Tredegar Corp. (TG) Misses Q2 EPS by 11c, Sales In-Line

Tredegar Corp. (NYSE: TG) reported Q2 EPS of $0.13, $0.11 worse than the analyst estimate of $0.24. Revenue for the quarter came in at $208.86 million versus the consensus estimate of $208.97 million.

John D. Gottwald, Tredegar’s president and chief executive officer, said, “Normally my quarterly earnings release quotes are limited to providing color to the various business units’ performance. There is one issue that requires special comment this quarter. Our aluminum extrusion plant in Newnan, Georgia, experienced a very significant explosion on June 29. Five employees were injured, one of whom remains in the hospital. Our thoughts remain with him and his family. We are proud of the company’s track record of improving safety to levels superior to industry standards and very committed to taking all prudent steps to minimize the risk of a recurrence of this type of event.”

Mr. Gottwald continued, “Second quarter results, while better than the second quarter of 2015, were disappointing. In PE Films, profits were down largely due to lower surface protection volume from a slowdown in the market for products with flat screen displays, which we expect to continue to the end of this year. In addition, previously disclosed business lost and product transitions in our personal care business continue to affect comparisons to prior periods. As I discussed at the annual meeting in May, our efforts to improve sales and profits in PE Films are focused on customer relations, new product launches and R&D.”

“Terphane losses improved over last year, and results will continue to be volatile until the business environment improves.”

Mr. Gottwald added, “Finally, I would like to express my appreciation to the Bonnell team for their admirable response to the Newnan incident, as well as their continued focus on performing at a very high level.”

For earnings history and earnings-related data on Tredegar Corp. (TG) click here.

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