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Jun 30, 2024
Tredegar Q2 2024 Earnings Report
Tredegar's financial performance improved with a meaningful profit from ongoing operations, driven by strong results in PE Films and Aluminum Extrusions, and Terphane showed continued improvement.
Key Takeaways
Tredegar Corporation reported a net income of $8.8 million for Q2 2024, a significant improvement compared to the $(18.9) million loss in Q2 2023. The company's ongoing operations also showed improvement, with a net income of $10.3 million compared to a $(2.0) million loss in the same quarter last year. The rebound at the business units is having a favorable impact on overall operating results and net financial leverage.
Recognized a meaningful profit from ongoing operations for the second consecutive quarter.
Results improved sequentially compared to the previous quarter.
Net new orders and sales volume have increased since the bottom of the down cycle at Bonnell Aluminum.
EBITDA during the first half of 2024 at PE Films has been exceptional.
Tredegar
Tredegar
Tredegar Revenue by Segment
Revenue by Segment
Aluminum Extrusions Revenue
CapyFin.comPE Films Revenue
CapyFin.com Forward Guidance
EBITDA from ongoing operations performance is expected to moderate in the third quarter of 2024 as customer inventories and the Company's sales volume stabilize.
Positive Outlook
- Market indicators and recent volume improvements indicate a positive outlook for the consumer electronics market.
- The Company's analysis of recent U.S. import data of aluminum extrusions indicates that the preliminary determinations of duties are starting to have the desired behavioral impact of shifting related customer purchases back to U.S. producers.
- The liquidity available under our new asset-based lending facility has more than met our expectations.
- We continue to focus on prudently managing costs, working capital and capital spending.
- Final determinations, which are expected by the end of the third quarter of 2024, should provide an additional opportunity for Bonnell Aluminum to regain market share.
Challenges Ahead
- Completion of the sale of Terphane is contingent upon the satisfaction of customary closing conditions, including the receipt of certain competition filing approvals by authorities in Brazil and Colombia.
- There have been significant cyclical swings in the sales volume and EBITDA from ongoing operations for PE Films in the past 2.5 years, largely due to the unprecedented downturn in the display industry during the second half of 2022 and first half of 2023.
- Net new orders, which remain low compared to pre-pandemic levels, increased 17% in the second quarter of 2024 versus the second quarter of 2023 and were relatively flat compared to the first quarter of 2024.
- Lower selling prices that the Company believes are driven by excess global capacity and strong competition in Brazil, Latin America and the U.S.
- CADE's maximum deadline for completing its review is no later than November 18, 2024.
Revenue & Expenses
Visualization of income flow from segment revenue to net income