Greif, Inc. (NYSE:GEF.B) Q2 2016 Earnings Conference Call - Final Transcript
Jun 09, 2016 • 08:30 am ET
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] Thank you.
Matt Eichmann, you may begin your conference.
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'm 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. This morning's question-and-answer session will contain forward-looking statements. Actual results or outcomes may differ materially from those that may be expressed or implied. Please review our filings with the Securities and Exchange Commission for more information regarding the factors that could cause actual results to differ materially from these projections or expectations. During this question-and-answer session, certain non-GAAP financial measures may be discussed, including those that exclude the impacts of acquisitions and divestitures, special items such as restructuring charges, and impairment charges and acquisition-related costs.
There are reconciliation tables included in our earnings release and the presentation posted on greif.com yesterday. The format for today's call is to first respond to questions emailed to investors at greif.com 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 few opening comments.
Thank you, Matt, and good morning everyone. We appreciate your interest in Greif. Our Company is committed to customer service excellence with high expectation, 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 in greater discipline in managing our working capital and we've revised our fiscal year 2016 Class A earnings per share guidance range up $2.20 to $2.46 a share which reflects our stronger transformational performance. I'm pleased with our progress that I'm quick to acknowledge that we have more untapped opportunities, it remain in each of our strategic business segments.
With that I'll turn it back to Matt for questions.
Thank you, Pete. This first question is actually directed for you and it comes from