CHICAGO Tredegar Corp.s earnings were bolstered in the fourth quarter thanks to subsidiary Bonnell Aluminum Inc.s acquisition of Aacoa Inc.
"Were excited about the future opportunities that this acquisition provides," Nancy Taylor, president and chief executive officer of Richmond, Va.-based Tredegar, said in a statement released with earnings Feb. 14.
Newnan, Ga.-based extruder Bonnell Aluminum bought competitor Aacoa for $50.8 million last fall. Aacoa serves the consumer durables, transportation, and machinery and equipment markets from its aluminum anodizing plant in Elkhart, Ind., and its extrusion and fabrication facility in Niles, Mich. (amm.com, Oct. 1). The acquisition should allow Tredegar to broaden its capabilities and more actively participate in markets outside of building and construction, Taylor said.
In addition, Tredegar divested mitigation banking business Falling Springs LLC in the fourth quarter as the company looks to focus on the manufacturing sector.
Tredegar posted fourth-quarter net income of more than $10.47 million in contrast to a net loss of $252,000 in the same period a year earlier on sales that jumped 15.9 percent to $233.04 million. Full-year net income of $28.25 million was up 13.7 percent from $24.86 million in 2011 on an 11-percent increase in sales to $882.19 million.
Aluminum extrusion division Bonnell posted operating earnings of $1.69 million in the fourth quarter, up 83.9 percent from $918,000 a year earlier on sales that surged 35.9 percent to $72.94 million. For the full year, the division recorded operating earnings of $9.04 million, more than double earnings of $3.46 million in 2011, on net sales that inched up 2.1 percent to $245.47 million.
Shipments shot up 33.1 percent to 33.7 million pounds in the fourth quarter, while full-year output rose 6.3 percent to 114.85 million pounds.
The increase in net sales was partially offset by lower aluminum prices, Tredegar said, while operating earnings were bolstered by the third-quarter shutdown of Bonnells extrusion facility in Kentland, Ind., due to weakness in the building and construction markets.
Capital expenditures at Bonnell are expected to total about $19 million this year, up more than eightfold from $2.3 million in 2012, Tredegar said. The big gain includes a $15-million capacity expansion at Newnan as the company looks to boost capacity to serve the automotive sector. The expansion will include a new extrusion press, Bonnells fifth at the Newnan site (amm.com, Feb. 12).