

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


                                  SCHEDULE 13G
                    Under the Securities Exchange Act of 1934
                                Amendment No. 3



                           Caraustar Industries, Inc.
-------------------------------------------------------------------------------
                                (Name of Issuer)



                          Common Stock, $0.10 par value
-------------------------------------------------------------------------------
                         (Title of Class of Securities)


                                    140909102
                  --------------------------------------------
                                 (CUSIP Number)



                                December 31, 2004
-------------------------------------------------------------------------------
             (Date of Event Which Requires Filing of this Statement)


Check the  appropriate box to designate the rule pursuant to which this Schedule
is filed:

[X] Rule 13d-1(b)

[_] Rule 13d-1(c)

[_] Rule 13d-1(d)




                                Page 1 of 8 pages
<PAGE>


-----------------------
  CUSIP No. 140909102                   13G
-----------------------

------------------------------------------------------------------------------
 1.   Name of Reporting Person
      I.R.S. Identification No. of above Person

           Goldman Sachs Asset Management, L.P.


------------------------------------------------------------------------------
 2.   Check the Appropriate Box if a Member of a Group
                                                                (a) [_]
                                                                (b) [_]

------------------------------------------------------------------------------
 3.   SEC Use Only



------------------------------------------------------------------------------
 4.   Citizenship or Place of Organization

           Delaware

------------------------------------------------------------------------------
                     5.   Sole Voting Power

     Number of                 1,085,339

      Shares        ----------------------------------------------------------
                     6.   Shared Voting Power
   Beneficially
                               1,906,402
     Owned by
                    ----------------------------------------------------------
       Each          7.   Sole Dispositive Power

    Reporting                  1,835,936

      Person        ----------------------------------------------------------
                     8.   Shared Dispositive Power
       With:
                               1,906,402

------------------------------------------------------------------------------
 9.   Aggregate Amount Beneficially Owned by Each Reporting Person

           3,742,338

------------------------------------------------------------------------------
10.   Check if the Aggregate Amount in Row (9) Excludes Certain Shares

                                                                    [_]

------------------------------------------------------------------------------
11.   Percent of Class Represented by Amount in Row (9)

          13.1%

------------------------------------------------------------------------------
12.   Type of Reporting Person

           IA

------------------------------------------------------------------------------




                               Page 2 of 8 pages
<PAGE>

-----------------------
  CUSIP No. 104909102                   13G
-----------------------

------------------------------------------------------------------------------
 1.   Name of Reporting Person
      I.R.S. Identification No. of above Person

           Goldman Sachs Trust on behalf of
           Goldman Sachs Small Cap Value Fund


------------------------------------------------------------------------------
 2.   Check the Appropriate Box if a Member of a Group
                                                                (a) [_]
                                                                (b) [_]

------------------------------------------------------------------------------
 3.   SEC Use Only



------------------------------------------------------------------------------
 4.   Citizenship or Place of Organization

           Delaware

------------------------------------------------------------------------------
                     5.   Sole Voting Power

     Number of                 0

      Shares        ----------------------------------------------------------
                     6.   Shared Voting Power
   Beneficially
                               1,906,402
     Owned by
                    ----------------------------------------------------------
       Each          7.   Sole Dispositive Power

    Reporting                  0

      Person        ----------------------------------------------------------
                     8.   Shared Dispositive Power
       With:
                               1,906,402

------------------------------------------------------------------------------
 9.   Aggregate Amount Beneficially Owned by Each Reporting Person

           1,906,402

------------------------------------------------------------------------------
10.   Check if the Aggregate Amount in Row (9) Excludes Certain Shares

                                                                    [_]

------------------------------------------------------------------------------
11.   Percent of Class Represented by Amount in Row (9)

           6.7%

------------------------------------------------------------------------------
12.   Type of Reporting Person

           IV

------------------------------------------------------------------------------



                                Page 3 of 8 pages

<PAGE>

Item 2(a).         Name of Persons Filing:
                   Goldman  Sachs  Asset  Management,  L.P.  and
                   Goldman  Sachs  Trust on behalf of
                   Goldman Sachs Small Cap Value Fund

Item 4.            Ownership.*

          (a).     Amount beneficially owned:
                   See the response(s) to Item  9 on the attached cover page(s).

          (b).     Percent of Class:
                   See the response(s) to Item 11 on the attached cover page(s).

          (c).     Number of shares as to which such person has:

                   (i).     Sole power to  vote or to direct  the vote:  See the
                            response(s) to Item 5 on the attached cover page(s).

                   (ii).    Shared power to vote or to direct the vote:  See the
                            response(s) to Item 6 on the attached cover page(s).

                   (iii).   Sole power to  dispose or to direct  the disposition
                            of:  See the response(s) to  Item 7  on the attached
                            cover page(s).

                   (iv).    Shared power to dispose or to direct the disposition
                            of:  See the response(s) to  Item 8  on the attached
                            cover page(s).

Item 10.           Certification.
                   By signing  below I certify that, to the best of my knowledge
                   and belief,  the  securities  referred to above were acquired
                   and are held in the ordinary  course of business and were not
                   acquired  and are not  held  for the  purpose  of or with the
                   effect of changing or  influencing  the control of the issuer
                   of the  securities  and were not acquired and are not held in
                   connection with or as a participant in any transaction having
                   that purpose or effect.


--------------------------
     (1) In accordance with Securities and Exchange  Commission  ("SEC") Release
No.   34-39538   (January  12,  1998),   this  filing  reflects  the  securities
beneficially owned by Goldman Sachs Asset Management, L.P. ("GSAM LP"). GSAM LP,
an investment advisor, disclaims beneficial ownership of any securities managed,
on GSAM LP's behalf, by third parties.





                              Page 4 of 8 pages
<PAGE>


                                    SIGNATURE


            After reasonable inquiry and to the best of my knowledge
            and belief,  I certify that the information set forth in
            this statement is true, complete and correct.


Date:  February 9, 2005


                                GOLDMAN SACHS ASSET MANAGEMENT, L.P.


                                By: /s/ Ted Chang
                                   ----------------------------------------
                                Name:   Ted Chang
                                Title:  Attorney-in-fact





                                GOLDMAN SACHS TRUST on behalf of
                                Goldman Sachs Small Cap Value Fund


                                By: /s/ Ted Chang
                                  -------------------------------------------
                                Name:   Ted Chang
                                Title:  Attorney-in-fact



                              Page 5 of 8 pages
<PAGE>


                                INDEX TO EXHIBITS


Exhibit No.   Exhibit
-----------   -------
99.1                  Joint Filing Agreement, dated February 9, 2005, between
                      Goldman Sachs Asset Management, L.P. and Goldman Sachs
                      Trust on behalf of Goldman Sachs Small Cap Value Fund

99.2                  Power of Attorney, dated January 9, 2004, relating to
                      Goldman Sachs Trust on behalf of GS Small Cap Value Fund



                              Page 6 of 8 pages

<PAGE>
                                                                 EXHIBIT (99.1)




                             JOINT FILING AGREEMENT

In accordance with Rule 13d-1(k)(1)  promulgated  under the Securities  Exchange
Act of 1934,  the  undersigned  agree to the  joint  filing  of a  Statement  on
Schedule 13G  (including  any and all  amendments  thereto)  with respect to the
common stock, $0.10 par value, of Caraustar  Industries,  Inc. and further agree
to the filing of this agreement as an Exhibit thereto.  In addition,  each party
to this  Agreement  expressly  authorizes  each other party to this Agreement to
file on its behalf any and all amendments to such Statement on Schedule 13G.

Date:  February 9, 2005



                                  GOLDMAN SACHS ASSET MANAGEMENT, L.P.



                                  By: /s/ Ted Chang
                                  ----------------------------------------
                                  Name:   Ted Chang
                                  Title:  Attorney-in-fact




                                  GOLDMAN SACHS TRUST on behalf of Goldman Sachs
                                  Small Cap Value Fund


                                  By: /s/ Ted Chang
                                  ----------------------------------------
                                  Name:   Ted Chang
                                  Title:  Attorney-in-fact



                               Page 7 of 8 pages

<PAGE>
                                                                  EXHIBIT (99.2)


                               POWER OF ATTORNEY


     KNOW ALL PERSONS BY THESE PRESENTS that GOLDMAN SACHS TRUST (the "Company")
does hereby make,  constitute and appoint each of Roger S.  Begelman,  Edward T.
Joel  Saskia  Brookfield  Martin and Ted Chang,  (and any other  employee of The
Goldman Sachs Group, Inc. or one of its affiliates  designated in writing by one
of the attorneys-in-fact), acting individually, its true and lawful attorney, to
execute and deliver in its name and on its behalf  whether the Company is acting
individually or as representative of others,  any and all filings required to be
made by the Company under the Securities Exchange Act of 1934, (as amended,  the
"Act"),  with respect to securities which may be deemed to be beneficially owned
by  the   Company   under  the  Act,   giving  and   granting   unto  each  said
attorney-in-fact  power and authority to act in the premises as fully and to all
intents and purposes as the Company might or could do if  personally  present by
one of its authorized signatories, hereby ratifying and confirming all that said
attorney-in-fact shall lawfully do or cause to be done by virtue hereof.

     THIS POWER OF ATTORNEY  shall remain in full force and  effect until either
revoked  in  writing  by the  undersigned  or until  such time as the  person or
persons  to whom  power of attorney  has been  hereby granted  cease(s) to be an
employee of The Goldman Sachs Group, Inc. or one of its affiliates.

     IN WITNESS  WHEREOF,  the undersigned has duly subscribed these presents as
of January 9, 2004.


GOLDMAN SACHS TRUST


By: s/ Howard Surloff
---------------------------
Name:  Howard Surloff
Title: Managing Director







                                Page 8 of 8 pages
