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
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,
In addition, Tredegar divested
mitigation banking business Falling Springs LLC in the fourth
quarter as the company looks to focus on the manufacturing
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
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).