Greif 1Q profit plunges on restructuring costs - Business First of Columbus:

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The Delaware-based company told investorss after the markets closed Wednesday that itearned $1.3 or 3 cents a share, in the first quarter ended Jan. 31. That’ws down drastically from profitof $60. million, or $1.03 a share, in the same quarter a year ago. First-quarterf results, the company said, include $29 millionn in pre-tax charges associated with a company-wide initiative to cut costs asdemand slows. That chargd includes $16 million in severance costd as Greifcut 1,375 jobs company-widde and closed 10 plants. Greif’s cost-cutting program, dubber the Greif Business System, was launched in 2003 but picke d up speed last year as economifcconditions weakened.
Those conditions continued to make their markon Greif’sw revenue, which fell 21 percent last quarte r to $666.3 million from $846.3 million a year ago. our first quarter performance is adverselgy affected by seasonal CEO Michael Gasser said ina release. “This was furthert compounded in 2009 by the global economixc downturn that began to impact our companyt in the fourth quarterof 2008.” The companuy said it continues to look at additional ways to cut coste and expects to save about $50 million this fiscal Previous measures include hiring and salary freezesx and the closure of 15 plants in 2008. Greif employs more than 8,600 worldwide.
The company last fiscal year earneed $234.4 million on $3.78 billion in revenue.