Tredegar Corp. reported second-quarter net income of $6.5 million compared to $8.9 million in the second quarter of 2008. Earnings in the second quarter totaled $8.5 million versus $9.6 million last year. Second-quarter sales decreased to $158.1 million from $234 million in 2008.
John Gottwald, Tredegar’s president and CEO said, “Our focus on cash generation and active cost reduction continues. In our films business, ongoing operating profit improved in the second quarter of 2009 compared with results in 2008, which were adversely affected by the lag in the pass-through of higher average resin costs. Excluding the effects of resin lag, volume declines and the unfavorable effect of currency changes were partially offset by the benefits of cost reduction efforts and productivity gains.”
Net sales in the second quarter and first half of 2009 declined primarily due to lower volumes across all market segments, most notably personal care and surface protection materials, unfavorable changes in the U.S. dollar value of currencies for operations outside of the U.S. and the impact of lower selling prices from the pass-through of lower resin costs.