Tredegar Corporation's financial performance for the third quarter and the first nine months of 2024 shows significant improvements compared to the same periods in 2023. For the three months ended September 30, 2024, the company reported sales of $182.1 million, an increase from $166.2 million in Q3 2023. For the nine months ended September 30, 2024, sales reached $548.0 million, up from $535.5 million in the prior year. The increase in sales was driven by higher volumes in the PE Films segment, particularly in Surface Protection and overwrap films.
Despite the rise in sales, Tredegar reported a net loss of $3.9 million for Q3 2024, an improvement from a net loss of $50.4 million in Q3 2023. For the nine-month period, the company achieved a net income of $8.1 million, a significant turnaround from a net loss of $70.3 million in the same period last year. The improved profitability is attributed to a consolidated gross profit margin increase to 12.8% in Q3 2024, compared to 9.0% in Q3 2023, driven by better pricing and lower costs in various segments.
The Aluminum Extrusions segment saw a slight decline in net sales for the nine months, down 4.2% to $349.4 million, primarily due to lower sales volume and pass-through of lower metal costs. However, EBITDA for this segment increased to $6.2 million in Q3 2024, up from $5.1 million in Q3 2023. The PE Films segment reported a notable increase in EBITDA, reaching $5.9 million in Q3 2024, compared to $4.0 million in the same quarter of 2023.
Strategically, Tredegar announced the sale of its Flexible Packaging Films business (Terphane) to Oben Group, with the transaction expected to close soon. The sale is anticipated to result in a pre-tax loss of approximately $72.5 million in Q4 2024. Additionally, the company initiated a plan to close its PE Films technical center in Richmond, VA, with associated costs recognized in the financials.
As of September 30, 2024, Tredegar's total current assets increased to $188.3 million, while total current liabilities decreased to $239.3 million. The company maintained a minimum liquidity of $45.1 million, exceeding its financial covenant requirements. Overall, Tredegar's financial position reflects a recovery trajectory, with improved operational performance and strategic divestitures aimed at enhancing future profitability.
About TREDEGAR CORP
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