Tredegar Reports Fourth-Quarter and Full Year 2018 Results
RICHMOND, Va.--(BUSINESS WIRE)--Tredegar Corporation (NYSE:TG, also the “Company” or “Tredegar”) today reported fourth quarter and full year financial results for the period ended December 31, 2018.
Fourth quarter 2018 net income was $26.2 million ($0.79 per share) compared with net loss of $17.9 million ($0.54 per share) in the fourth quarter of 2017. Net income from ongoing operations, which excludes special items, was $14.2 million ($0.43 per share) in the fourth quarter of 2018 and $6.4 million ($0.20 per share) in the fourth quarter of 2017. Full year 2018 net income was $24.8 million ($0.75 per share) compared with net income of $38.3 million ($1.16 per share) in 2017. Net income from ongoing operations, which excludes special items, was $47.3 million ($1.43 per share) in 2018 and $30.1 million ($0.91 per share) in 2017. 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 twelve months ended December 31, 2018 and 2017, is provided in Note (a) of the Notes to the Financial Tables in this press release.
Highlights for ongoing operations for the fourth quarter of 2018:
- Operating profit from ongoing operations for PE Films of $9.3 million was $1.3 million lower than the fourth quarter of 2017
- Operating profit from ongoing operations for Aluminum Extrusions of $13.5 million was $4.3 million higher than the fourth quarter of 2017
- Operating profit from ongoing operations for Flexible Packaging Films of $3.3 million was $2.5 million higher than the fourth quarter of 2017
John D. Gottwald, Tredegar’s president and chief executive officer, said, “Tredegar’s earnings for the fourth quarter and 2018 were solid. Going forward, I’m pleased with the strategies, actions and outlook for Bonnell, Bright View, Surface Protection and Terphane.”
Mr. Gottwald continued, “The near-term uncertainty relates to Personal Care’s transition from one large customer to new products with new customers, especially in elastic films. We know we’ll see a large negative income impact in 2019 and 2020 during this transition, but I am hopeful that a more diversified and profitable business will emerge. John Steitz’s expertise will be particularly helpful in supporting Personal Care through this transition. I have great confidence in John’s ability to lead Tredegar forward.”
On February 28, 2019, the Company announced that Mr. Gottwald was retiring as its president and chief executive officer. He will continue to be a member of Tredegar’s board of directors. Tredegar’s board of directors elected John M. Steitz to succeed Mr. Gottwald as president and chief executive officer effective March 18, 2019. Mr. Steitz has been a director of Tredegar since 2017. OPERATIONS REVIEW