Tredegar Reports First Quarter 2023 Results

First quarter 2023 net income (loss) was $(1.0) million ($(0.03) per diluted share) compared to net income (loss) of $16.4 million ($0.49 per diluted share) in the first quarter of 2022. Net income (loss) from ongoing operations, which excludes special items, was $2.5 million ($0.07 per diluted share) in the first quarter of 2023 compared with $16.8 million ($0.50 per diluted share) in the first quarter of 2022. 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 months ended March 31, 2023 and 2022, is provided in Note (a) to the Financial Tables in this press release.

First Quarter Financial Results Highlights
*Earnings before interest, taxes, depreciation and amortization (“EBITDA”) from ongoing operations for Aluminum Extrusions of $14.6 million declined $9.3 million primarily due to an abnormally strong first quarter of 2022. Sales volume of 37.6 million pounds was consistent with the weak fourth quarter of 2022.
*EBITDA from ongoing operations for PE Films of $1.8 million was $5.2 million lower than the strong first quarter of 2022. Sales volume of 7.4 million pounds improved by 1.0 million pounds compared with the weak average third and fourth quarter volume levels in 2022.
*EBITDA from ongoing operations for Flexible Packaging Films of $1.4 million was $3.7 million lower than the first quarter of 2022 mainly due to soft market demand during the first quarter of 2023.

John Steitz, Tredegar’s president and chief executive officer, said, “Our businesses and markets continue to suffer from a significant slowdown that has been exacerbated by customer inventory corrections, which has resulted in excessive inventory levels for us, too. The timing of a recovery is uncertain, especially for Bonnell Aluminum and the Surface Protection component of PE Films.”

Mr. Steitz continued, “The combination of excessive inventories and decline in sales and EBITDA from ongoing operations resulted in negative cash flow from operations after capital expenditures and dividends in each of the last three quarters, driving up our debt net of cash and net leverage ratio. In addition, we expect to make a final payment of approximately $28 million to settle the pension plan in the fourth quarter of this year. We are very focused on reducing our inventories and working capital to normal operating levels and managing costs and capital spending during this downturn. However, if a recovery in our businesses and markets doesn’t occur early in the third quarter and we are unable to get our working capital to normal operating levels, we may also need to take action to reduce or suspend our current quarterly dividend of 13 cents per share as an additional measure to help control our financial leverage.”
details at: https://ir.tredegar.com/news-releases/news-release-details/tredegar-reports-first-quarter-2023-results

Related Posts

BillerudKorsnäs unit in Karlsborg now back to full production

During the night between September 5th and 6th, there was a fire in one of the buildings at BillerudKorsnäs’ production unit in Karlsborg. The production was stopped as a consequence of the fire but is now back to full speed after a successful work to make the unit ready for production. BillerudKorsnäs estimates that the impact from the fire on Q3 results will be approximately SEK 35 million. "Our teams and suppliers have made good efforts to overcome the consequences of the fire and we are glad that we can inform our customers of this quick start-up", says Per Lindberg, President and CEO of BillerudKorsnäs. The production unit in Karlsborg manufactures sack and kraft paper as well as market pulp for the Packaging Paper business area and has a production capacity of approximately 300,000 tonnes per year.

Kellogg’s to trial recyclable paper liners in cereal boxes (twosides.info/uk)

Kellogg’s, in partnership with Tesco, have announced that it will trial paper liners within cereal boxes in a select number of stores from January 2022. According to the company, the plastic inner liner in cereal boxes is not currently widely accepted in kerbside recycling. The new paper liner is reportedly recyclable and will make Kellogg’s entire cereal packaging paper-based, as the cereal’s outer card packaging is already fully recyclable. The new packaging, developed by Kellogg’s packaging technologists, is apparently suitable for the process of filling and sealing bags inside of cereal boxes that takes place at the company’s factory, as well as for transporting the cereal to retailers.

Aptar Again Receives Platinum Rating from EcoVadis

Aptar has again achieved the Platinum level rating in recognition of its sustainability efforts from EcoVadis. The Platinum rating places Aptar among the top 1% of the more than 90,000 companies rated by EcoVadis across all industries. “We are extremely proud to once again achieve Platinum status from EcoVadis due to our continued progress in key sustainability areas of environmental stewardship, labor and human rights, ethics and sustainable procurement,” said Stephan B. Tanda, Aptar President and CEO. “This recognition reflects our shared values: to act ethically and responsibly, to foster a diverse team and capitalize on this strength, to care for each other and our planet, to source renewable energy, and to further a circular economy where packaging is reused and recycled.”
Back To Top
×Close search
Search