Tredegar Reports Third Quarter 2019 Results

Tredegar Corporation (NYSE:TG, also the “Company” or “Tredegar”) today reported third quarter financial results for the period ended September 30, 2019.

The Company recognized net income of $17.1 million ($0.51 per share) in the third quarter of 2019 compared to a net loss of $34.2 million ($1.03 per share) in the third quarter of 2018. Net income from ongoing operations, which excludes special items, was $11.4 million ($0.34 per share) in the third quarter of 2019 compared with $8.6 million ($0.26 per share) in the third quarter of 2018. A reconciliation of net income (loss), a financial measure calculated in accordance with U.S. generally accepted accounting principles (“GAAP”), to net income from ongoing operations, a non-GAAP financial measure, for the three and nine months ended September 30, 2019 and 2018, is provided in Note (a) of the Notes to the Financial Tables in this press release.

Third Quarter Financial Results Highlights
• Operating profit from ongoing operations for Bonnell Aluminum of $12.1 million was $0.4 million higher than the third quarter of 2018
• Operating profit from ongoing operations for PE Films of $6.9 million was $2.7 million higher than the third quarter of 2018
• Operating profit from ongoing operations for Flexible Packaging Films of $4.0 million was $0.4 million higher than the third quarter of 2018

John Steitz, Tredegar’s president and chief executive officer said, “The aluminum extrusions industry and Bonnell Aluminum continue to experience softness in sales volume, with higher selling prices at Bonnell helping to offset the adverse impact on profits. The Surface Protection component of PE Films is on track to achieving record profitability this year, while continuing to focus on obtaining new business and productivity improvements to offset a previously disclosed customer product transition.”

Mr. Steitz continued, “Our Personal Care component of PE Films is challenged with achieving sales growth and cost reductions to return to profitability. At Terphane, future profit growth will mostly depend on our ability to continue to increase our value-added product sales and customer service levels. Lastly, Tredegar’s overall cash generation for the first nine months of 2019 was exceptional with debt net of cash declining by $36 million.”

Third Quarter 2019 Results vs. Third Quarter 2018 Results
Net sales (sales less freight) in the third quarter of 2019 decreased versus 2018 primarily due to lower sales volume and the passthrough of lower metal costs, partially offset by an increase in average selling prices to cover higher operating costs. Sales volume in the third quarter of 2019 decreased by 9.2% versus 2018. This volume decline, in addition to booking and backlog information for Bonnell Aluminum and industry data, indicates softness across all key end-use markets.

Operating profit from ongoing operations in the third quarter of 2019 increased by $0.4 million in comparison to the third quarter of 2018 due to higher pricing ($7.7 million), partially offset by lower volumes ($3.5 million), higher labor and employee-related expenses ($2.3 million), higher supplies, maintenance and other operating costs ($1.1 million) and higher freight expense ($0.4 million).

First Nine Months 2019 Results vs. First Nine Months 2018 Results
Net sales in the first nine months of 2019 decreased versus 2018 primarily due to lower volume and the passthrough of lower metal costs, partially offset by an increase in average selling price to cover higher operating costs.

Operating profit from ongoing operations in the first nine months of 2019 increased by $3.7 million in comparison to the first nine months of 2018 primarily due to higher pricing ($18.6 million), partially offset by lower volume ($2.7 million), increased labor and employee-related expenses ($6.3 million), higher supplies, maintenance, utilities and other operating costs ($3.2 million), increased freight costs ($1.7 million), and increased general and administrative expenses ($1.0 million).
more detail at: http://ir.tredegar.com/news-releases/news-release-details/tredegar-reports-third-quarter-2019-results

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