Tredegar Reports Third-Quarter 2016 Results

Tredegar Corporation (NYSE:TG, also the "Company" or "Tredegar") today reported third-quarter financial results for the period ended September 30, 2016.

Third quarter 2016 net income was $12.0 million ($0.37 per share) compared with net loss of $36.7 million ($1.13 per share) in the third quarter of 2015. Net income from ongoing operations, which excludes the special items shown in the table below, was $7.4 million ($0.22 per share) in the third quarter of 2016 compared with $9.3 million ($0.28 per share) in the third quarter of 2015. 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 and nine months ended September 30, 2016 and 2015, is shown below:
         
(in millions, except per share data)  

Three Months EndedSeptember 30,
 

Nine Months EndedSeptember 30,
    2016   2015   2016   2015
Net income (loss) as reported under GAAP $ 12.0   $ (36.7 ) $ 22.7   $ (26.3 )
After-tax effects of:
Losses associated with plant shutdowns, asset impairments and restructurings 1.1 1.5 2.7 1.7
(Gains) losses from sale of assets and other ** (5.7 ) (6.1 ) 2.2
Goodwill impairment charge       44.5         44.5  
Net income from ongoing operations *   $ 7.4     $ 9.3     $ 19.3     $ 22.1  
 
Earnings (loss) per share as reported under GAAP (diluted) $ 0.37 $ (1.13 ) $ 0.69 $ (0.81 )
After-tax effects per diluted share of:
Losses associated with plant shutdowns, asset impairments and restructurings 0.03 0.05 0.08 0.05
(Gains) losses from sale of assets and other ** (0.18 ) (0.18 ) 0.07
Goodwill impairment charge       1.36         1.36  
Earnings per share from ongoing operations (diluted) *   $ 0.22     $ 0.28     $ 0.59     $ 0.67  

*
 

See Notes to the Financial Tables in this press release for further details regarding the special items that reconcile net income (loss) to net income from ongoing operations and earnings (loss) per share to earnings per share from ongoing operations.

**

Includes $5.7 million ($0.18 per share) net tax benefit from excess foreign tax credits related to the repatriation of cash from operations in Brazil. See Note (d) in the Notes to Financial Tables for additional details.

Highlights for third quarter 2016 include:
  • Operating profit from ongoing operations for Bonnell Aluminum of $9.4 million was $2.2 million higher than the third quarter of 2015
  • Operating profit from ongoing operations for PE Films of $9.0 million was $0.7 million lower than the third quarter of 2015
  • Operating profit from ongoing operations for Flexible Packaging Films declined

John D. Gottwald, Tredegar's president and chief executive officer, said, "Performance for the quarter was mixed. Bonnell Aluminum had another quarter of strong profit growth, although we expect to see a seasonal slowdown over the next two quarters."

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