Tredegar Reports First Quarter 2024 Results

First Quarter Financial Results Highlights
*Earnings before interest, taxes, depreciation and amortization (“EBITDA”) from ongoing operations for Aluminum Extrusions was $12.5 million in the first quarter of 2024 versus $14.6 million in the first quarter of last year and $8.0 million in the fourth quarter of 2023.
-Sales volume was 33.8 million pounds in the first quarter of 2024 versus 37.6 million pounds in the first quarter of last year and 32.9 million pounds in the fourth quarter of 2023.
-Open orders at the end of the first quarter of 2024 were approximately 15 million pounds (versus 27 million pounds in the first quarter of 2023 and 14 million pounds at the end of the fourth quarter of 2023). Net new orders increased 61% and 12% in the first quarter of 2024 versus the first quarter of 2023 and fourth quarter of 2023, respectively.
*EBITDA from ongoing operations for PE Films was $6.9 million in the first quarter of 2024 versus $1.8 million in the first quarter of 2023 and $4.5 million in the fourth quarter of 2023. Sales volume was 10.0 million pounds in the first quarter of 2024 versus 7.4 million pounds in the first quarter of 2023 and 8.5 million pounds in the fourth quarter of 2023.
*EBITDA from ongoing operations for Flexible Packaging Films (also referred to as “Terphane”) was $2.0 million during the first quarter of 2024 versus $1.4 million in the first quarter of 2023 and $2.3 million during the fourth quarter of 2023. Sales volume was 22.0 million pounds in the first quarter of 2024 versus 19.8 million pounds in the first quarter 2023 and 22.8 million pounds in the fourth quarter of 2023. See the Status of Agreement to Sell Terphane section of this report for information on the sale of Terphane.

John Steitz, Tredegar’s president and chief executive officer, said, “During the first quarter of 2024, we recognized a meaningful profit from ongoing operations for the first time since the first quarter of last year. The bottom of the recent severe down cycle for Bonnell, which we believe was a residual impact of the pandemic and started in the second half of 2022, appears to have occurred in the third quarter of 2023. Net new orders and sales volume have increased sequentially in each quarter since that time. In addition, favorable preliminary determinations have been made by U.S. authorities regarding a trade case backed by a coalition of members of the Aluminum Extruders Council. PE Films EBITDA during the first quarter of 2024 was exceptional at $6.9 million compared with $8.6 million during the last six months of 2023.”

Mr. Steitz further stated, “The process to complete the closing of our agreement to sell Terphane continues to advance as planned, including the review required by competition authorities in Brazil. Meanwhile, the recovery that we believe is underway in our business units is having a favorable impact on overall operating results and improving our outlook of net financial leverage, which we believe peaked at 3.9x Credit EBITDA at the end of the fourth quarter of 2023 and was 3.8x at the end of the first quarter of this year. The liquidity available under our new asset-based lending facility has met our expectations in supporting us through the downturn. We continue to focus on prudently managing costs, working capital and capital spending.”
details at: https://ir.tredegar.com/news-releases/news-release-details/tredegar-reports-first-quarter-2024-results

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