial bank, trust company or other nominee, we urge you to contact that person promptly if you wish to tender your original notes pursuant to this exchange offer. See “The Exchange Offer—Procedures for Tendering.” |
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Withdrawal Rights |
You may withdraw the tender of your original notes at any time before the expiration date of the exchange offer by delivering a written notice of your withdrawal to the exchange agent. You must follow the withdrawal procedures as described under the heading “The Exchange Offer—Withdrawal of Tenders.” |
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Federal Income Tax Considerations |
The exchange of original notes for the exchange notes in the exchange offer should not be a taxable event for U.S. federal income tax purposes. |
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Use of Proceeds |
We will not receive any proceeds from the issuance of the exchange notes pursuant to the exchange offer. We will pay all of our expenses incident to the exchange offer. |
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The Exchange Notes
The form and terms of the exchange notes are the same as the form and terms of the original notes for which they are being exchanged, except that the exchange notes will be registered under the Securities Act. As a result, the exchange notes will not bear legends restricting their transfer and will not have provisions providing for the benefit of the registration rights or the obligation to pay additional interest because of our failure to register the exchange notes and complete this exchange offer as required. The exchange notes represent the same debt as the original notes for which they are being exchanged. Both the original notes and the exchange notes are governed by the same indenture. We use the term “notes” in this prospectus to collectively refer to the original notes and the exchange notes.
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Issuer |
Greif, Inc. |
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Securities Offered |
$300,000,000 aggregate principal amount of 6 3 / 4 % senior notes due 2017. |
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Maturity |
February 1, 2017. |
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Interest Rate |
6 3 / 4 % per year. |
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Interest Payment Dates |
February 1 and August 1, beginning on August 1, 2007. Interest will accrue from February 9, 2007. |
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Ranking |
The exchange notes will be senior unsecured obligations and will rank pari passu to our existing and future senior indebtedness, and senior to all existing and future subordinated indebtedness. As of January 31, 2007, after giving pro forma effect the issuance of the original notes and the application of the net proceeds therefrom, we estimate that we and our subsidiaries would have had $795.3 million of debt, excluding approximately $109.0 million that we would have had available for borrowing under our revolving credit facility. |
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Guarantees |
On the issue date, the exchange notes will not have the benefit of any guarantees from our subsidiaries. If, after the issue date, any of our debt (excluding our revolving credit facility) has the benefit of guarantees from any of our subsidiaries, then we will cause such subsidiaries to unconditionally guarantee the exchange notes on a senior basis. |
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Optional Redemption |
We may redeem some or all of the exchange notes at any time at a price equal to 100% of the principal amount of the exchange notes redeemed plus accrued and unpaid interest to the redemption date plus the applicable premium described in this prospectus. |
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Change of Control Offer |
If we experience a change in control, we must give holders of the exchange notes the opportunity to sell us their notes at 101% of their face amount, plus accrued interest. |
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We might not be able to pay you the required price for exchange notes you present to us at the time of a change of control, because: |
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we might not have enough funds at that time; or |
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the terms of our revolving credit facility may prevent us from paying you. |
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Certain Indenture Provisions |
The indenture governing the exchange notes will contain covenants limiting: |
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our (and most or all of our subsidiaries’) ability to create liens on our assets to secure debt; |
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our (and most or all of our subsidiaries’) ability to enter into sale and leaseback transactions; and |
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our ability to merge or consolidate with another company. |
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Summary Historical Consolidated Financial Data
The following table sets forth summary consolidated financial data and should be read in conjunction with our consolidated financial statements and related notes thereto and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included elsewhere in this prospectus.
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As of and for the years ended October 31, |
As of and for the three
months ended January 31, |
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| 2002 | 2003 | 2004 | 2005 | 2006 | 2006 | 2007 | ||||||||||||||||||||||
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Statement of Operations Data: |
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Net sales |
$ | 1,632,767 | $ | 1,916,441 | $ | 2,209,282 | $ | 2,424,297 | $ | 2,628,475 | $ | 582,316 | $ | 750,759 | ||||||||||||||
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Cost of products sold |
1,296,952 | 1,570,891 | 1,836,432 | 2,033,510 | 2,149,271 | 492,644 | 620,673 | |||||||||||||||||||||
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Gross Profit |
335,815 | 345,550 | 372,850 | 390,787 | 479,204 | 89,672 | 130,086 | |||||||||||||||||||||
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Selling, general and administrative expenses |
250,756 | 228,120 | 218,821 | 224,729 | 259,122 | 59,454 | 74,609 | |||||||||||||||||||||
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Restructuring charges |
2,824 | 60,743 | 54,118 | 35,736 | 33,238 | 5,468 | 2,037 | |||||||||||||||||||||
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Gain on sale of timberland |
12,122 | 5,577 | 7,514 | 56,268 | 41,302 | 31,569 | 62 | |||||||||||||||||||||
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Gain on disposal of properties, plants and equipment, net |
6,800 | 3,092 | 1,281 | 5,343 | 18,017 | 1,642 | 5,139 | |||||||||||||||||||||
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Operating Profit |
101,157 | 65,356 | 108,706 | |||||||||||||||||||||||||