Greif, Inc. (NYSE:GEF.B) Q1 2018 Earnings Conference Call - Final Transcript

Mar 01, 2018 • 08:30 am ET


Greif, Inc. (NYSE:GEF.B) Q1 2018 Earnings Conference Call - Final Transcript


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Good day. My name is Jack and I will be your conference operator today. At this time, I would like to welcome everyone to the Greif's First Quarter 2018 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, Vice President, Investor Relations and Corporate Communications, you may begin your conference.

Matt Eichmann

Thank you, Jack, and good morning, everyone. Welcome to Greif's first quarter fiscal 2018 earnings conference call. Joining us on the call today are Pete Watson, Greif's President and Chief Executive Officer; and Larry Hilsheimer, Greif's Chief Financial Officer. Pete and Larry will be available to answer questions at the end of today's call.

In accordance with regulation of fair disclosure, I encourage you to ask questions regarding issues you consider material because we are prohibited from discussing significant non-public items with you on an individual basis. Please limit yourself to one question and one follow-up question before returning to the queue to allow others to ask the question.

Please turn to Slide 2. As a reminder, during today's call, we will make forward-looking statements involving plans, expectations, and beliefs related to future events. Actual results could differ materially from those discussed. Additionally, we will be referencing certain non-GAAP financial measures and a reconciliation to the most directly comparable GAAP metric is contained in the appendix of today's presentation.

And now, I turn the presentation over to Pete on Slide 3.

Peter G. Watson

Thank you, Matt, and good morning, everyone. Thank you for your interest in Greif. I'll begin today's call by providing a summary level review of our quarter that we'll discuss in further details as call progresses and our CFO, Larry Hilsheimer will expand on our financial results and discuss our forward-looking outlook. After prepared remarks, we'll conduce a question-and-answer period.

So, we are making steady progress toward our vision to become the best performing customer service company in industrial packaging in the world. Our trailing four quarter basis our customer satisfaction index improved by 3% versus the prior year quarter. We also finalized our latest net promoter score survey during the quarter and details on both the index and the survey can be found in the appendix of today's deck.

Operating profit before special items and Class A earnings per share before special items, each improve versus the prior year quarter. Our financial results were negatively impacted by several headwinds during the quarter. In our Rigid Industrial Packaging business, we experienced lower volumes in December due to a temporary winter slowdown in both North America and EMEA.

Rigid Industrial Packaging is also face rapidly increasing raw material cost and higher transportation costs created a $4.9 million headwind in both our Rigid Industrial Packaging and Paper Packaging segments. Related to the financials, during the quarter we developed a provisional estimate for the impact of the US Tax Cuts and Job Acts, will have on Greif. We expect this legislation