Tredegar Corp. (TG) filed Quarterly Report for the period ended 2009-09-30.
Tredegar Industries Inc. is engaged directly or through subsidiaries in the manufacture of plastic films vinyl extrusions and aluminumextrusions. Tredegar also has interests in various technologies including rational drug design research and computer software. Tredegar Corp. has a market cap of $457.1 million; its shares were traded at around $13.45 with a P/E ratio of 15.5 and P/S ratio of 0.5. The dividend yield of Tredegar Corp. stocks is 1.2%. Tredegar Corp. had an annual average earning growth of 9.9% over the past 5 years.
Highlight of Business Operations:
Film Products. Third-quarter net sales in Film Products were $123.4 million, down 5.9% from $131.2 million in the third quarter of 2008, while operating profit from ongoing operations increased to $21.8 million in the third quarter of 2009 from $10.5 million in 2008. Volume was 55.2 million pounds in the third quarter of 2009, down 1.5% from 56.1 million pounds in the third quarter of 2008. Net sales, operating profit and volume in the second quarter of 2009 were $107.8 million, $14.2 million and 49.6 million pounds, respectively.
The company estimates that the impact on operating profit of the lag in the pass-through of changes in average resin costs was a negative $1.3 million and a negative $4.0 million in the third quarters of 2009 and 2008, respectively. The estimated impact of resin pass-through lag was a positive $1.7 million in the first nine months of 2009 and a negative $7.2 million in the first nine months of 2008. The company estimates that changes in the U.S. dollar value of currencies for operations outside of the U.S. had an unfavorable impact on operating profit of $857,000 in the third quarter of 2009 compared to the third quarter of 2008, and an unfavorable impact of approximately $2.4 million in the first nine months of 2009 compared with the first nine months of 2008.
Capital expenditures in Film Products were $9.1 million and $9.5 million in the first nine months of 2009 and 2008, respectively, and are projected to be approximately $15 million in 2009. Depreciation expense was $24.0 million in the first nine months of 2009 compared with $26.3 million in the first nine months of last year, and is projected to be approximately $33 million in 2009.
Aluminum Extrusions. Third-quarter net sales from continuing operations in Aluminum Extrusions were $47.6 million, down 48.3% from $92.1 million in the third quarter of 2008. Operating losses from ongoing U.S. operations were $927,000 for the third quarter of 2009, a change of $4.8 million from operating profits of $3.9 million for the third quarter of 2008. Volume from continuing operations decreased to 24.7 million pounds in the third quarter of 2009, down 30.0% from 35.3 million pounds in the third quarter of 2008.
Net sales in Aluminum Extrusions for the first nine months of 2009 declined 49.6% to $139.1 million from $275.8 million in the first nine months of 2008. Operating losses from ongoing operations were $2.1 million for the first nine months of 2009, a $9.9 million change from operating profits of $7.8 million for the same period in 2008. Volume was 72.4 million pounds in the first nine months of 2009, down 32.9% from 107.9 million pounds in the first nine months of 2008.
Capital expenditures for continuing operations in Aluminum Extrusions were $14.6 million in the first nine months of 2009 compared with $4.3 million in the first nine months of last year. Capital expenditures are projected to be approximately $21 million in 2009, of which $17 million relates to the 18-month project to expand the capacity at the Carthage, Tennessee manufacturing facility. This new capacity will be dedicated to serving customers in the non-residential construction sector. Depreciation expense was $5.6 million in the first nine months of 2009 compared with $6.0 million in the first nine months of last year, and is projected to be approximately $7.6 million in 2009.
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