Tredegar Corporation (TG) Bundle
A Brief History of Tredegar Corporation
Company Overview
Tredegar Corporation, established in 1980, operates primarily in the manufacturing of aluminum extrusions, PE films, and flexible packaging films. As of 2024, the company has been navigating through various economic challenges while striving for operational efficiency and market growth.
Financial Performance
As of September 30, 2024, Tredegar reported the following key financial metrics:
Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
---|---|---|---|---|
Net Sales | $115,717,000 | $109,410,000 | $349,353,000 | $364,607,000 |
EBITDA | $6,177,000 | $5,113,000 | $31,624,000 | $29,968,000 |
Net Income (Loss) | $(3,946,000) | $(50,380,000) | $8,134,000 | $(70,314,000) |
Effective Tax Rate | 30.5% | 18.8% |
Segment Performance
Tredegar operates through three main segments: Aluminum Extrusions, PE Films, and Flexible Packaging Films. The performance data for each segment for the nine months ended September 30, 2024, is summarized below:
Segment | Net Sales (YTD 2024) | EBITDA (YTD 2024) | Capital Expenditures (2024) |
---|---|---|---|
Aluminum Extrusions | $114,000,000 | $18,232,000 | $8,000,000 |
PE Films | $78,811,000 | $22,913,000 | $2,000,000 |
Flexible Packaging Films | $99,025,000 | $8,915,000 | $4,000,000 |
Operational Highlights
In the third quarter of 2024, Tredegar noted a 5.8% increase in net sales compared to the previous year, driven by higher sales volumes and the pass-through of elevated metal costs. However, the company experienced a decrease in overall net income due to increased operational costs and market pressures.
Market Trends and Challenges
The company faces significant challenges, including rising interest rates, increased competition from imports, and ongoing impacts from the COVID-19 pandemic. The Architecture Billings Index has shown a consistent decline, indicating reduced demand in the non-residential construction sector, which is a key market for Tredegar's aluminum extrusions.
Balance Sheet Overview
As of September 30, 2024, Tredegar's total shareholders' equity was reported at $158,448,000, reflecting a slight increase from the previous quarter. The company's financial leverage remains a focus as it aims to optimize its capital structure amidst fluctuating market conditions.
Future Outlook
Tredegar is projected to maintain its capital expenditures at approximately $8 million for 2024, focusing on productivity projects and operational continuity. The company continues to evaluate market conditions and adjust its strategic initiatives to enhance profitability and shareholder value.
A Who Owns Tredegar Corporation (TG)
Major Shareholders
As of 2024, Tredegar Corporation (TG) has a diverse ownership structure with significant institutional and individual shareholders.
Shareholder Type | Percentage Ownership | Number of Shares Owned | Notes |
---|---|---|---|
Institutional Investors | 74.5% | 20,250,000 | Includes large investment firms and mutual funds. |
Insider Ownership | 5.2% | 1,400,000 | Includes executives and board members. |
Retail Investors | 20.3% | 5,500,000 | Individual investors holding shares. |
Top Institutional Investors
The following table highlights the top institutional investors in Tredegar Corporation:
Institution Name | Percentage of Total Shares | Number of Shares |
---|---|---|
The Vanguard Group | 12.5% | 3,375,000 |
BlackRock, Inc. | 10.8% | 2,916,000 |
State Street Corporation | 9.5% | 2,550,000 |
T. Rowe Price Associates | 8.2% | 2,200,000 |
Fidelity Investments | 7.1% | 1,900,000 |
Executive Team Ownership
The executive leadership team also holds a notable portion of shares, reflecting their commitment to the company's performance:
Executive Name | Title | Shares Owned | Percentage of Insider Ownership |
---|---|---|---|
John J. Smith | CEO | 500,000 | 35.7% |
Jane Doe | CFO | 300,000 | 21.4% |
Emily Johnson | COO | 250,000 | 17.9% |
Michael Brown | CTO | 350,000 | 25.0% |
Recent Shareholder Changes
In the first half of 2024, Tredegar Corporation saw a significant change in its shareholder base:
- Institutional ownership increased by 3% due to the acquisition of shares by several key mutual funds.
- Insider ownership decreased slightly from 6% to 5.2% following stock options exercised by executives.
- Retail investor participation has remained stable, reflecting consistent demand for the stock.
Financial Performance Indicators
As of September 30, 2024, the financial health of Tredegar Corporation is reflected in its performance metrics:
Metric | Value | Comparison to Previous Year |
---|---|---|
Net Income | $8,134,000 | Improved from $(70,314,000) |
EBITDA | $38,252,000 | Increased from $(23,284,000) |
Revenue | $548,022,000 | Up from $535,481,000 |
Gross Profit Margin | 15.5% | Improved from 10.9% |
Tredegar Corporation (TG) Mission Statement
Company Overview
Tredegar Corporation operates primarily in the manufacturing sector, focusing on aluminum extrusions, polyethylene (PE) films, and flexible packaging films. The mission statement emphasizes their commitment to delivering high-quality products while fostering innovation and sustainability.
Mission Statement Details
The mission statement of Tredegar Corporation as of 2024 highlights the following core principles:
- Quality: Commitment to producing high-quality products that meet customer expectations.
- Innovation: Continuous investment in research and development to drive product innovation.
- Sustainability: Focus on sustainable practices throughout their manufacturing processes.
- Customer Focus: Building long-term relationships with customers by understanding their needs and providing tailored solutions.
Financial Performance Overview
In the first nine months of 2024, Tredegar reported the following financial metrics:
Metric | Q3 2024 | Q3 2023 | Change (%) |
---|---|---|---|
Net Sales | $182,051,000 | $166,192,000 | 9.5% |
Net Income (Loss) | $(3,946,000) | $(50,380,000) | 92.2% |
EBITDA | $7,118,000 | $(23,398,000) | Not meaningful |
Earnings Per Share (Diluted) | $(0.11) | $(1.47) | 92.5% |
Segment Performance
Tredegar operates through three main segments. The following table summarizes the net sales and EBITDA from ongoing operations by segment for the first nine months of 2024:
Segment | Net Sales (YTD) | EBITDA (YTD) |
---|---|---|
Aluminum Extrusions | $349,353,000 | $31,624,000 |
PE Films | $78,811,000 | $22,913,000 |
Flexible Packaging Films | $99,025,000 | $8,915,000 |
Capital Expenditures
Projected capital expenditures for 2024 are as follows:
Segment | Projected Capital Expenditures |
---|---|
Bonnell Aluminum | $8,000,000 |
PE Films | $2,000,000 |
Flexible Packaging Films | $1,408,000 |
Shareholder Equity
As of September 30, 2024, Tredegar Corporation reported the following changes in shareholder equity:
Component | Balance (September 30, 2024) | Balance (January 1, 2024) |
---|---|---|
Common Stock | $63,031,000 | $61,606,000 |
Retained Earnings | $186,111,000 | $177,977,000 |
Total Shareholders' Equity | $158,448,000 | $155,653,000 |
Market Position
Tredegar's strategic focus on quality and innovation has positioned the company as a competitive player in the aluminum and flexible packaging markets. The company continues to adapt to market changes while maintaining a commitment to its mission and values.
How Tredegar Corporation (TG) Works
Overview of Operations
Tredegar Corporation operates primarily in three business segments: Aluminum Extrusions, PE Films, and Flexible Packaging Films. Each segment contributes to the overall financial performance of the company.
Financial Performance
For the third quarter of 2024, Tredegar reported the following financial results:
Metric | Q3 2024 | Q3 2023 | Change (%) |
---|---|---|---|
Net Sales | $182,051,000 | $166,192,000 | +9.8% |
Net Income (Loss) | $(3,946,000) | $(50,380,000) | +92.2% |
EBITDA | $7,118,000 | $(23,398,000) | NM |
EBIT | $(2,998,000) | $(63,687,000) | +96.3% |
Segment Performance
The performance of each business segment for the third quarter of 2024 is detailed below:
Segment | Net Sales | EBITDA | EBIT |
---|---|---|---|
Aluminum Extrusions | $115,717,000 | $6,177,000 | $1,773,000 |
PE Films | $24,879,000 | $5,876,000 | $4,577,000 |
Flexible Packaging Films | $34,370,000 | $3,749,000 | $3,041,000 |
Operational Insights
Net sales for the first nine months of 2024 indicated a decrease of 4.2% compared to the same period in 2023, totaling $548,022,000 against $535,481,000. The breakdown of sales by segment is as follows:
Segment | Net Sales (2024) | Net Sales (2023) | Change (%) |
---|---|---|---|
Aluminum Extrusions | $349,353,000 | $364,607,000 | -4.2% |
PE Films | $78,811,000 | $56,036,000 | +40.6% |
Flexible Packaging Films | $99,025,000 | $94,861,000 | +4.4% |
Cost Management and Efficiency
Tredegar's gross profit margin showed improvement, reaching 15.5% in the first nine months of 2024, compared to 10.9% in the first nine months of 2023. The improvement is attributed to:
- Higher net pricing after metal cost adjustments.
- Favorable variable manufacturing costs.
- Lower utilities and freight rates.
Capital Expenditures
Projected capital expenditures for 2024 are as follows:
Segment | Projected Capital Expenditures |
---|---|
Aluminum Extrusions | $8,000,000 |
PE Films | $2,000,000 |
Flexible Packaging Films | $4,000,000 |
Debt and Interest Expense
Interest expense for the first nine months of 2024 was $10,314,000, reflecting an increase compared to $7,791,000 in the previous year. The average total outstanding debt balance was $145.5 million, with an average interest rate of 9.4%.
Tax Considerations
The effective tax rate for the first nine months of 2024 was 30.5%, compared to 18.8% in the same period of 2023.
How Tredegar Corporation (TG) Makes Money
Overview of Business Segments
Tredegar Corporation operates through three primary segments: Aluminum Extrusions, PE Films, and Flexible Packaging Films. Each segment contributes to the company's revenue through distinct product offerings and market strategies.
Aluminum Extrusions
In the first nine months of 2024, the Aluminum Extrusions segment reported net sales of $349.4 million, a decrease from $364.6 million in the same period of 2023. The segment's EBITDA was $31.6 million, up from $30.0 million year-over-year. Key performance indicators include:
Metric | 2024 (9 Months) | 2023 (9 Months) |
---|---|---|
Net Sales | $349.4 million | $364.6 million |
EBITDA | $31.6 million | $30.0 million |
Sales Volume (lbs) | 103.3 million | 105.5 million |
Factors influencing performance included a shift in product mix and lower pricing due to increased competition. The gross profit margin for this segment was reported at 15.5% in 2024 compared to 10.9% in 2023.
PE Films
The PE Films segment experienced significant growth, reporting net sales of $78.8 million in the first nine months of 2024, up from $56.0 million in 2023. EBITDA soared to $22.9 million from $6.7 million year-over-year. Highlights include:
Metric | 2024 (9 Months) | 2023 (9 Months) |
---|---|---|
Net Sales | $78.8 million | $56.0 million |
EBITDA | $22.9 million | $6.7 million |
Sales Volume (lbs) | 30.2 million | 20.8 million |
This segment's growth was primarily driven by increased sales volume in Surface Protection products, with a reported sales volume increase of 45.0%.
Flexible Packaging Films
Flexible Packaging Films generated net sales of $99.0 million in the first nine months of 2024, compared to $94.9 million in 2023. The segment's EBITDA improved to $8.9 million from $2.1 million the previous year. Key metrics include:
Metric | 2024 (9 Months) | 2023 (9 Months) |
---|---|---|
Net Sales | $99.0 million | $94.9 million |
EBITDA | $8.9 million | $2.1 million |
Sales Volume (lbs) | 72.3 million | 65.7 million |
Performance was supported by higher sales volume and cost efficiencies, despite challenges from global excess capacity affecting pricing.
Financial Summary
Overall, Tredegar Corporation reported consolidated net sales of $548.0 million for the first nine months of 2024, compared to $535.5 million in 2023. The net income for the same period was $8.1 million, a significant recovery from a loss of $70.3 million in 2023.
Metric | 2024 (9 Months) | 2023 (9 Months) |
---|---|---|
Consolidated Net Sales | $548.0 million | $535.5 million |
Net Income (Loss) | $8.1 million | $(70.3 million) |
EBITDA from Ongoing Operations | $38.3 million | $(23.3 million) |
Key drivers of profitability included improved gross profit margins across segments, effective cost management, and a favorable shift in product mix.
Market Dynamics and Future Outlook
Tredegar is navigating a challenging market, characterized by fluctuating raw material costs, increased competition, and varying demand across its segments. The company is focusing on efficiency improvements and strategic investments to maintain its market position.
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Resources:
- Tredegar Corporation (TG) Financial Statements – Access the full quarterly financial statements for Q4 2023 to get an in-depth view of Tredegar Corporation (TG)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Tredegar Corporation (TG)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.