Greif, Inc. Class A (NYSE: GEF) stock fell 7.9% on December 6th, 2018 (as of 10:34 am GMT-5; Source: Google finance) after the company missed the earnings estimate for the fourth quarter of 2018. GEF has declared quarterly cash dividends of $0.44 per share of Class A Common Stock and $0.65 per share of Class B Common Stock. Dividends are payable on January 1, 2019, to stockholders of record at the close of business on December 18, 2018. For the fourth quarter, the Company’s income tax rate was 48.6 percent and its income tax rate excluding the impact of special items was 29.8 percent. Further, during the fourth quarter, gross profit increased by $22.4 million to $204.8 million. Operating profit increased by $41.4 million to $103.3 million and operating profit before special items increased by $24.4 million to $113.3 million. Income tax expense increased by $36.9 million to $42.1 million. Net income of $40.1 million or $0.67 per diluted Class A share increased compared to net income of $33.3 million or $0.57 per diluted Class A share. Net income, excluding the impact of special items, of $64.3 million or $1.08 per diluted Class A share increased compared to net income, excluding the impact of special items, of $57.8 million or $0.98 per diluted Class A share. Net cash provided by operating activities decreased by $2.7 million to $197.2 million
GEF in the fourth quarter of FY 18 has reported the adjusted earnings per share of $1.08, missing the analysts’ estimates for the adjusted earnings per share of $1.18. The company had reported the adjusted revenue of $987.7 million in the fourth quarter of FY 18, missing the analysts’ estimates for revenue of $1.02 billion.
For Rigid Industrial Packaging & Services, net sales decreased by $4.6 million to $657.9 million. Gross profit decreased by $2.2 million to $116.7 million. The decrease in gross profit was primarily due to lower sales, the timing of contractual pass through arrangements and a $1.0 million increase in transportation costs, partially offset by lower manufacturing expenses.
For Paper Packaging & Services, net sales increased by $21.8 million to $244.8 million. The increase was due to higher selling prices resulting from increases in published containerboard pricing, higher volumes and stronger specialty sales. Gross profit increased by $20.8 million to $69.8 million. The increase in gross profit was primarily due to higher containerboard prices and lower old corrugated container input costs, partially offset by a $4.0 million increase in transportation costs. For Flexible Products & Services, net sales increased by $1.3 million to $77.5 million