TG Stock: Over 18% Drop This Week Explanation

By Amit Chowdhry ● Mar 17, 2023
  • The stock price of Tredegar Corporation (NYSE: TG) fell by over 18% this past week. This is why.

The stock price of Tredegar Corporation (NYSE: TG) fell by over 18% this past week.

Why: Q4 results

Q4 results: Tredegar reported a Q4 EPS of ($0.11) compared to $0.63 reported last year. And the revenue for the quarter was$189.1 million compared to $232.1 million reported last year during the same period.


 “Tredegar had a pre-tax loss from ongoing operations during the fourth quarter of 2022 driven by lower sales volume in our Aluminum Extrusions and PE Films business segments, which we believe was mainly due to cyclical declines exacerbated by customer inventory corrections. We expect an overall return to profitability during the first quarter of 2023 with gradual improvement thereafter.”

 “While Bonnell had record profitability during 2022, performance in the first half of the year significantly outperformed the second half as customers focused on bringing down high inventory levels. The outlook for 2023 remains uncertain.”

 “PE Films had negative EBITDA from ongoing operations during the second half of 2022 due to weak demand for products with flat panel displays and customer inventory corrections. We’re hopeful that a recovery will begin in the second quarter of 2023. Terphane, our flexible packaging films business headquartered in Brazil, had solid performance throughout 2022, but has experienced a downturn in demand during the first quarter of 2023.”

 “Debt, net of cash, increased by $75 million during 2022. The primary factors for this increase included a $50 million contribution in February of 2022 for the first step in the termination and settlement process of our frozen pension plan, which is expected to be completed by the end of 2023, and higher working capital resulting from an abrupt slowdown in business in the second half of 2022. We continue to be very focused on reducing net working capital to normal operating levels.”

  • John Steitz, Tredegar’s president and chief executive officer