Tredegar Shares Gain on Higher 2Q Profit, Aluminum Margin Tailwinds

Dow Jones
08/08
 

Shares of Tredegar rose after the company reported a higher profit and revenue growth in the second quarter, boosted by headwinds in its aluminum extrusions business.

Shares were up 10% to $8.54 in midday Friday trading. The stock is up 19% year-to-date.

The industrial manufacturer on Friday reported a profit of $6 million, or 17 cents a share, compared with $1.7 million, or 5 cents a share, a year earlier.

Stripping out certain one-time items, adjusted earnings from ongoing operations were 18 cents a share.

Sales rose to $216.2 million from $179.1 million a year prior.

Aluminum extrusions sales rose to $184.1 million from $148.4 million. Adjusted earnings before interest, taxes, depreciation, and amortization for the segment rose 56% to $14.5 million, driven by metal-related margin tailwinds, Chief Executive Officer Arijit (Bapi) DasGupta said.

"Our businesses continued to generate solid profitability, even while market conditions remain mixed and influenced by ongoing economic uncertainty and trade policy," DasGupta said.

The company said it has secured nearly all of its aluminium supply requirements through the rest of the year and is evaluating its 2027 supply needs to minimize exposure to the supply chain in the Middle East.

 

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