UNITED STATES
                      SECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549

# ______________________

# FORM 10-Q

# QUARTERLY REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934

For the quarterly period ended:        
  September 30, 2003

Commission File Number:        
            00-19800

# GIBRALTAR PACKAGING
GROUP, INC.(Exact name of registrant as specified in its charter)

|Delaware                                             | 47-0496290                             
|---------------------------------------------------- | ---------------------------------------
|(State of incorporation)                             | (I.R.S. Employer Identification Number)
|2000 Summit Avenue                                  
|Hastings, Nebraska                                   | 68901                                  
|(Address of principal executive offices)             | (Zip Code)                             
|(402) 463-1366                                       | www.gibraltarpackaginggroup.com        
|(Registrant's telephone number, including area code) | (Registrant's website)                 

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. x Yes o No

Indicate by check mark whether the
registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). o Yes
x No

As of September 30, 2003, there were
5,041,544 shares of the Companys common stock, par value $0.01 per share, issued
and outstanding.

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# GIBRALTAR PACKAGING GROUP, INC. AND SUBSIDIARIESINDEX

|         |                                                                                                     | Page Number
|-------- | --------------------------------------------------------------------------------------------------- | -----------
|PART I.  | FINANCIAL INFORMATION                                                                               |            
|Item 1.  | Financial Statements                                                                               
|         | Consolidated Balance Sheets                                                                         | 1          
|         | As of September 30, 2003 (Unaudited) and June 28, 2003                                             
|         | Consolidated Statements of Operations (Unaudited) for the                                           | 2          
|         | Three Months Ended September 30, 2003 and 2002                                                     
|         | Consolidated Statements of Cash Flows (Unaudited) for the                                           | 3          
|         | Three Months Ended September 30, 2003 and 2002                                                     
|         | Notes to Consolidated Financial Statements (Unaudited)                                              | 4          
|Item 2.  | Management's Discussion and Analysis of Financial
              Condition and Results of Operations | 6          
|Item 3.  | Quantitative and Qualitative Disclosures About Market Risk                                          | 12         
|Item 4.  | Controls and Procedures                                                                             | 12         
|PART II. | OTHER INFORMATION                                                                                   |            
|Item 1.  | Legal Proceedings                                                                                   | 13         
|Item 4.  | Submission of Matters to a Vote of Security Holders                                                 | 13         
|Item 6.  | Exhibits and Reports on Form 8-K                                                                    | 13         
|         | Signature                                                                                           | 14         

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# GIBRALTAR PACKAGING GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
(In thousands except share data)

|                                                  | September 30,
2003 | June 28,
2003
|------------------------------------------------- | ------------------ | -------------
|
|ASSETS                                            |                    |              
|CURRENT ASSETS:                                   |                    |              
|Cash                                              |                    |              
|Accounts receivable(Net of allowance for          |                    |              
|doubtful accounts of $479 and $492, respectively) |                    |              
|Inventories                                       |                    |              
|Deferred income taxes                             |                    |              
|Prepaid and other current assets                  |                    |              
|                                                  |                    |              
|Total current assets                              |                    |              
|PROPERTY, PLANT AND EQUIPMENT - Net               |                    |              
|GOODWILL                                          |                    |              
|OTHER ASSETS(Net of accumulated amortization      |                    |              
|of $244 and $213, respectively)                   |                    |              
|                                                  |                    |              
|TOTAL                                             |                    |              
|                                                  |                    |              
|LIABILITIES AND STOCKHOLDERS' EQUITY              |                    |              
|CURRENT LIABILITIES:                              |                    |              
|Checks not yet presented                          |                    |              
|Current portion of long-term debt                 |                    |              
|Accounts payable                                  |                    |              
|Accrued expenses                                  |                    |              
|                                                  |                    |              
|Total current liabilities                         |                    |              
|LONG-TERM DEBT - Net of current portion           |                    |              
|DEFERRED INCOME TAXES                             |                    |              
|OTHER LONG-TERM LIABILITIES                       |                    |              
|                                                  |                    |              
|Total liabilities                                 |                    |              
|                                                  |                    |              
|STOCKHOLDERS' EQUITY:                             |                    |              
|Preferred stock, $.01 par value; 1,000,000 shares |                    |              
|authorized; none issued                           |                    |              
|Common stock, $.01 par value; 10,000,000 shares   |                    |              
|authorized; 5,041,544 issued and outstanding      |                    |              
|Additional paid-in capital                        |                    |              
|Accumulated other comprehensive loss              |                    |              
|Accumulated deficit                               |                    |              
|                                                  |                    |              
|Total stockholders' equity                        |                    |              
|                                                  |                    |              
|TOTAL                                             |                    |              
|                                                  |                    |              

See notes to unaudited consolidated financial statements.

1

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# GIBRALTAR PACKAGING GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands except share data)

|                                            | Three Months Ended
September 30,
|------------------------------------------- | --------------------------------
|
|NET SALES                                   |                                 
|COST OF GOODS SOLD                          |                                 
|                                            |                                 
|GROSS PROFIT                                |                                 
|                                            |                                 
|OPERATING EXPENSES:                         |                                 
|Selling, general and administrative         |                                 
|                                            |                                 
|INCOME FROM OPERATIONS                      |                                 
|                                            |                                 
|OTHER EXPENSE:                              |                                 
|Interest expense                            |                                 
|Other (income) expense - net                |                                 
|                                            |                                 
|Total other expense                         |                                 
|                                            |                                 
|INCOME BEFORE INCOME TAXES                  |                                 
|INCOME TAX PROVISION                        |                                 
|                                            |                                 
|NET INCOME                                  |                                 
|                                            |                                 
|BASIC AND DILUTED PER COMMON SHARE AMOUNTS: |                                 
|Net Income                                  |                                 
|                                            |                                 
|WEIGHTED AVERAGE SHARES OUTSTANDING         |                                 
|(basic and diluted)                         |                                 
|                                            |                                 

See notes to unaudited consolidated financial statements.

2

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# GIBRALTAR PACKAGING GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)(In thousands)

|                                                          | Three Months Ended
September 30,
|--------------------------------------------------------- | --------------------------------
|
|CASH FLOWS FROM OPERATING ACTIVITIES:                     |                                 
|Net income                                                |                                 
|Adjustments to reconcile net income to                    |                                 
|net cash flows from operating activities:                 |                                 
|Depreciation and amortization                             |                                 
|Provision for losses on accounts receivable               |                                 
|Loss (gain) on sale of property, plant and equipment      |                                 
|Deferred income taxes                                     |                                 
|Changes in operating assets and liabilities:              |                                 
|Accounts receivable - net                                 |                                 
|Inventories                                               |                                 
|Prepaid expenses and other assets                         |                                 
|Accounts payable                                          |                                 
|Accrued expenses and other liabilities                    |                                 
|                                                          |                                 
|Net Cash Flows from Operating Activities                  |                                 
|                                                          |                                 
|CASH FLOWS FROM INVESTING ACTIVITIES:                     |                                 
|Proceeds from sale of property, plant and equipment       |                                 
|Purchases of property, plant and equipment                |                                 
|                                                          |                                 
|Net Cash Flows from Investing Activities                  |                                 
|                                                          |                                 
|CASH FLOWS FROM FINANCING ACTIVITIES:                     |                                 
|Net borrowings (payments) under revolving credit facility |                                 
|Net principal repayments of long-term debt                |                                 
|Net repayments under capital leases                       |                                 
|                                                          |                                 
|Net Cash Flows from Financing Activities                  |                                 
|                                                          |                                 
|NET INCREASE (DECREASE) IN CASH                           |                                 
|CASH AT BEGINNING OF PERIOD                               |                                 
|                                                          |                                 
|CASH AT END OF PERIOD                                     |                                 
|                                                          |                                 

See notes to unaudited consolidated financial statements.

3

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# GIBRALTAR PACKAGING GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

A.     GENERAL

| | The accompanying unaudited consolidated financial statements of Gibraltar Packaging Group,
Inc. (Gibraltar or the Company) have been prepared in accordance
with Rule 10-01 of Regulation S-X for interim financial statements required to be filed
with the Securities and Exchange Commission and do not include all information and
footnotes required by accounting principles generally accepted in the United States of
America for complete financial statements. However, in the opinion of management, the
accompanying unaudited consolidated financial statements contain all adjustments,
consisting only of normal recurring adjustments, necessary to present fairly the financial
position of the Company as of September 30, 2003, and the results of its operations and
cash flows for the periods presented herein. Results of operations for the three months
ended September 30, 2003 are not necessarily indicative of the results to be expected for
the full fiscal year. The financial statements should be read in conjunction with the
audited financial statements for the year ended June 28, 2003 and the notes thereto
contained in the Companys Annual Report on Form 10-K.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

B.     INVENTORIES

| | Inventories consisted of the following (In thousands):
| | ------------------------------------------------------

|                       | September 30,
2003 | June 28,
2003
|---------------------- | ------------------ | -------------
|
|Finished goods         |                    |              
|Work in process        |                    |              
|Raw materials          |                    |              
|Manufacturing supplies |                    |              
|                       |                    |              
|                       |                    |              
|                       |                    |              

C.     STOCK-BASED COMPENSATION

| | The
Company accounts for its employees stock-based compensation plans under the recognition
and measurement principles of APB Opinion No. 25, Accounting for
Stock Issued to Employees, and related interpretations. The
expense reported in net income under APB Opinion No. 25 is the same as under FASB
Statement No. 123, Accounting for Stock-Based Compensation. In accordance with APB Opinion
No. 25, there is no stock-based employee compensation cost associated with any plan, as
all options granted under those plans had an exercise price equal to the market value of
the underlying common stock on the date of the grant. Additionally, all outstanding
options became fully vested prior to the periods presented. The following table
illustrates the effect on net income and earnings per share if the Company had applied the
fair value recognition provisions of FASB Statement No. 123 to stock-based employee
compensation.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

4

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# GIBRALTAR PACKAGING GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

|                                  | Three Months Ended
September 30,
|--------------------------------- | --------------------------------
|
|Reported net income per APB 25    |                                 
|                                  |                                 
|Pro forma net income per FASB 123 |                                 
|                                  |                                 
|Earnings per share:               |                                 
|As reported                       |                                 
|                                  |                                 
|Pro forma                         |                                 
|                                  |                                 

| | At September 30, 2003, the stock option exercise prices for all options outstanding under the
1992 Plan and Directors Plan exceeded the market value of the Companys common stock
and therefore the options are considered anti-dilutive and are excluded from the
Companys earnings per share calculation.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

D.     RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

| | In January 2003, the FASB issued Interpretation No. 46, Consolidation of
Variable Interest Entities (FIN 46).  FIN 46 requires a variable
interest entity to be consolidated by a company if that company is subject to a majority
of the risk of loss from the variable interest entitys activities or entitled to
receive a majority of the entitys residual returns or both.  FIN 46 also
requires disclosures about variable interest entities that a company is not required to
consolidate but in which it has a significant variable interest.  The consolidation
requirements of FIN 46 apply immediately to variable interest entities created after
January 31, 2003.  The consolidation requirements apply to existing entities in the
first fiscal year or interim period beginning after December 15, 2003. The adoption of
this interpretation did not have a material impact on the Companys financial
position or results of operations, as the Company has no variable interest entities.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

E.     COMPREHENSIVE INCOME

| | Comprehensive income for the three months ended September 30, 2003 and 2002 was the same as net income.
| | -------------------------------------------------------------------------------------------------------

F.     RECLASSIFICATION

| | Certain amounts in the fiscal 2003 financial statements have been reclassified to conform with the
fiscal 2004 presentation.
| | ----------------------------------------------------------------------------------------------------------------------------

5

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# GIBRALTAR PACKAGING GROUP, INC. AND SUBSIDIARIES

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

| | Results of Operations
| | ---------------------

| | Three Months Ended September 30, 2003 Compared to
Three Months Ended September 30, 2002
| | ---------------------------------------------------------------------------------------

| | In the first quarter of fiscal 2004, the Company had net sales of $17.0 million compared with
$17.3 million in the corresponding period of fiscal 2003, a decrease of $0.3 million or
1.8%.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Gross profit for the first quarter of fiscal 2004 decreased to 18.6% of net sales from 19.7% in
the corresponding period of fiscal 2003. Higher material costs from changes in customer
mix contributed to this decrease, as well as increased lease expenses as the Company
leases new equipment to improve its competitive position. A reduction in labor costs, as
the Company adapts its workforce to changing market conditions, was tempered by a $0.1
million increase in group health insurance costs. Additionally, in fiscal 2003, the
Company recorded a $0.1 million gain from the settlement of the Anthem Blue Cross and Blue
Shield of Connecticut litigation.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Income from operations for the first quarter of fiscal 2004 was $1.3 million compared with $1.4
million in the corresponding period of fiscal 2003, a decrease of $0.1 million or 6.9%.
This decrease was primarily the result of the decrease in sales, partially offset by a
slight reduction in selling, general and administrative expenses.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Total interest expense decreased $0.1 million or 26.8% to $0.2 million in the first quarter of
fiscal 2004 from $0.3 million in the corresponding period of fiscal 2003. This decrease is
due to $3.2 million in lower average borrowings and a reduction in the average interest
rate to 4.6% from 5.4%.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The income tax provision as a percentage of pre-tax income for the first quarter of fiscal
2004 was 38.0% compared to 40.0% for the first quarter of fiscal 2003.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Net income for the first quarter of fiscal 2004 was $0.7 million or $0.14 per share, compared
to $0.7 million or $0.14 per share in the first quarter of fiscal 2003.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Liquidity and Capital Resources
| | -------------------------------

| | Historically,
the Companys liquidity requirements have been met by a combination of funds provided
by operations and its revolving credit agreements. At September 30, 2003, the
Companys current assets exceeded its current liabilities by $4.3 million, as
compared to $5.4 million at June 28, 2003. Funds provided by operations during the three
months ended September 30, 2003 were $1.9 million compared with funds provided of $0.4
million in the corresponding period of fiscal 2003. The decrease in working capital and
the increase in funds provided by operations are primarily the result of the reduction in
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

6

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# GIBRALTAR PACKAGING GROUP, INC. AND SUBSIDIARIES

| | inventory as the Company transitions out the business of two customers which was lost in the last
quarter of fiscal 2003. The Company also had available to it unused borrowing capacity of
$4.7 million as of September 30, 2003.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | During the three months ended September 30, 2003, capital expenditures totaled $0.2 million
compared with $0.1 million in the corresponding period of fiscal 2003. The Company makes
capital improvements to increase efficiency and product quality, and periodically upgrades
its equipment by purchasing or leasing new or previously used equipment.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The Companys on-going strategy is to continue to focus its efforts on its core business
of folding cartons, as well as the supporting product lines of flexible, litho-laminated,
and corrugated products. The Company intends to expand these product lines by utilizing
the maximum capacity at each facility, while continually identifying, researching, and,
when applicable, implementing new technologies and equipment that will enable the Company
to continue to improve performance, productivity, and profitability. As part of this
process, the Company has added, and has made commitments on, new equipment that adds
capacity and lowers production costs, as well as enables the Company to enter into new
markets.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Under the current strategy, management believes that future funds generated by operations and
borrowings available under its credit facility with LaSalle Business Credit, Inc.
(LaSalle) will be sufficient to meet working capital and capital expenditure
requirements in the near term.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | On December 20, 2001, the Company entered into a three-year renewable credit facility with
LaSalle. This facility provides for an $11.6 million Term Loan, a $4.0 million Special
Advance Loan, and a $12.0 million working capital revolving line-of-credit
(Revolver). The Term Loan and Special Advance Loan are to be repaid over seven
years, but are callable after three years. The Special Advance Loan was repaid in April
2003. Until the Special Advance Loan was repaid, only monthly interest payments were
applied against the Term Loan. Since repayment of the Special Advance Loan, monthly
principal payments of $169,897 plus interest are applied against the Term Loan. The credit
facility is secured by a first priority perfected security interest in and lien on all
assets (real and personal, tangible and intangible) of the Company, excluding its
Burlington, North Carolina property.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The Revolver provides for a revolving line of credit under a borrowing base commitment subject
to certain loan availability requirements. Loan availability under the Revolver may not
exceed the lesser of: (1) $12.0 million; or (2) the sum of (a) 85% of the Companys
eligible accounts receivable plus (b) a percentage of the Companys eligible
inventory which ranges from 35% to 70%. At no time may the sum of aggregated loan advances
outstanding under the Revolver plus the aggregate amount of extended letter of credit
guarantees exceed loan availability.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The Revolver bears interest at LaSalles prime rate plus 0.50% or the London Interbank
Offered Rate (LIBOR) plus 2.75%. The Term Loan bears interest at
LaSalles prime rate plus 0.75% or LIBOR plus 3.00%. The Special Advance Loan was
subject to interest at LaSalles prime rate plus 1.00% or LIBOR plus 3.25%. The
Company also pays a commitment fee of 0.50% on the unused portion of the Revolver. The
interest rates at September 30, 2003 were a combination of prime and LIBOR. LaSalles
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

7

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# GIBRALTAR PACKAGING GROUP, INC. AND SUBSIDIARIES

| | prime and LIBOR rates for the Revolver were 4.00% and 1.12%, respectively, at September 30,
2003. LaSalles prime and LIBOR rates for the Term Loan were 4.00% and 1.25%,
respectively, at September 30, 2003.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | As of September 30, 2003, all outstanding letters of credit were guaranteed by LaSalle. The
Company pays an annual letter of credit fee of 2.00% on the outstanding balance to
guarantee availability under the Revolver. Outstanding letters of credit at September 30,
2003 amounted to $147,500 and related to workmans compensation insurance policies.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The LaSalle credit facility contains certain restrictive covenants including financial
covenants related to net worth, debt service coverage, interest coverage and capital
expenditures. As of September 30, 2003, the Company was in compliance with all financial
covenants. In addition, the Companys credit facility restricts the ability of the
Company to pay dividends.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Contractual Obligations and Commercial Commitments
| | --------------------------------------------------

| | The Company has contractual obligations and commercial commitments that may affect its
financial condition. Based on managements assessment of the underlying provisions
and circumstances of the material contractual obligations and commercial commitments of
the Company, including material off-balance sheet and structured finance arrangements,
there is no known trend, demand, commitment, event or uncertainty that is reasonably
likely to occur which would have a material effect on the Companys financial
condition or results of operations. The following tables identify material obligations and
commitments as of September 30, 2003:
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                  
|----------------------------------
|
|
|                                  
|Term Loan                         
|Revolving Line-of-Credit(a)       
|Purchase commitments(b)           
|Capital lease obligations         
|Operating leases                  
|                                  
|Total contractual cash obligations
|                                  

8

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# GIBRALTAR PACKAGING GROUP, INC. AND SUBSIDIARIES

|                            |  | Payments Due by Period
|--------------------------- |  | ----------------------
|
|                           
|Revolving Line-of-Credit(c) |  |                       
|Standby letters of credit   |  |                       
|                           
|Total commercial commitment |  |                       
|                           

| | (a)
 The revolving line-of-credit represents the actual outstanding balance, as of
September 30, 2003.(b)  The Company anticipates that these purchase commitments
will be financed through operating leases.(c)  The revolving line-of-credit
represents the unused borrowing capacity available to the Company, as of September 30,
2003.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Critical Accounting Policies
| | ----------------------------

| | The preparation of the consolidated financial statements in conformity with Generally Accepted
Accounting Principles (GAAP) requires the Company to select and apply
accounting policies that best provide the framework to report the Companys results
of operations and financial position. The selection and application of those policies
require management to make difficult subjective or complex judgments concerning reported
amounts of revenue and expenses during the reporting period and the reported amounts of
assets and liabilities at the date of the financial statements. The judgments and
uncertainties inherent in this process affect the application of those policies. As a
result, there exists the likelihood that materially different amounts would be reported
under different conditions or using different assumptions. Management has identified the
following accounting policies that it deems critical to the portrayal of the
Companys financial condition and results of operations and that involve significant
subjectivity. Management believes that its selection and application of these policies
best represent the operating results and financial position of the Company. The following
discussion provides information on the processes utilized by management in making
judgments and assumptions as they apply to its critical accounting policies.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Allowance for Doubtful Accounts
| | -------------------------------

| | The allowance for doubtful accounts is based on managements assessment of the
collectibility of specific customer accounts and the aging of the accounts receivable. If
there is a deterioration of a customers credit worthiness or actual defaults are
higher than historical experience, estimates of the recoverability of amounts due the
Company could be adversely affected.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Income Taxes
| | ------------

| | The Company records deferred tax assets and liabilities using enacted tax rates for the effect
of temporary differences between the book and tax basis of assets and liabilities. If
enacted tax rates changed, the Company would adjust the deferred tax assets and
liabilities, through the provision for income taxes in the period of change, to reflect
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

9

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# GIBRALTAR PACKAGING
GROUP, INC. AND SUBSIDIARIES

| | the enacted tax rate expected to be in effect when the deferred tax items reverse. The Company
records a valuation allowance on deferred tax assets to reflect the expected future tax
benefits to be realized. In determining the appropriate valuation allowance, the Company
takes into account the level of expected future taxable income and available tax planning
strategies. If future taxable income was lower than expected or if expected tax planning
strategies were not available as anticipated, the Company may record additional valuation
allowance through income tax expense in the period such determination was made.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Impairment of Long-Lived Assets
| | -------------------------------

| | The Companys long-lived assets consist primarily of property, plant and equipment.
Management believes the useful lives assigned to these assets, which range from 2 to 40
years, are reasonable. Management evaluates the long-lived assets for impairment when
events or changes in circumstances indicate, in managements judgment, that the
carrying value of such assets may not be recoverable. If managements assumptions
about these assets change as a result of events or circumstances, and management believes
the assets may have declined in value, then the Company may record impairment charges,
resulting in lower profits.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Goodwill and Intangible Assets
| | ------------------------------

| | The Company is required to make certain assumptions and estimates regarding the fair value of
intangible assets, namely goodwill, when assessing such assets for impairment. Changes in
the fact patterns underlying such assumptions and estimates could ultimately result in the
recognition of impairment losses on intangible assets.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Pension Assets and Liabilities
| | ------------------------------

| | In order to measure pension expense as well as the related assets and liabilities, management
must make a variety of estimates including discount rates used to measure the present
value of certain liabilities, assumed rates of return on assets set aside to fund the
expenses, employee turnover rates, and anticipated mortality rates. The estimates used by
management are based on the Companys historical experience as well as current facts
and circumstances. The Company uses third-party specialists to assist management in
appropriately measuring the expense associated with the plan. Different estimates used by
management could result in the Company recognizing different amounts of expense over
different periods of time.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Contingent Liabilities
| | ----------------------

| | From time to time, there are various claims and lawsuits pending against the Company. The
Company records a liability when the effect of litigation can be estimated and when an
outcome is considered probable. Managements estimates are based on its knowledge of
the relevant facts at the time of the issuance of the Companys consolidated
financial statements. Subsequent developments could materially alter managements
assessment of a matters probable outcome and the estimate of the Companys
liability.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

10

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# GIBRALTAR PACKAGING GROUP, INC. AND SUBSIDIARIES

| | Environmental Issues
| | --------------------

| | The Company records its environmental liabilities when site assessments or remedial actions
are probable and a range of reasonably likely cleanup costs can be estimated. The Company
reviews its sites and assesses the liability quarterly, by assessing a range of reasonably
likely costs for each identified site using currently available information, including
existing technology, current laws and regulations and the probable level of involvement
and financial condition of other potentially responsible parties. These estimates include
costs for site investigations, remediation, operations and maintenance, monitoring and
site closure.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Recently Issued Accounting Pronouncements
| | -----------------------------------------

| | In January 2003, the FASB issued Interpretation No. 46, Consolidation of
Variable Interest Entities (FIN 46).  FIN 46 requires a variable
interest entity to be consolidated by a company if that company is subject to a majority
of the risk of loss from the variable interest entitys activities or entitled to
receive a majority of the entitys residual returns or both.  FIN 46 also
requires disclosures about variable interest entities that a company is not required to
consolidate but in which it has a significant variable interest.  The consolidation
requirements of FIN 46 apply immediately to variable interest entities created after
January 31, 2003.  The consolidation requirements apply to existing entities in the
first fiscal year or interim period beginning after December 15, 2003. The adoption of
this interpretation did not have a material impact on the Companys financial
position or results of operations, as the Company has no variable interest entities.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Forward-Looking Statements
| | --------------------------

| | Statements that are not historical facts, including statements about our confidence in the
Companys prospects and strategies and our expectations about the Companys
sales expansion, are forward-looking statements that involve risks and uncertainties.
These risks and uncertainties include, but are not limited to: (1) softened demand for the
Companys products due to overall economic conditions; (2) the Companys ability
to obtain new business to replace lost business; (3) the Companys ability to execute
its business plan; (4) market acceptance risks, including whether or not the Company will
be able to successfully gain market share against competitors, many of which have greater
financial and other resources than the Company, and the continuing trend of customers to
increase their buying power by consolidating the number of vendors they maintain; (5)
manufacturing capacity constraints, including whether or not, as the Company increases its
sales, it will be able to successfully integrate its new customers into its existing
manufacturing and distribution system; (6) the introduction of competing products by other
firms; (7) pressure on pricing from competition or purchasers of the Companys
products; (8) whether the Company will be able to pass on to its customers price increases
for paper and paperboard products; (9) continued stability in other raw material prices,
including oil-based resin and plastic film; (10) the impact of government regulation on
the Companys manufacturing processes, including whether or not additional capital
expenditures will be needed to comply with applicable environmental laws and regulations
as the Companys production increases; (11) the Companys ability to continue to
comply with the restrictive covenants in its credit facility or to obtain waivers if it is
not in compliance in the future; and (12) the Companys ability to recover from any
potential terrorist attack.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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# GIBRALTAR PACKAGING GROUP, INC. AND SUBSIDIARIES

| | Investors and potential investors are cautioned not to place undue reliance on these forward-looking
statements, which reflect the Companys analysis only as of the date of this report.
The Company undertakes no obligation to publicly revise these forward-looking statements
to reflect events or circumstances that arise after the date of this report. These risks
and others that are detailed in this Form 10-Q and other documents that the Company files
from time to time with the Securities and Exchange Commission, including annual reports on
Form 10-K and any current reports on Form 8-K, must be considered by any investor or
potential investor in the Company.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# Item 3.   Quantitative and Qualitative Disclosures About Market Risk

| | The Companys primary market risk is fluctuation in interest rates. All of the
Companys debt at September 30, 2003 was at variable interest rates. A hypothetical
10% change in interest rates would have had a $20,000 impact on interest expense and cash
flows for the three months ended September 30, 2003.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# Item 4.   Controls and Procedures

| | The Companys Chief Executive Officer, Walter E. Rose, and Vice President Finance, Brett E.
Moller, have reviewed the Companys disclosure controls and procedures as of
September 30, 2003. Based upon this review, these officers believe that the Companys
disclosure controls and procedures are effective in ensuring that material information
related to the Company is made known to them by others responsible for reporting such
material information within the Company.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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# GIBRALTAR PACKAGING GROUP, INC. AND SUBSIDIARIES

| | PART II.   OTHER INFORMATION
| | ----------------------------

# Item 1.   Legal Proceedings

| | From time to time, the Company is a party to certain lawsuits and administrative proceedings
that arise in the conduct of its business. While the outcome of these lawsuits and
proceedings cannot be predicted with certainty, management believes that, if adversely
determined, the lawsuits and proceedings, either singularly or in the aggregate, would not
have a material adverse effect on the financial condition, results of operations or net
cash flows of the Company.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

| | No matters were submitted to a vote of Gibraltars stockholders in the quarter ended
September 30, 2003.
| | --------------------------------------------------------------------------------------------------------

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

| | (a)   Exhibits:
| | ---------------

| |  | 31 |  | Rule
13a-14(a) Certification
| |  | -- |  | ----------------------------

| |  | 32 |  | Section
1350 Certification
| |  | -- |  | --------------------------

| | (b)   Reports on Form 8-K:
| | --------------------------

| | Form 8-K, dated September 16, 2003, the Companys press release for annual earnings and
the financial information release relating to certain financial information for the year
ended June 28, 2003.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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# GIBRALTAR PACKAGING GROUP, INC. AND SUBSIDIARIES

# 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.

|      |  | GIBRALTAR PACKAGING GROUP, INC.              | 
|----- |  | -------------------------------------------- | 
|By:   |  | /s/   Brett E. Moller                        | 
|      |  |                                             
|      |  | Brett E. Moller                              | 
|      |  | Vice President Finance                       | 
|      |  | (Principal Financial and Accounting Officer) | 
|Date: |  | November 12, 2003                            | 

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