Business

Greif, the US-based packaging group that specialises in steel, fibre and plastic drums, has reported 13% sales growth in the quarter to 31 January, driven by industrial packaging and higher containerboard prices.

Industrial packaging net sales rose by 13% to $671.3m (£339m), while operating profit before special items more than doubled to $78.1m.

Paper packaging net sales rose 9.5% to $168.8m, mainly due to higher containerboard selling prices implemented in the fourth quarter of 2007.

Operating profit in this division was $20.4m, compared with $17.2m in the same quarter in 2007.

Total net sales increased by 13% to $846.3m and operating profit by 73% to $104.6m, including a $29.9m pre-tax net gain following the sale of five underperforming plants in Australia and Zimbabwe.

The firm continued with expansion plans in the quarter by adding seven plants, including five in emerging markets.

Last August, Greif's acquisition of Blagden Packaging Group's large steel drum business in the UK was cleared by the Competition Commission after an inquiry.

Greif increased prices in the first quarter to offset rising raw material costs, particularly for steel and plastic products. It also aims to cut transportation and energy costs.