Tredegar Corporation (TG) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $12.05 million, or $ 0.37 a share in the quarter, against a net loss of $36.72 million, or $1.13 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $7.40 million, or $0.22 a share compared with $9.30 million or $0.28 a share, a year ago. Revenue during the quarter dropped 7.07 percent to $208.09 million from $223.92 million in the previous year period. Gross margin for the quarter expanded 148 basis points over the previous year period to 16.49 percent. Operating margin for the quarter period stood at positive 4.93 percent as compared to a negative 14.49 percent for the previous year period.
Operating income for the quarter was $10.26 million, compared with an operating loss of $32.44 million in the previous year period.
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." Mr. Gottwald added, "Profits in our PE Films segment were down in comparison to last year, with results still impacted by business lost in Personal Care. Looking forward, we believe that our customer relationships in Personal Care are improving, which could provide longer term opportunities." Mr. Gottwald continued, "Terphane’s results continue to be volatile, with pricing and margins squeezed by significant excess industry capacity and difficult economic conditions in Brazil."
Operating cash flow improves marginally
Tredegar Corporation has generated cash of $34.42 million from operating activities during the nine month period, up 3.24 percent or $1.08 million, when compared with the last year period. The company has spent $29.51 million cash to meet investing activities during the nine month period as against cash outgo of $22.43 million in the last year period.
The company has spent $23.52 million cash to carry out financing activities during the nine month period as against cash outgo of $10.66 million in the last year period.
Cash and cash equivalents stood at $28.36 million as on Sep. 30, 2016, down 39.16 percent or $18.25 million from $46.61 million on Sep. 30, 2015.
Working capital drops significantly
Tredegar Corporation has witnessed a decline in the working capital over the last year. It stood at $92.05 million as at Sep. 30, 2016, down 25.37 percent or $31.29 million from $123.34 million on Sep. 30, 2015. Current ratio was at 1.74 as on Sep. 30, 2016, down from 2.10 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 23 days for the quarter from 40 days for the last year period. Days sales outstanding went up to 50 days for the quarter compared with 46 days for the same period last year.
Days inventory outstanding has decreased to 19 days for the quarter compared with 34 days for the previous year period. At the same time, days payable outstanding went up to 46 days for the quarter from 39 for the same period last year.
Debt comes down significantly
Tredegar Corporation has recorded a decline in total debt over the last one year. It stood at $91.75 million as on Sep. 30, 2016, down 31.53 percent or $42.25 million from $134 million on Sep. 30, 2015. Tredegar Corp has recorded a decline in long-term debt over the last one year. It stood at $91.75 million as on Sep. 30, 2016, down 31.53 percent or $42.25 million from $134 million on Sep. 30, 2015. Total debt was 13.99 percent of total assets as on Sep. 30, 2016, compared with 20.17 percent on Sep. 30, 2015. Debt to equity ratio was at 0.29 as on Sep. 30, 2016, down from 0.48 as on Sep. 30, 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: editor@irisindia.net
