Tredegar Corporation (TG) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $1.73 million, or $ 0.05 a share in the quarter, against a net loss of $5.88 million, or $0.18 a share in the last year period. Revenue during the quarter grew 4.67 percent to $205.67 million from $196.50 million in the previous year period. Gross margin for the quarter expanded 390 basis points over the previous year period to 13.95 percent. Operating margin for the quarter period stood at positive 1.93 percent as compared to a negative 2.64 percent for the previous year period.
Operating income for the quarter was $3.97 million, compared with an operating loss of $5.19 million in the previous year period.
John D. Gottwald, Tredegars president and chief executive officer, said, "Tredegars aluminum extrusions unit, Bonnell, turned in another excellent quarter, while PE Films results were weak. Multiple transitions are taking place in our films business, which will continue for several more quarters. Terphane continues to face difficult market conditions due to large industry excess capacity." Mr. Gottwald continued, "Earlier this month we announced Bonnell’s acquisition of Futura Industries. I am optimistic that this acquisition will contribute meaningfully to Tredegar’s growth and diversification."
Operating cash flow drops significantlyTredegar Corporation has generated cash of $48.87 million from operating activities during the year, down 34.18 percent or $25.38 million, when compared with the last year. The company has spent $41.99 million cash to meet investing activities during the year as against cash outgo of $31.42 million in the last year.
The company has spent $23.75 million cash to carry out financing activities during the year as against cash outgo of $44.20 million in the last year period.
Cash and cash equivalents stood at $29.51 million as on Dec. 31, 2016, down 33.17 percent or $14.64 million from $44.16 million on Dec. 31, 2015.
Working capital declines
Tredegar Corporation has witnessed a decline in the working capital over the last year. It stood at $88.23 million as at Dec. 31, 2016, down 5.33 percent or $4.97 million from $93.20 million on Dec. 31, 2015. Current ratio was at 1.74 as on Dec. 31, 2016, down from 1.79 on Dec. 31, 2015.
Debt comes down
Tredegar Corporation has recorded a decline in total debt over the last one year. It stood at $95 million as on Dec. 31, 2016, down 8.65 percent or $9 million from $104 million on Dec. 31, 2015. Tredegar Corporation has recorded a decline in long-term debt over the last one year. Total debt was 14.59 percent of total assets as on Dec. 31, 2016, compared with 16.69 percent on Dec. 31, 2015. Debt to equity ratio was at 0.31 as on Dec. 31, 2016, down from 0.38 as on Dec. 31, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
