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Greif's Q2 hit by Turkish trouble

By Joe Whitworth+

30-May-2014
Last updated on 30-May-2014 at 11:45 GMT

Greif’s Q2 financial results have been negatively impacted due to the occupation of a flexible products manufacturing facility in Hadimkoy, Turkey.

A group of protesters staged an occupation at the plant on February 10.

It lasted 60 days and production downtime was 98 days which disrupted the supply chain, although products were shipped to customers from other locations.

Financial impact was $13m for the second quarter, which included indirect costs estimated to be $7m in lost sales and the increased cost of alternative supply sources plus $3m of direct costs.

The firm said there was also $3m of restructuring charges for the facility in the quarter.

Greif said it expects additional costs during the second half of fiscal 2014, and management believes that appropriate measures have been taken to prevent similar incidents with additional actions being assessed on an ongoing basis.

The company has a conference call June 5 at 10am Eastern Time to review the results.

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