UPDATE 1-Greif Q2 tops market expectations

Wed Jun 2, 2010 4:57pm EDT

* Q2 adj EPS $0.86 vs est $0.81

* Q2 rev up 29 pct

* Sees 2010 adj EPS $4.05-$4.30

June 2 (Reuters) - Greif Inc (GEF.N), a maker of industrial packaging products, posted better-than-expected quarterly results, helped by a strong performance at two of its segments.

For the second quarter ended April 30, the company posted earnings of $42.6 million, or 73 cents a share, compared with $1.6 million, or 3 cents a share, a year earlier.

Excluding certain restructuring and acquisition-related charges, the company earned 86 cents a share.

Revenue rose 29 percent to $836.6 million.

Analysts were expecting earnings of 81 cents a share, on revenue of $742.8 million, according to Thomson Reuters I/B/E/S.

Sales in the rigid industrial packaging and services segment rose 21 percent to $636.5 million, while flexible products and services segment rose to $50.5 million from $8.4 million.

The company said it continues to expect a gradual improvement in sales volumes and forecast earnings of $4.05 to $4.30 a share, excluding certain items, for 2010. Analysts were expecting earnings of $4.10 a share.

Shares of the company closed at $55.46 Wednesday on the New York Stock Exchange. (Reporting by Amulya Nagaraj in Bangalore; Editing by Maju Samuel)