Tredegar Corporation Reports Second Quarter 2024 Financial Results
Intellectia.AI Updated: 2024-08-08
Tredegar Corporation Reports Second Quarter 2024 Financial Results
Tredegar Corporation (NYSE:TG) today reported its financial results for the second quarter ended June 30, 2024.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | Q1 2024 | Consensus Estimate |
|---|---|---|---|---|
| Earnings Per Share (EPS) | $0.26 | $(0.56) | Not provided | $0.00 |
| Net Income (Loss) | $8.8M | $(18.9M) | Not provided | Not provided |
| Net Income (Loss) - Ongoing Operations | $10.3M | $(2.0M) | Not provided | Not provided |
Interpretation : Tredegar Corporation returned to profitability in the second quarter of 2024 with a net income of $8.8 million, a significant improvement from the $18.9 million loss in the same quarter last year. Earnings per share beat consensus estimates, showcasing a strong turnaround.
Revenue Performance by Segment
| Segment | Metric | Q2 2024 | Q2 2023 | Q1 2024 |
|---|---|---|---|---|
| Aluminum Extrusions | EBITDA (Million $) | $12.9M | $10.2M | $12.5M |
| Sales Volume (Million Pounds) | 34.9M | 35.5M | 33.8M | |
| Open Orders (Million Pounds) | 14M | 20M | 15M | |
| PE Films | EBITDA (Million $) | $10.1M | $0.8M | $6.9M |
| Sales Volume (Million Pounds) | 10.5M | 6.2M | 10.0M | |
| Flexible Packaging Films | EBITDA (Million $) | $3.2M | $0.2M | $2.0M |
| Sales Volume (Million Pounds) | 25.1M | 23.7M | 22.0M |
Interpretation : Each segment demonstrated solid performance, with Aluminum Extrusions experiencing a slight decline in sales volume year-over-year but a marginal increase quarter-over-quarter. PE Films showed substantial EBITDA improvement year-over-year due to increased demand in Surface Protection. Flexible Packaging Films also reported better performance, indicating a steady recovery across all segments.
Key Operational Data
| Metric | Q2 2024 | Q2 2023 | Q1 2024 |
|---|---|---|---|
| Net New Orders (Aluminum) | +17% YoY | Not provided | Flat QoQ |
| Net Financial Leverage | 2.5x | 3.9x | 3.8x |
Interpretation : The increase in net new orders for Aluminum Extrusions and improvement in net financial leverage are positive indicators of the company's operational recovery.
Management Comments
John Steitz, Tredegar's President and CEO, remarked: "For the second quarter in a row, we recognized meaningful profit from ongoing operations after suffering a period of losses. We believe the bottom of the recent severe down cycle occurred in the third quarter of 2023, and we are seeing a rebound in our business units."
Dividends & Share Repurchase Program
No information on dividends or share repurchase programs was provided in the earnings release.
Forward Guidance
The company did not provide forward guidance in the earnings release.
Stock Price Movement
After the event, Tredegar Corporation's stock price increased by 2.87%.
Summary : Tredegar Corporation reported a strong second quarter in 2024, marking a notable recovery from the losses experienced in the previous year. All segments demonstrated improvement, contributing to the overall positive financial performance. The company remains focused on managing costs and capital spending while awaiting further improvements in order intake, particularly for Aluminum Extrusions. Forward guidance was not provided, leaving investors to anticipate future updates.
