CHICAGO Tredegar Corp.s earnings jumped in the first quarter of 2013 compared with the year-ago period thanks in part to a solid performance from its Bonnell Aluminum Inc. subsidiary.
Newnan, Ga.-based Bonnell continued to benefit from savings related to the 2012 shutdown of an extrusion facility in Kentland, Ind., as well as the acquisition of Aacoa Inc. (amm.com, Feb. 15), the Richmond, Va.-based film products and aluminum extrusions company said.
Bonnell is also set to make further gains thanks to a new extrusion press aimed at servicing the automotive market, Tredegar president and chief executive officer Nancy M. Taylor said in an earnings statement released May 2.
"This project, along with the broad capabilities and diversified market presences that Aacoa provides, will advance our growth in markets outside of building and construction," Taylor said.
Capital expenditures in aluminum extrusions are expected to be $17 million in 2013, including $13 million for Bonnells Newnan expansions, which is forecast to take 18 months to complete, Tredegar said.
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. Bonnell shut the Kentland extrusion facility due to weakness in the building and construction markets.
Tredegar reported net income of nearly $4.3 million in the first quarter of 2013, up 42.7 percent from almost $3 million in the year-ago quarter, on sales that increased 11.5 percent to $241.5 million.
Bonnells operating profit from ongoing operations totaled $4.6 million in the quarter, more than double the $1.7 million reported in year-ago quarter, on sales that jumped 38.8 percent to $79.9 million, Tredegar said. Aluminum extrusion sales volumes increased 22.8 percent to 35.7 million pounds from 26.9 million pounds in the same comparison, the company said.
Aacoa, which was acquired Oct. 1 (amm.com, Oct. 1), recorded net sales of $21.8 million in the first quarter, Tredegar said.