Greif cuts full year earnings outlook on weak Europe

Wed Aug 15, 2012 8:15am EDT

Aug 15 (Reuters) - Industrial packaging maker Greif Inc cut its full-year earnings forecast after being hit by lower-than-expected volumes and a slow recovery in its European market during the third quarter.

The Delaware, Ohio-based company expects full-year EBITDA (earnings before interest, taxes, depreciation and amortization) of between $445 million and $465 million, down from its earlier forecast of $500 million to $525 million.

"While there are some signs of market firming in Europe, it is occurring at a slower pace than the company expected earlier this year," Greif said in a statement.

It also said that rigid-packaging markets in other regions were being impacted by the slow down.

Shares of the company fell 3 percent to $42.00 in premarket trading on Wednesday. They had closed at $43.31 on Tuesday on the New York Stock Exchange.