Tredegar (TG) Q2 Earnings Rise Y/Y on Strength of PE Films Unit

Core Viewpoint - Tredegar Corporation reported a significant financial turnaround in Q2 2024, achieving a net income of $8.8 million compared to a net loss of $18.9 million in Q2 2023, driven by strategic cost management and operational improvements [1][2]. Financial Performance - Revenues for Q2 2024 reached $190.2 million, an increase from $178.2 million in the same quarter of the previous year [1]. - The company’s net income per share was 26 cents, a recovery from a loss of 56 cents per share in Q2 2023 [1]. Business Segments Performance - Aluminum Extrusions (Bonnell Aluminum) - EBITDA increased to $12.9 million from $10.2 million year-over-year [3]. - Sales volume slightly decreased to 34.9 million pounds from 35.5 million pounds [3]. - Net sales were $119.4 million, down 2% from $121.8 million in the prior year [3]. - PE Films - EBITDA surged to $10.1 million from $0.8 million year-over-year [5]. - Sales volume rose significantly to 10.5 million pounds from 6.2 million pounds [5]. - Net sales increased by 83.4% to $29.2 million from $15.9 million in the previous year [5]. - Flexible Packaging Films (Terphane) - EBITDA improved to $3.2 million from $0.2 million year-over-year [6]. - Sales volume increased to 25.1 million pounds from 23.7 million pounds [6]. - Net sales rose 4% to $34.5 million from $33.2 million in the prior year [6]. Orders and Market Conditions - Net new orders increased by 17% year-over-year, although open orders remain below pre-pandemic levels [4]. Balance Sheet Position - As of June 30, 2024, cash and cash equivalents were $3.5 million, down from $10 million at the end of 2023 [7]. - Total assets increased slightly to $450.4 million from $446.5 million at the end of 2023 [7]. - Shareholders' equity rose to $160 million from $155.7 million [7]. Cash Flows - Operating cash flows for the first half of 2024 were $7.3 million, a decrease from $22.7 million in the same period of 2023 [8]. Other Developments - Tredegar is in the process of selling its Terphane business to Oben Group, with expected after-tax net cash proceeds of $85 million pending regulatory approval [9].