Greif, Inc. (NYSE:GEF.B) Q2 2016 Earnings Conference Call - Final Transcript

Jun 09, 2016 • 08:30 am ET


Greif, Inc. (NYSE:GEF.B) Q2 2016 Earnings Conference Call - Final Transcript


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Good morning. My name is Sylvie and I will be your conference operator today. At this time, I would like to welcome everyone to the Greif Second Quarter 2016 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks there will be a question-and-answer session. (Operator Instructions). Matt Eichmann, you may begin your conference.

Matt Eichmann

Thank you, Sylvie. Good morning, everyone, and welcome to the question-and-answer portion of Greif's 2016 second quarter earnings conference call. Consistent with Greif's commitment to enhance transparency, yesterday morning we posted a slide presentation and recorded remarks regarding our 2016 second quarter results to our website.

I am now on Slide 2. Responding to your written and live questions this morning are Pete Watson, President and Chief Executive Officer and Larry Hilsheimer, Executive Vice President and Chief Financial Officer.

Please turn to Slide 3. (Forward-looking Cautionary Statements) The format for today's call is to first respond to questions emailed to investors at regarding our second quarter results. We will then address live questions in the same sequence. We appreciate those of you who took the time to review our materials and submitted questions in advance. Similar questions have been combined so we can efficiently address as many topics as possible.

I'd now like to turn the call over to Pete Watson, Greif's President and Chief Executive Officer for a few opening comments.

Pete Watson

Thank you, Matt, and good morning, everyone. We appreciate your interest in Greif. Our Company is committed to customer service excellence, with high expectation to deliver exceptional value to both our customers and our shareholders. Our path to accomplish this is through a disciplined execution of our transformation process.

Highlights of our second quarter include; improved operational performance which expanded our gross profit margin by 90 basis points compared to Q2 2015; free cash flow expansion, which is largely the result of improved operations and greater discipline in managing our working capital; and we have revised our FY16 Class A earnings per share guidance range of $2.20 to $2.46 a share, which reflects our stronger transformational performance.

I'm pleased with our progress and I'm quick to acknowledge that we have more untapped opportunities that remain in each of our strategic business segments. With that, I will turn it back to Matt for questions.