Tredegar Reports Third-Quarter Results

Tredegar Corporation (NYSE:TG) reported third-quarter net income from continuing operations of $14.5 million (45 cents per share) compared to $12.7 million (40 cents per share) in the third quarter of 2011. Results from continuing operations in the third quarter of 2012 include a net after-tax gain of $1.0 million (3 cents per share) for special items primarily associated with an unrealized gain on an investment accounted for under the fair value method, partially offset by charges associated with the shutdown of our Kentland, Indiana aluminum extrusions manufacturing facility. Results from continuing operations in the third quarter of 2011 include a net after-tax gain of $4.3 million (14 cents per share) for special items primarily related to the divestiture of our film products business in Italy and transaction expenses incurred on the acquisition of Terphane. Further details regarding special items and other non-recurring transactions included in net income from continuing operations are provided in the financial tables included with this press release.

Income from ongoing operations in the third quarter, which exclude the special items noted above, was $13.5 million (42 cents per share) versus $8.4 million (26 cents per share) in the third quarter of last year.

A summary of results for ongoing operations for the three and nine months ended September 30, 2012 and 2011 is shown below:
 
(In Millions, Except Per-Share Data)   Three Months Ended   Nine Months Ended
September 30 September 30
2012   2011 2012   2011
Sales $ 218.8   $ 202.6 $ 652.1   $ 595.1
 

Net income from continuing operations as reported under generally accepted accounting principles (GAAP)
$ 14.5 $ 12.7 $ 29.7 $ 25.5
After-tax effects of:

(Gains) losses associated with plant shutdowns, asset impairments and restructurings
.5 .1 2.3 .7
(Gains) losses from sale of assets and other   (1.5 )     (4.4 )   (2.8 )     (4.4 )
Income from ongoing operations* $ 13.5     $ 8.4   $ 29.2     $ 21.8  
 

Diluted earnings per share from continuing operations as reported under GAAP
$ .45 $ .40 $ .92 $ .79
After-tax effects per diluted share of:

(Gains) losses associated with plant shutdowns, asset impairments and restructurings
.01 - .07 .02
(Gains) losses from sale of assets and other   (.04 )     (.14 )   (.08 )     (.14 )
Diluted earnings per share from ongoing operations* $ .42     $ .26   $ .91     $ .67  
 

* Ongoing operations include operating profit (loss) of Film Products, Aluminum Extrusions and the Other segment as well as Corporate Expenses, Interest and Taxes. See Notes to the Financial Tables included with this press release for further detail regarding the items included in the reconciliation between net income and diluted earnings per share as reported under GAAP and income from ongoing operations and diluted earnings per share from ongoing operations, each being a non-GAAP financial measure. In addition, Note (h) within the Notes to the Financial Tables provides the definition of income from ongoing operations and the reasons why the measure is presented.

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