Aug 30, 2007. /Lesprom Network/. Greif net sales increased 27% to $874.2 million in the third quarter of 2007 versus $690.5 million in the third quarter of 2006. Excluding the impact of the Blagden and Delta acquisitions, net sales increased 11%. Operating profit before special items, as defined below, rose to $85.9 million in the third quarter of 2007 from $75.2 million in the third quarter of 2006. Operating profit based on U.S. generally accepted accounting principles (GAAP) was $79.9 million in the third quarter of 2007 compared to $68.5 million in the third quarter of 2006. Net income before special items was $53.2 million in the third quarter of 2007 compared to $42.8 million in the third quarter of 2006. GAAP net income was $48.8 million in the third quarter of 2007 versus $38.3 million in the third quarter of 2006. Diluted earnings per Class A share increased 23% in the third quarter of 2007 to $0.90 before special items compared to $0.73 before special items in the third quarter of 2006. GAAP diluted earnings per Class A share were $0.82 in the third quarter of 2007 and $0.65 in the third quarter of 2006. Michael J. Gasser, chairman, chief executive officer and president, said, "We are pleased with our results for the third quarter. The strong top-line increase benefited from organic growth, especially in the emerging markets, and acquisitions during the past year. We had solid performance across our business portfolio with exceptional results from Industrial Packaging & Services, particularly in Europe. The Greif Business System continues to provide benefits to our existing and newly acquired operations and we are aggressively executing our growth strategy. We exited the third quarter with positive momentum and solid fundamentals." Outlook The company is encouraged by its third quarter and year-to-date fiscal 2007 results. This is attributable to solid operating performance, orderly integration of recent acquisitions, and realization of further benefits from the Greif Business System. There was positive business momentum as the company exited the quarter, which included a recently announced containerboard price increase that is expected to be fully implemented in the first quarter of fiscal 2008. The company is affirming its fiscal 2007 annual earnings guidance, excluding special items, of $3.05 to $3.10 per share for the Class A Common Stock. This increase is approximately 28% to 31% above the company's record fiscal 2006 earnings. Greif is a world leader in industrial packaging products and services. The company produces steel, plastic, fibre, corrugated and multiwall containers, protective packaging and containerboard, and provides blending and packaging services for a wide range of industries. Greif also manages timber properties in North America. The company is strategically positioned in more than 40 countries to serve global as well as regional customers.