<PAGE>

                                 UNITED STATES
                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C.  20549




                                   FORM 10-Q

            [X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d)
                    OF THE SECURITIES EXCHANGE ACT OF 1934
                  For the quarterly period ended July 4, 1999


                                      OR

            [ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                    OF THE SECURITIES EXCHANGE ACT OF 1934



                        Commission File Number 0-26178




                               BWAY Corporation

            (Exact name of registrant as specified in its charter)




          DELAWARE                                36-3624491
(State or other jurisdiction of      (I.R.S. Employer Identification No.)
incorporation or organization)



                         8607 Roberts Drive, Suite 250
                          Atlanta, Georgia 30350-2322
                   (Address of principal executive offices)
                                  (Zip Code)



                                (770) 645-4800
             (Registrant's telephone number, including area code)



                              __________________



Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the Registrant
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.


Yes  X   No
    ---     ---


There were 9,315,318 shares of Common Stock ($.01 par value) outstanding as of
August 11, 1999.
<PAGE>

                               BWAY Corporation
                         QUARTERLY REPORT ON FORM 10-Q
                             For the quarter ended
                                 July 4, 1999



                                     INDEX

                                                               Page Number

PART I.  FINANCIAL INFORMATION

Item 1.  Financial Statements

         Consolidated Balance Sheets at July 4, 1999
          and September 27, 1998  (Unaudited)                        3

         Consolidated Statements of Income for the three month
          and nine month periods ended July 4, 1999 and
          June 28, 1998  (Unaudited)                                 4

         Consolidated Statements of Cash Flows for the nine
          month periods ended July 4, 1999 and June 28, 1998
          (Unaudited)                                                5-6

         Notes to Consolidated Financial Statements (Unaudited)      7-11


Item 2.  Management's Discussion and Analysis of Financial
          Condition and Results of Operations                       12-16


Item 3.  Quantitative and Qualitative Disclosures About
          Market Risk                                               17


PART II. OTHER INFORMATION

Item 1.  Legal Proceedings                                          18

Item 2.  Changes in Securities and Use of Proceeds                  18

Item 3.  Defaults upon Senior Securities                            18

Item 4.  Submission of Matters to a Vote of Security Holders        18

Item 5.  Other Information                                          18

Item 6.  Exhibits and Reports on Form 8-K                           18


                                       2
<PAGE>

Part I.     Financial Information
  Item 1.     Financial Statements

                               BWAY  CORPORATION
                               AND SUBSIDIARIES
                          CONSOLIDATED BALANCE SHEETS
                (In Thousands, Except Share and per Share Data)
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------
<S>                                                                                   <C>            <C>
                                                                                       July 4,       September 27,
ASSETS                                                                                  1999             1998
                                                                                     (UNAUDITED)
  CURRENT ASSETS:
     Cash and cash equivalents                                                        $  4,185           $  2,303
     Accounts receivable, net of allowance of $586 at
        July 4, 1999 and $533 at September 27, 1998                                     55,764             35,574
     Inventories                                                                        49,628             39,723
     Deferred tax asset                                                                  8,865              4,251
     Assets held for sale                                                               10,462              5,377
     Other current assets                                                                2,716              4,099
                                                                                      --------           --------
          Total Current Assets                                                         131,620             91,327
                                                                                      --------           --------

  PROPERTY, PLANT AND EQUIPMENT --  Net                                                144,117            133,960
                                                                                      --------           --------

  OTHER ASSETS:
     Intangible assets, net                                                             88,827             82,279
     Deferred financing costs, net                                                       3,917              4,298
     Other assets                                                                          400              1,847
                                                                                      --------           --------
          Total Other Assets                                                            93,144             88,424
                                                                                      --------           --------
                                                                                      $368,881           $313,711
                                                                                      ========           ========

LIABILITIES AND STOCKHOLDERS' EQUITY

  CURRENT LIABILITIES:
     Accounts payable                                                                 $ 58,133           $ 57,095
     Accrued salaries & wages                                                            7,994              9,740
     Other current liabilities                                                          18,951             17,124
     Accrued rebates                                                                     6,543              5,959
     Current maturities of long-term debt                                                   34                672
                                                                                      --------           --------
          Total Current Liabilities                                                     91,655             90,590
                                                                                      --------           --------

  LONG-TERM DEBT                                                                       168,300            121,600

  LONG-TERM LIABILITIES:
     Deferred income taxes                                                              16,408             15,118
     Other long-term liabilities                                                         9,474              9,215
                                                                                      --------           --------
          Total Long Term Liabilities                                                   25,882             24,333
                                                                                      --------           --------

  COMMITMENTS AND CONTINGENCIES

  STOCKHOLDERS' EQUITY:
     Preferred stock, $.01 par value, authorized 5,000,000 shares                           --                 --
     Common stock, $.01 par value; authorized 24,000,000 shares,
       Issued 9,851,002 (July 4, 1999 and
       September 27, 1998)                                                                  99                 99
     Additional paid-in capital                                                         37,240             37,395
     Retained earnings                                                                  56,759             50,192
                                                                                      --------           --------
                                                                                        94,098             87,686
     Less treasury stock, at cost, 535,684 and 490,384
       (July 4, 1999 and September 27, 1998)                                           (11,054)           (10,498)
                                                                                      --------           --------
          Total Stockholders' Equity                                                    83,044             77,188
                                                                                      --------           --------
                                                                                      $368,881           $313,711
                                                                                      ========           ========
</TABLE>
   See notes to consolidated financial statements.

                                       3
<PAGE>

                               BWAY CORPORATION
                               AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
                     (In Thousands, Except per Share Data)
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------
                                                                Three Months Ended      Nine Months Ended
                                                              ----------------------    ------------------
                                                               July 4,     June 28,    July 4,    June 28,
                                                                1999         1998       1999       1998
<S>                                                           <C>         <C>         <C>         <C>

NET SALES                                                      $123,109    $107,010    $349,631   $300,289

COSTS, EXPENSES AND OTHER:

  Cost of products sold (excluding
    depreciation and amortization)                              106,857      87,696     298,662    248,147

  Depreciation and amortization                                   4,456       3,983      13,680     10,868

  Selling and administrative expense                              5,053       6,774      15,381     16,690

  Interest expense, net                                           3,549       3,323      10,738     10,312

  Gain on curtailment of postretirement medical benefits             --          --          --     (1,547)

  Provision for restructuring                                        --      11,532          --     11,532

  Other, net                                                        (69)        (31)       (251)        55
                                                               --------    --------    --------   --------

     Total costs, expenses and other                            119,846     113,277     338,210    296,057
                                                               --------    --------    --------   --------

INCOME BEFORE INCOME TAXES AND
  CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING                       3,263      (6,267)     11,421      4,232

PROVISION (BENEFIT) FOR INCOME TAXES                              1,387      (2,241)      4,854      2,116
                                                               --------    --------    --------   --------

INCOME (LOSS) BEFORE CUMULATIVE EFFECT
  OF CHANGE IN ACCOUNTING                                         1,876      (4,026)      6,567      2,116

CUMULATIVE EFFECT OF CHANGE IN
  ACCOUNTING FOR SYSTEMS DEVELOPMENT
  COSTS-NET OF RELATED TAX BENEFIT OF $823                           --          --          --     (1,161)
                                                               --------    --------    --------   --------

NET INCOME (LOSS)                                              $  1,876    $ (4,026)   $  6,567   $    955
                                                               ========    ========    ========   ========

</TABLE>
EARNINGS PER SHARE BEFORE CUMULATIVE ACCOUNTING CHANGE:
-------------------------------------------------------
<TABLE>
<CAPTION>

<S>                                                              <C>       <C>         <C>        <C>
Basic Earnings (Loss) Per Common Share                         $   0.20    $  (0.42)   $   0.70   $   0.22
                                                               ========    ========    ========   ========
Weighted Average Basic Common Shares Outstanding                  9,325       9,474       9,325      9,567
                                                               ========    ========    ========   ========

Diluted Earnings (Loss) Per Common Share                       $   0.20    $  (0.40)   $   0.69   $   0.21
                                                               ========    ========    ========   ========
Weighted Average Diluted Common Shares Outstanding                9,476       9,969       9,494     10,040
                                                               ========    ========    ========   ========
</TABLE>
EARNINGS PER SHARE AFTER CUMULATIVE ACCOUNTING CHANGE:
------------------------------------------------------
<TABLE>
<CAPTION>

<S>                                                   <C>     <C>       <C>     <C>
Basic Earnings (Loss) Per Common Share                         $   0.20    $ ( 0.42)   $   0.70   $   0.10
                                                               ========    ========    ========   ========
Weighted Average Basic Common Shares Outstanding                  9,325       9,474       9,325      9,567
                                                               ========    ========    ========   ========

Diluted Earnings (Loss) Per Common Share                       $   0.20    $  (0.40)   $   0.69   $   0.10
                                                               ========    ========    ========   ========
Weighted Average Diluted Common Shares Outstanding                9,476       9,969       9,494     10,040
                                                               ========    ========    ========   ========
</TABLE>
See notes to consolidated financial statements.

                                       4
<PAGE>

                                BWAY CORPORATION
                                AND SUBSIDIARIES
               CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
                                 (In Thousands)
<TABLE>
<CAPTION>
<S>                                                                                     <C>                    <C>
--------------------------------------------------------------------------------------------------------------------------
                                                                                                Nine Months Ended
                                                                                        ----------------------------------
                                                                                        July 4,                   June 28,
                                                                                         1999                       1998
OPERATING ACTIVITIES:
Net income                                                                             $  6,567                  $    955
Adjustments to reconcile net income to net cash provided by (used in)
Operating activities:
  Depreciation                                                                           10,777                     8,166
  Amortization of intangibles                                                             2,903                     2,702
  Amortization of deferred financing costs                                                  558                       551
  Curtailment gain                                                                           --                    (1,547)
  Cumulative effect of change in accounting principle (net)                                  --                     1,161
  Restructuring charge                                                                       --                    11,532
  Provision for doubtful accounts                                                            40                         4
  (Gain) / Loss on disposition of property, plant and equipment                            (186)                       90
  Changes in assets and liabilities, net of effects of business
   acquisitions:
    Accounts receivable                                                                  (9,493)                   (4,990)
    Inventories                                                                          (5,524)                   (5,070)
    Other assets                                                                          3,774                      (205)
    Accounts payable                                                                      9,377                    (6,290)
    Accrued liabilities                                                                  (6,273)                   (6,109)
    Income taxes, net                                                                     5,293                    (2,299)
                                                                                       --------                  --------
        Net cash provided by (used in) operating activities                              17,813                    (1,349)
                                                                                       --------                  --------

INVESTING ACTIVITIES:
   Capital expenditures                                                                 (21,744)                  (27,255)
   Proceeds from disposition of property, plant and equipment                             4,420                       382
   Acquisitions, net of cash acquired                                                   (30,187)                       --
   Assets held for sale                                                                  (4,020)                       --
   Other                                                                                      -                       756
                                                                                       --------                  --------
       Net cash used in investing activities                                            (51,531)                  (26,117)
                                                                                       --------                  --------

FINANCING ACTIVITIES:
   Net borrowings under bank credit agreement                                            46,700                    33,400
   Repayments on long-term debt                                                            (638)                   (1,296)
   Increase (decrease) in unpresented bank drafts                                        (9,574)                    2,329
   Net purchases of treasury stock                                                         (711)                   (9,175)
   Financing costs incurred                                                                (177)                     (100)
   Other                                                                                     --                     1,284
                                                                                       --------                  --------
      Net cash provided by financing activities                                          35,600                    26,442
                                                                                       --------                  --------
                                                                                          1,882                    (1,024)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                                            2,303                     1,374
                                                                                       --------                  --------

                                                                                       $  4,185                  $    350
CASH AND CASH EQUIVALENTS, END OF PERIOD                                               ========                  ========
                                                                                                               (Continued)
</TABLE>


                                       5
<PAGE>

                                BWAY CORPORATION
                                AND SUBSIDIARIES
               CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
                                 (In Thousands)
<TABLE>
<CAPTION>
                                                                                                Nine Months Ended
                                                                                      -----------------------------------
                                                                                       July 4,                   June 28,
                                                                                        1999                       1998
<S>                                                                                   <C>                       <C>
   SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
     Cash paid during the period for:
       Interest                                                                       $ 13,778                   $13,187
                                                                                      --------                   -------
       Income taxes                                                                   $   (437)                  $ 4,415
                                                                                      ========                   =======
   NONCASH INVESTING AND FINANCING ACTIVITIES:
     Amounts owed for capital expenditures
                                                                                      $      0                   $ 1,048
                                                                                      ========                   =======
   Details of businesses acquired were as follows:
   ----------------------------------------------
   Fair value of assets acquired                                                      $ 51,596
   Liabilities assumed                                                                 (21,409)
                                                                                      --------
   Net cash paid for acquisitions                                                     $ 30,187
                                                                                      --------
</TABLE>


See notes to consolidated financial statements.

                                       6
<PAGE>

                                BWAY CORPORATION

                                AND SUBSIDIARIES

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
--------------------------------------------------------------------------------

1.  GENERAL

 The accompanying consolidated financial statements have been prepared by the
 Company without audit.  Certain information and footnote disclosures, including
 significant accounting policies, normally included in financial statements
 prepared in accordance with generally accepted accounting principles have been
 condensed or omitted.  The consolidated financial statements as of July 4, 1999
 and September 27, 1998 and for the three and nine month periods ended July 4,
 1999 and June 28, 1998 include all normal recurring adjustments necessary for a
 fair presentation of the financial position and results of operations for these
 periods. Operating results for the nine months ended July 4, 1999 are not
 necessarily indicative of the results that may be expected for the entire year.
 It is suggested that these unaudited consolidated financial statements and the
 accompanying notes are read in conjunction with the consolidated financial
 statements and the notes thereto included in the Company's Annual Report on
 Form 10-K.

 The Company operates on a 52/53-week fiscal year ending on the Sunday closest
 to September 30 of the applicable year.  The first three quarterly fiscal
 periods end on the Sunday closest to December 31, March 31 or June 30 of the
 applicable quarter.


2. INVENTORIES

 Inventories are carried at the lower of cost or market, with cost determined
 under the last-in, first-out (LIFO) method of inventory valuation and are
 summarized as follows:

<TABLE>
<CAPTION>
                              July 4,   September 27,
                               1999          1998
<S>                          <C>        <C>
Inventories at FIFO Cost:
 Raw materials                $ 7,908         $ 6,555
 Work-in-process               31,605          22,695
 Finished goods                10,338          10,696
                              -------         -------
                              $49,851         $39,946
Reserve for LIFO                 (223)           (223)
                              -------         -------
                              $49,628         $39,723
                              =======         =======
</TABLE>

3. EARNINGS PER COMMON SHARE

 Earnings per common share are based on the weighted average number of common
 shares outstanding during each period presented, including vested and unvested
 shares issued under the Company's previous management stock purchase plan and
 the dilutive effect of the shares from the Current Plan.  Weighted average
 basic common shares outstanding for the third quarter of fiscal 1999 and 1998
 were 9.3 million and 9.5 million, respectively.  Weighted average diluted
 common shares outstanding for the third quarter of fiscal 1999 and 1998 were
 9.5 million and 10.0 million, respectively.


4.   ACQUISITIONS

  U.S. Can Metal Services Operations

 On November 9, 1998, BWAY acquired substantially all of the assets of  the
 United States Can Company's metal services operations for approximately $31
 million plus the assumption of certain liabilities, including trade payables,
 certain employee liabilities, and leases (the "U.S. Can Acquisition").  The
 purchase price was subject to an adjustment based upon the change in working
 capital from July 31, 1998 to November 9, 1998.  A portion of the working
 capital adjustment was settled during the second quarter of fiscal 1999.  This
 adjustment totaled $1.5 million and was comprised of uncollectable accounts
 receivable for which BWAY was reimbursed.   The acquisition included three
 operating plants and one non-operating plant. The acquired facilities operate
 two different businesses, coating and lithography which is part of the
 Company's growth strategy, and tinplate metal services which is not a core
 business of the Company.  Subsequent to the acquisition, the Company signed a
 binding letter of intent to sell the tinplate services business.  In
 anticipation of the sale, the Company closed a  tinplate metal services
 facility in Brookfield, Ohio.  As part of the Company's 3R initiative to
 rationalize, reengineer and recapitalize operations, the Company has announced
 plans to close an additional acquired facility.

                                       7
<PAGE>

 The purchase method of accounting was used to establish and record a new cost
 basis for the assets acquired and liabilities assumed.  The allocation of the
 purchase price and acquisition costs to the assets acquired and liabilities
 assumed is preliminary at July 4, 1999, and is subject to change pending
 finalization of appraisals and other studies of fair value and finalization of
 management's plans which may result in the recording of additional liabilities
 as part of the allocation of purchase price.  The operating results for the
 U.S. Can Acquisition have been included in the Company's consolidated financial
 statements since the date of acquisition except for the tinplate services
 business which is being sold as described below.  At July 4, 1999, the excess
 purchase price over fair market value of net identifiable assets acquired was
 in aggregate $9.4 million.

 On November 17, 1998, the Company signed a binding letter of intent to sell the
 acquired tinplate services business.  The tinplate services business primarily
 purchases, processes and sells nonprime steel to third party customers.  The
 Company expects to finalize the sale of the tinplate services business by the
 end of fiscal 1999.  The Company has excluded from operations losses of  $1.1
 million, including interest expense of  $0.2 million, from the results of
 operations for the quarter ended July 4, 1999.  The net assets to be disposed
 of  $1.9 million are included in assets held for sale on the balance sheet.

 Management has committed to a plan to exit certain activities of the acquired
 companies and integrate acquired assets and businesses with BWAY facilities.
 In connection with recording the purchase, the Company established a
 reorganization liability of approximately $2.9 million, which is classified in
 other current liabilities.  The liability represents the direct costs expected
 to be incurred, which have no future economic benefit to the Company.  These
 costs include charges relating to the closing of manufacturing facilities and
 severance costs.  Finalization of the Company's integration plan may result in
 further adjustments to this reserve.

 The following pro forma results assume that the U.S. Can Acquisition, excluding
 tinplate services, occurred at the beginning of the fiscal year ended September
 27, 1998 after giving effect to certain pro forma adjustments, including an
 adjustment to reflect the amortization of cost in excess of the net assets
 acquired, increased interest expense and the estimated related income tax
 effects.

<TABLE>
<CAPTION>


                                               Three Months Ended                  Nine Months Ended
                                          July 4, 1999     June 28, 1998     July 4, 1999     June 28, 1998
                                                     (In thousands, except per share amounts)
---------------------------------------------------------------------------------------------------------------
<S>                                       <C>              <C>               <C>              <C>
Net sales                                      $132,159       $116,680            $358,681       $328,746
Net income (Loss)                              $  1,490       $ (3,764)           $  6,222       $  1,372
Earnings per common share:
       Net income (Loss) - Basic               $   0.16       $ ( 0.40)           $   0.67       $   0.14
       Net income (Loss)- Diluted              $   0.16       $ ( 0.38)           $   0.66       $   0.14
---------------------------------------------------------------------------------------------------------------
</TABLE>



 The pro forma financial information is not necessarily indicative of the
operating results that would have occurred had the acquisition been consummated
as of the beginning of fiscal 1998, nor is it necessarily indicative of future
operating results.


5.  LONG-TERM DEBT

On November 2, 1998, the Company and its lenders executed an amendment to the
Credit Agreement, which modified certain restrictive financial covenants and
provided greater flexibility with respect to certain investments in joint
ventures. Additionally, the Company exercised its option to increase the
available borrowing limit to $125 million. The Credit Agreement currently
provides that the Company and its subsidiaries can borrow up to $125 million,
and gives the Company an option to increase its borrowing limit by an additional
$25 million, provided certain conditions are met. Interest rates under the
Credit Agreement are based on rate margins ("Rate Margin") for either the prime
rate as announced by Bank of America (formerly NationsBank, N.A.) from time to
time or LIBOR, at the option of the Company.  The applicable Rate Margin is
determined on a quarterly basis by a review of the Company's leverage ratio.
Loans under the Credit Agreement are unsecured and can be repaid at the option
of the Company without premium or penalty.  The Credit Agreement is subject to
certain restrictive covenants, including financial covenants, which require the
Company to maintain a certain minimum level of net worth and certain leverage
ratios.  In addition, the Company is restricted in its ability to pay dividends
and make other restricted payments.

 At July 4, 1999, the Company was restricted in its ability to pay dividends and
make other restricted payments in an amount greater than approximately $12.2
million.  The Company's subsidiaries are restricted in their ability to transfer
funds to the Company, except for funds to be used to effect approved
acquisitions, pay dividends in specified amounts, reimburse the

                                       8
<PAGE>

Company for operating and other expenditures made on behalf of the subsidiaries
and repay permitted intercompany indebtedness.

BWAY is a holding company with no independent operations although it incurs
expenses on behalf of its operating subsidiaries. BWAY has no significant assets
other than the common stock of its subsidiaries.  The notes are fully and
unconditionally guaranteed on a joint and several basis by certain of the
Company's direct and indirect subsidiaries.  The subsidiary guarantors are
wholly owned by BWAY and constitute all of the direct and indirect subsidiaries
of BWAY except for four subsidiaries that are individually, and in the
aggregate, inconsequential.  Separate financial statements of the subsidiary
guarantors are not presented because management has determined that they would
not be material to investors.


6.  ACCOUNTING CHANGE

On November 20, 1997 the FASB's Emerging Issues Task Force (EITF) issued a
consensus ruling, which affects the accounting treatment of certain information
systems and process reengineering costs.  The Company is involved in a business
information systems and process reengineering project that is subject to this
pronouncement.  Based on the EITF consensus, $2.0 million before tax of the
previously capitalized costs associated with this project was expensed in the
first fiscal quarter of 1998, as a change in accounting method.  A one-time
charge of $1.2 million after tax or $0.11 per diluted share for the cumulative
effect of this new accounting interpretation for business information systems
and process reengineering activities reduced quarterly net earnings to $1.0
million or $0.10 per fully diluted share.



7.   RESTRUCTURING AND IMPAIRMENT OF ASSETS

On June 3, 1998, the Board of Directors of the Company approved a restructuring
plan designed to improve operating efficiencies. The plan involves the
rationalization of three existing facilities, the shift of related production to
other facilities and the elimination of an internal trucking fleet. The
facilities scheduled for closure in fiscal 1999 include Solon (Ohio), Farmer's
Branch (Texas) and Northeast Tin Plate (New Jersey).

The 1998 restructuring and impairment charge totaled $11.5 million and
consisted of the following:  $7.8 million related to the closure of the plants
and transportation department and $3.7 million related to other asset
impairments.  The $7.8 million related to the plant and transportation
department closure includes $2.1 million for severance costs, $2.2 million for
other facility closure costs and $3.5 million for asset impairments related to
the plant shut-downs. In connection with the closure of the plants announced in
1998, $1.2 million of real property is held for sale.  (See Note 8. )

During fiscal 1998, the Company charged approximately $1.7 million against the
restructuring  reserve for severance benefits. In connection with the plant
closures, the plan was for the termination of 210 employees.  As of  January 3,
1999, all employees were terminated.

Through the third quarter of fiscal 1999, the Company has charged approximately
$0.4 million for facility closure costs and $1.9 million for asset impairments
against the 1998 restructuring reserve.


8.  ASSETS HELD FOR SALE

In connection with the closure of the plants announced in 1998, $1.2 million of
real property is held for sale.   This property includes land of $0.2 million
and $1.0 million of buildings, which are held for sale at July 4, 1999.   During
the second quarter of fiscal 1999, the Company sold the Solon, Ohio facility for
$4.5 million resulting in a net gain of $0.2 million.

Additionally, the Company has entered into negotiations and is considering its
options regarding a sale-leaseback transaction for its Cincinnati, Ohio
facility.  The Company plans to complete this transaction in the fourth quarter
of fiscal 1999; therefore, the Company has reclassified the net book value of
approximately $6.0 million for the land and building to assets held for sale.


9.   CONTINGENCIES

  Environmental

The Company is subject to a broad range of federal, state and local
environmental and workplace health and safety

                                       9
<PAGE>

requirements, including those governing discharges to air and water, the
handling and disposal of solid and hazardous wastes, and the remediation of
contamination associated with the releases of hazardous substances. The Company
believes that it is in substantial compliance with all material environmental,
health and safety requirements. In the course of its operations, the Company
handles hazardous substances. As is the case with any industrial operation, if a
release of hazardous substances occurs on or from the Company's facilities or at
offsite waste disposal sites, the Company may be required to remedy such
release. There are no material capital expenditures relating to environmental
expected for fiscal 1999 or fiscal 2000.

Pursuant to the terms of the Company's 1989 acquisition of certain facilities
from Owens-Illinois, its fiscal 1996 acquisition of facilities from Van Dorn
Company ("Van Dorn"), the its fiscal 1996 acquisition of the stock of Milton Can
Company, Inc. (n/k/a Brockway Standard (New Jersey), Inc.) (the "BSNJ
Acquisition"), its fiscal 1997 acquisition (the "MCC Acquisition") of the
aerosol can business of Ball Metal Food Container Corporation ("BMFCC"), and the
fiscal 1999 U.S. Can Acquisition, the sellers in each transaction are obligated,
subject to certain limitations, to indemnify the Company for certain
environmental matters related to the facilities or businesses they conveyed.
Notwithstanding such indemnifications, the Company could bear liability in the
first instance for indemnified environmental matters, subject to obtaining
reimbursement.  There can be no assurance that the Company will receive
reimbursement with respect to the indemnified environmental matters.

Environmental investigations voluntarily conducted by the Company at its
Homerville, Georgia facility in 1993 and 1994 detected certain conditions of
soil and groundwater contamination, that management believes predated the
Company's 1989 acquisition of the facility from Owens-Illinois.   Such pre-1989
contamination is subject to indemnification by Owens-Illinois.  The Company and
Owens-Illinois have entered into supplemental agreements establishing procedures
for  investigation and remediation of the contamination.  In 1994, the Georgia
Department of Natural Resources ("DNR") determined that further investigation
must be completed before DNR decides whether corrective action is needed.  The
Company and Owens-Illinois are currently finalizing a consent order with DNR,
which would establish a schedule for completing such investigation (all but a
small portion of such investigation to be completed and funded by Owens-
Illinois).  Management does not believe that the final resolution of this matter
will have a material adverse effect on the results of operations or financial
condition of the Company.

The Cincinnati facility, which was acquired in the MCC Acquisition, is listed
on environmental agency lists as a site that may require investigation for
potential contamination.  In addition, an environmental review undertaken after
the acquisition identified certain environmental compliance issues relating to
the facility.  The foregoing matters could result in a requirement for the
Company to investigate and remediate the facility or take other corrective
action.  To date, no agency has required such action and the cost of any
investigation or remediation cannot be reasonably estimated.  BMFCC has agreed
to indemnify the Company for liabilities associated with any such required
investigation or remediation as follows: (i) BMFCC will bear the first $0.1
million of such liabilities relating to the environmental agency list matter
discussed above and (ii) any liabilities in excess of such amount will be
subject to the general environmental liability indemnification provisions of the
agreement with BMFCC, which provide that BMFCC will bear 100% of the first $0.3
million of environmental liabilities, 80% of the next $3.0 million of
environmental liabilities, and 65% of all environmental liabilities exceeding
$3.3 million.  The Company has initiated certain environmental indemnification
claims against BMFCC and is in discussions with BMFCC regarding resolution of
such claims.

The current owner and former operator of the Company's recently acquired
Trenton, New Jersey facility, U.S. Eagle Litho ("U.S. Eagle"), is required to
investigate and remediate contamination at that location under the New Jersey
Industrial Site Recovery Act ("IRSA").  U.S. Eagle, which owns the Trenton
facility and leases it to the Company, became obligated to fully investigate and
remediate areas of concern at the Trenton facility when it sold certain assets
of its Trenton can manufacturing business in 1988.  U.S. Eagle is currently
conducting soil and groundwater remediation at several identified areas of
concern at the site.  Under ISRA, U.S. Eagle is fully responsible for
investigation and remediation of the identified areas of concern.   The Company
is not responsible for any costs to investigate or clean-up past releases being
addressed by U.S. Eagle.  In addition, this matter is indemnified by U.S. Can
subject to certain limitations.

                                       10
<PAGE>

The Company (and in some cases, predecessors to the Company) have from time to
time received requests for information or notices of potential responsibility
pursuant to the Comprehensive Environmental Response, Compensation and Liability
Act ("CERCLA") with respect to certain waste disposal sites utilized by former
or current facilities of the Company or its various predecessors.  To the
Company's knowledge, all such matters which have not been resolved are, subject
to certain limitations, indemnified by the sellers of the relevant Company
affiliates, and all such unresolved matters have been accepted for
indemnification by such sellers.  Management believes that none of these matters
will have a material adverse effect on the results of operations or financial
condition of the Company.  Because liability under CERCLA is retroactive, it is
possible that in the future the Company may incur liability with respect to
other sites.

Sales of aerosol cans have historically comprised approximately 11% of the
Company's annual general line sales. Federal and certain state environmental
agencies have issued, and may in the future issue, environmental regulations
which have the effect of requiring reformulation by consumer product
manufacturers (the Company's customers) of aerosol propellants or aerosol-
delivered consumer products to mitigate air quality impacts (principally related
to lower atmosphere ozone formulation). Industry sources believe that aerosol
product manufacturers can successfully achieve any required reformulation. There
can be no assurance, however, that reformulation can be accomplished in all
cases with satisfactory results. Failure by the Company's customers to
successfully achieve such reformulation could affect the viability of aerosol
cans as product delivery containers and thereby have a material adverse effect
on the Company's sales of aerosol cans.

                                       11
<PAGE>

Item 2.    Management's Discussion and Analysis of Financial Condition and
           Results of Operations

                             Results of Operations



Net sales increased 15.0% in the third quarter of fiscal 1999 to $123.1 million
from $107.0 million in the third quarter of fiscal 1998.  Net sales for the nine
months ended July 4, 1999 increased 16.4% to $349.6 million compared to $300.3
million for the nine months ended June 28, 1998.  This increase was largely due
to incremental sales volume provided from the U.S. Can Acquisition, which more
than offset lower general line sales.

Cost of products sold  (excluding depreciation and amortization) increased 21.8%
in the third quarter of fiscal 1999 to $106.9 million from $87.7 million in the
same period of fiscal 1998.  Cost of products sold for the nine months ended
July 4, 1999 increased 20.3% to $298.7 million compared to $248.1 million for
the nine months ended June 28, 1998.   Cost of products sold as a percentage of
net sales increased from 82.0% in the third quarter of fiscal 1998 to 86.8% in
the third quarter of fiscal 1999. This increase resulted primarily from
incremental sales of the U.S. Can Acquisition which historically had
significantly higher associated cost of sales, start-up costs of new equipment
and plant rationalization costs at the Company's can assembly plants in the
Northeast and Southwest. The rationalization process for the Company's Northeast
and Southwest facilities is progressing at a slower rate than initially planned.
Ongoing delays in construction, equipment relocations and the hiring and
training of new employees has contributed to the increase in costs and is
expected to continue through the first half of fiscal 2000.  The Company is
focused on rationalizing these facilities in the most cost effective manner
possible; however, the aforementioned delays coupled with production startup and
efficiencies have hampered this process.

Depreciation and amortization expense increased $0.5 million in the third
quarter of fiscal 1999 to $4.5 million from $4.0 million in the third quarter of
fiscal 1998.  Depreciation and amortization expense for the nine months ended
July 4, 1999 increased to $13.7 million compared to $10.9 million for the six
months ended June 28, 1998.  The increase is primarily due to the U.S. Can
Acquisition and the Company's capital expenditure program.

Selling and administrative costs decreased $1.7 million to $5.1 million in the
third quarter of fiscal 1999 from $6.8 million in the third quarter of fiscal
1998.  The Company has committed to a plan of cost control initiatives for the
fourth quarter of fiscal 1999 and for fiscal year 2000.  Selling and
administrative costs for the nine months ended July 4, 1999 decreased 7.8% to
$15.4 million compared to $16.7 million for the nine months ended June 28, 1998.
On a comparative basis, the primary decrease in the third quarter of fiscal 1999
and nine month period was primarily attributable to expenses in the third
quarter of fiscal 1998 and nine month period for building infrastructure to
support strategic growth.  Selling and administrative costs as a percentage of
net sales decreased 2.2% to 4.1% in the third quarter of fiscal 1999 from 6.3%
in the third quarter of fiscal 1998.  The decrease as a percent of net sales is
due primarily to the impact of the incremental sales volume from the U.S. Can
Acquisition.

Interest expense increased $0.2 million to $3.5 million in the third quarter of
fiscal 1999 from $3.3 for the third quarter of fiscal 1998.  Interest expense
for the nine months ended July 4, 1999 increased $0.4 million to $10.7 million
compared to $10.3 million for the nine months ended June 28, 1998.  The increase
in the third quarter and the nine month period is primarily attributable to
increased borrowings to fund working capital, capital expenditure initiatives
and the U.S. Can Acquisition.

Net income before income taxes and cumulative effect of change in accounting
increased $9.6 million to $3.3 million in the third quarter of fiscal 1999, from
a net loss of  $6.3 million in the third quarter of fiscal 1998.  This increase,
in addition to the factors addressed above is due primarily to a restructuring
charge of $11.5 million (pretax) in the third quarter of fiscal 1998 and to the
other items noted above.  The restructuring charge was related to the planned
closure of three manufacturing facilities, the shift of the related production
to other facilities and the elimination of an internal trucking fleet.

Diluted earnings per share were $0.20 per share for the third quarter of fiscal
1999 compared to a net loss of $0.40 per share for the same period of 1998.  The
weighted average diluted shares outstanding were 9.5 million and 10.0 million
for the respective quarters.

                                       12
<PAGE>

                        Liquidity and Capital Resources


The Company's cash requirements for operations, capital expenditures and
acquisitions during the nine months ended July 4, 1999 were financed through
borrowings under the Company's Credit Agreement and internally generated cash
flows.  At July 4, 1999, the Company had availability under the existing Credit
Agreement to borrow an additional $56.7 million, plus an additional $25 million
if certain conditions are met.

During the first nine months of fiscal 1999, net cash provided by operating
activities was $17.8 million compared to $1.3 million used during the first nine
months of  fiscal 1998.  The increase is primarily attributable to higher net
income and depreciation, reduction in other current assets, increases in
accounts payable and accrued income taxes, partially offset by increases in
accounts receivable.

During the first nine months of fiscal 1999, net cash used in investing
activities was $51.5 million compared to $26.1 million used in the first nine
months of  fiscal 1998.  Capital expenditures during the first half of fiscal
1999 totaled $21.7 million of which $6.3 was spent during the third quarter of
fiscal 1999.  The Company intends to invest approximately $32 million on capital
expenditures during fiscal 1999.  During the second quarter of fiscal 1999, the
Company received $4.5 million from the sale of its Solon, Ohio plant which was
shut down late in fiscal 1998.  During the first quarter of 1999, the Company
used $30.2 million for the U.S. Can Acquisition.

Net cash provided by financing activities during the first nine months of fiscal
1999 was $35.6 million compared to $26.4 million provided during the first nine
months of  fiscal 1998. Cash provided by financing activities for the first nine
months of fiscal 1999 included $46.7 million of borrowings under the Company's
Credit Agreement.  Unpresented bank drafts decreased $9.6 million during the
first nine months of 1999. The Company issued and repurchased $0.7 million of
its common stock during the first nine months of fiscal 1999 under the Company's
common stock repurchase program.

At July 4, 1999, the Company was restricted in its ability to pay dividends and
make other restricted payments in an amount greater than approximately $12.2
million.  The Company's subsidiaries are restricted in their ability to transfer
funds to the Company, except for funds to be used to effect approved
acquisitions, pay dividends in specified amounts, reimburse the Company for
operating and other expenditures made on behalf of the subsidiaries and repay
permitted intercompany indebtedness.

The Company has historically financed its operations through cash provided by
operations and by borrowings under its credit agreements.  BWAY's future
principal uses of cash will be for payment of operating expenses, funding
capital investments, repurchase of common stock, and servicing debt.

Management believes that cash provided from borrowings available under the
Credit Agreement and operations will provide it with sufficient liquidity to
meet its operating needs and continue the Company's capital expenditure
initiatives for the next twelve months.  The Company continues to pursue growth
strategies and acquisition opportunities in the container industry and in
connection therewith may incur additional indebtedness.



                         Impact of the Year 2000 Issue



The Year 2000 issue is the result of potential problems with computer systems or
any equipment with computer chips that use dates where the date has been stored
as just two digits (e.g. 98 for 1998).  On January 1, 2000, any clock or date-
recording mechanism that utilize date sensitive software using only two digits
to represent the year may recognize a date using 00 as the year 1900 rather than
the year 2000.  This could result in a system failure or miscalculations causing
significant disruption of operations, including among other things a temporary
inability to process transactions, send invoices, or engage in similar
activities.  The Year 2000 issue can arise at any point in the Company's supply,
manufacturing, processing, distribution and financial chains.  Any disruptions
in the above stated chains of the Company could have a material adverse affect
on the Company's financial condition and results of operations.

The Company determined that it would be required to replace or modify
significant portions of its business application software so that its computer
systems would properly utilize dates beyond December 31, 1999.  The Company
presently believes that with conversions to new systems and modifications to
existing software the Year 2000 issue can be mitigated with regard to the
Company's material business application software.  However, if such
modifications and conversions are not made, or are not timely, the Year 2000
issue could have a material adverse impact on the operations of the Company.

During 1998, the Company initiated the implementation of Enterprise Resource
Planning (ERP) software to replace the

                                       13
<PAGE>

Company's core business applications, which support sales and customer service,
manufacturing, distribution, and finance and accounting. The ERP software was
selected to add functionality and efficiency in the business processes of the
Company in the normal course of upgrading its systems to address its business
needs. In addition, the Company established a Year 2000 Steering Committee in
May 1998 to analyze and assess the remainder of its business not addressed by
the ERP software. The Steering Committee has executive officers of the Company
as its members. The Steering Committee is responsible for the formulation of the
Company's Year 2000 project.

The scope of the Steering Committee's responsibilities covers all material
computer systems, computer and network hardware, production process controllers,
office equipment, access control, maintenance machinery, telephone systems,
products it sells, critical vendors and customers.

The Steering Committee identified those IT systems that were considered mission
critical to the business.  Of the identified mission critical systems, the
Company is currently instituting remediation through a global ERP software
implementation.  All other systems are presently being replaced or upgraded to
adequately address the Year 2000 issue.  Approximately 74% of the mission
critical systems have been remediated as of July 4, 1999.  The Company
anticipates that the remaining mission critical implementations, along with
other non-compliant systems will be completed during the second half of calendar
1999. Testing of critical systems will be completed on an ongoing basis during
the second half of calendar 1999.

During 1999, the Company has performed a comprehensive review and evaluation of
embedded systems within its manufacturing facilities.  This evaluation is
ongoing and is intended to inventory and evaluate embedded systems and their
Year 2000 compliance and associated risk.   Upgrades and replacements will be
performed as needed and will be incurred as a part of normal maintenance
programs.  Associated costs are not expected to be significant.  The Company
cannot fully eliminate the potential impact on all embedded system non-
compliance; however, at present the overall risk appears to be low.

The Company has initiated formal communications with all of its significant
suppliers and large customers to determine the extent to which the Company is
vulnerable to those third parties failure to remediate their own Year 2000
issues.  The Company can give no guarantee that the systems of other companies
on which the Company's systems rely will be converted on time or that a failure
to convert by another company or a conversion that is incompatible with the
Company's systems, would not have a material adverse effect on the Company.

The Company is currently utilizing, and will continue to utilize, internal and
external resources to implement, reprogram or replace, and test software and
related assets affected by the Year 2000 issue.  The Company intends to complete
the majority of its efforts in this area by the end of fiscal 1999, leaving
adequate time to assess and correct any significant issues that may materialize.
As of July 4, 1999, the Company has incurred approximately $20.3 million for ERP
system upgrades and replacements related to the Year 2000 project.  The total
remaining cost of the ERP system and the Year 2000 project is estimated at $5--8
million and is being funded through operating cash flows.  Of the total project
cost, approximately $18--23 million is attributable to the purchase and
implementation of the new hardware and software, which will be capitalized.  The
remainder will be expensed as incurred over the next two years and is not
expected to have a material effect on the results of operations during any
quarterly or annual reporting period.

The Company's Year 2000 Steering Committee has developed contingency plans
intended to mitigate the possible disruptions that may result from the Year 2000
issue.  The company's contingency plans include the use of alternative
suppliers, stock piling of raw materials, increased inventory levels and other
appropriate measures necessary to operate its factories.   At present, the
Company has made reasonable efforts to ensure key suppliers and customers have
instituted some measure of readiness and has requested written response from
each.  In key operating areas, the Company has conducted meetings with suppliers
to review Year 2000 plans and contingency options.   Internal contingency plans
provide the necessary readiness to address most supply chain, manufacturing and
delivery interruptions.  The Company has instituted a formal communication
network to handle all internal and external communications during January 2000.
This network will provide on-call internal an external support to effect timely
remediation of Year 2000 issues.   The contingency plans and the related cost
estimates will be revised as additional information becomes available.  The
Company has completed the initial phase of  its contingency planning, and will
further refine the plan during the remainder of 1999.

The Company believes that the most reasonable and likely worst-case scenario for
the Company with respect to the Year 2000 issue is the failure of a critical
vendor, including but not limited to a utility or steel supplier, to provide
required goods and/or services after December 31, 1999.  Such a failure could
result in temporary production outages and lost sales and profits.  The Company
believes that because of the geographic dispersion of its operations, it is
unlikely an isolated third-party failure would have a material adverse effect on
the Company's results of operations, financial condition, or cash flow.  The
Company also believes that the formulation of its contingency plans should
provide reasonable measures to reduce the severity and length of any possible
disruptions and losses.  However, because the Company's Year 2000 issue
compliance is dependent upon key third party readiness, there can be no
assurance that the Company's Year 2000 issue compliance efforts will preclude a
Year

                                       14
<PAGE>

2000 issue or a series of issues outside its direct control from adversely
affecting its results of operations, financial condition, or cash flow.  In
addition, although not anticipated, any failure by the Company to correct
critical internal computer systems before Year 2000 could also have such an
adverse effect.

The discussion of the Company's efforts, and management's expectations and
estimates, concerning the Year 2000 issue contain forward-looking statements.
The costs of the project and the timetable in which the Company plans to
complete the Year 2000 compliance requirements are based on management's
estimates, which were derived utilizing numerous assumptions of future events
including the continued availability of certain resources, third party
modification plans and other factors.  However, there can be no guarantee that
these estimates will be achieved and actual results could differ materially from
these plans.  In addition, there can be no assurances that there will be no
adverse impact on the Company's relationships with its customers, vendors, or
other persons internal to the Company's operations.  Specific factors that might
cause such material differences include, but are not limited to, unanticipated
problems identified in the ongoing Year 2000 issue compliance review, costs for
contingency plans, the availability and cost of internal and external resources
to implement, reprogram, and replace and test the Company's software and other
Year 2000 issue sensitive assets, the ability to locate and correct all relevant
computer codes, and similar uncertainties.

                                       15
<PAGE>

Note:  This document contains forward-looking statements as encouraged by the
Private Securities Litigation Reform Act of 1995.  All statements contained in
this document, other than historical information, are forward-looking
statements.  These statements represent management's current judgement on what
the future holds.  A variety of factors could cause business conditions and the
Company's actual results to differ materially from those expected by the Company
or expressed in the Company's forward-looking statements.  These factors include
without limitation, timing and cost of plant start-up and closure, the Company's
ability to successfully integrate acquired businesses and implement its 3R
strategic initiatives; labor unrest; changes in market price or market demand;
changes in raw material costs or availability; loss of business from customers;
unanticipated expenses; changes in financial markets; potential equipment
malfunctions; the Company's ability to identify and remedy Year 2000 issues; the
timing and costs of plant start-up and closures and the other factors discussed
in the Company's filings with the Securities and Exchange Commission.

                                       16
<PAGE>

Item 3.   Quantitative and Qualitative Disclosures About Market Risk

The Company's Credit Agreement permits the Company to borrow up to $125 million,
plus an additional $25 million provided certain conditions and restrictive
financial covenants are met.  Borrowings under the Credit Agreement bear
interest at either the prime rate or LIBOR plus 1.5% at the option of the
Company.  At July 4, 1999, the Company has borrowings under the Credit Agreement
of $68.3 million that were subject to interest rate risk.  Each 1.0% increase in
interest rates would impact pretax earnings by $0.2 million per quarter.

                                       17
<PAGE>

PART II.  OTHER INFORMATION


Item 1.  Legal Proceedings

Not applicable.


Item 2.  Changes in Securities and Use of Proceeds

Not applicable.


Item 3.  Defaults upon Senior Securities

Not applicable.


Item 4.  Submission of Matters to a Vote of Security Holders

Not applicable.


Item 5.  Other Information

Not applicable.


Item 6.  Exhibits and Reports on Form 8-K

See Index of Exhibits.

                                       18
<PAGE>

                                   SIGNATURE



Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                                         BWAY  Corporation
                                         (Registrant)



Date:     August 18, 1999
                                         By: /s/ John M. Casey
                                             -------------------
                                             John M. Casey
                                             Executive Vice President &
                                             Chief Financial Officer



Form 10-Q: For the quarterly period ending July 4, 1999.

                                       19
<PAGE>

                                   INDEX TO EXHIBITS
                                   -----------------



     Exhibit
       No.                          Description of Document
     -------      -------------------------------------------------------------

       10.1       Employment Agreement between the Company and John T.
                  Stirrup--Amendment No. 2*




___________
*  Management contract or compensatory plan or arrangement.

                                       20