CHICAGO Tredegar Corp.s net income dipped in 2013 despite a strong year for subsidiary Bonnell Aluminum Inc. as higher sales volumes were offset by lower aluminum prices.
The first half of this year could also be challenging, the Richmond, Va.-based company warned in commentary released with its earnings results Feb. 24.
But Tredegar president and chief executive officer Nancy M. Taylor remained optimistic about the companys prospects in 2014. "We believe we can achieve sales and volume improvements for the year even after a soft start," she said in a statement.
A strong North American automotive market should benefit Bonnell, which is expected to have a new press and related equipment to serve automotive demand by the end of the first quarter, Taylor said.
Tredegar announced plans last year to spend $17 million to boost its extrusion capabilities to serve the automotive and light truck markets from Bonnells Newnan, Ga., facility (amm.com, Feb. 12, 2013).
Operating profit from ongoing operations at Bonnell totaled $18.3 million in 2013, more than double the $9 million recorded in the year-ago period, on sales that jumped 26.1 percent to $309.5 million from $245.5 million. For the three months ended Dec. 31, the company posted an operating profit from ongoing operations of $5.9 million, up more than threefold from $1.7 million in the same period a year earlier, on net sales that increased 0.3 percent to $73.2 million from $72.9 million.
The gain in 2013 net sales resulted mostly from the 2012 acquisition of Aacoa Inc. (amm.com, Oct. 1, 2012), with sales otherwise flat, Tredegar said. That deal has allowed Bonnell to reduce its dependence on the nonresidential building and construction market, the company added. In addition, material previously held at a shuttered manufacturing facility in Kentland, Ind. (amm.com, Feb. 2, 2012) has been moved to other facilities, Tredegar said.