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Tredegar Corporation – Solid quarterly performance is evidence that Bonnell’s efforts to focus on operational excellence

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Tredegar Corporation (NYSE:TG) reported fourth-quarter net income from continuing operations of $3.8 million (12 cents per share) compared to $7.3 million (23 cents per share) in the fourth quarter of 2010. Results from continuing operations in the fourth quarter of 2011 include a net after-tax loss of $3.0 million (9 cents per share) for special items primarily related to expenses incurred in relation to the acquisition of Terphane Holdings LLC (“Terphane”). Income from ongoing operations in the fourth quarter was $6.8 million (21 cents per share) versus $8.9 million (28 cents per share) in the fourth quarter last year.

Net income from continuing operations for 2011 was $29.2 million (91 cents per share) compared to $27.0 million (83 cents per share) in 2010. Results from continuing operations in 2011 include a net after-tax gain of $0.6 million (2 cents per share) for special items primarily related to the divestiture of our film products business in Italy and expenses incurred in relation to the acquisition of Terphane. Income from ongoing operations in 2011 was $28.6 million (89 cents per share) versus $28.9 million (89 cents per share) in the fourth quarter last year. Further details regarding these special items are provided in the financial tables included with this press release.

Highlights:


  • Bonnell Aluminum’s operating profit of $0.9 million increased $2.5 million from the fourth quarter of 2010 as volume rose 11.5%.
  • Film Products successfully closed on its acquisition of Terphane Holdings LLC on October 24, 2011.
  • Film Products’ operating profit was 19% below the fourth quarter of 2010 as a result of lower volumes in surface protection materials and personal care films.
  • In Film Products, weakened consumer demand continues to adversely affect the markets for our customers’ products, especially impacting our surface protection volumes.

Nancy M. Taylor, Tredegar’s president and chief executive officer, said: “Weak demand in the LCD market, especially in the high-end TV segment, continued to adversely impact our Film Products business in the fourth quarter. We do not expect a dramatic change in the market dynamics for our surface protection business in the near-term but may see fluctuations from quarter to quarter.”

Ms. Taylor continued: “Bonnell Aluminum enjoyed profitability again this quarter, versus a loss of $1.5 million in the fourth quarter of 2010. This solid quarterly performance is evidence that Bonnell’s efforts to focus on operational excellence and develop new business opportunities, while maintaining a low breakeven point, are paying off as we experienced volume growth. Unfortunately, this does not indicate that we see evidence of a meaningful recovery in the building and construction market, particularly the residential segment. Consequently, on February 1, 2012, we announced our decision to close our plant in Kentland, Indiana.”

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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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