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Tredegar Tredegar Reports Third Quarter 2021 Results November 5 , 2021 RICHMOND , Va .-- ( BUSINESS WIRE ) -- Nov . 5 , 2021-- Tredegar Corporation ( NYSE : TG , also the “ Company ” or “ Tredegar " ) today reported third quarter financial results for the period ended September 30 , 2021 . Third quarter 2021 net income from continuing operations was $ 6.2 million ( 0.19 per diluted share ) compared to net loss from continuing operations of $ 17.0 million ( $ 0.51 per diluted share ) in the third quarter of 2020. Net income from ongoing operations , which excludes special items and discontinued operations , was $ 7.2 million ( $ 0.22 per diluted share ) in the third quarter of 2021 compared with $ 13.2 million ( $ 0.39 per diluted share ) in the third quarter of 2020. A reconciliation of net income ( loss ) from continuing operations , a financial measure calculated in accordance with U.S. generally accepted accounting principles ( " GAAP " ) , to net income from ongoing operations , a non - GAAP financial measure , for the three and nine months ended September 30 , 2021 and 2020 , is provided in Note ( a ) of the Notes to the Financial Tables in this press release . Third Quarter Financial Results Highlights • Earnings before interest , taxes , depreciation and amortization ( " EBITDA " ) from ongoing operations for Aluminum Extrusions of $ 12.0 million was $ 4.5 million lower than the third quarter of 2020 • EBITDA from ongoing operations for PE Films of $ 4.8 million was $ 1.2 million lower than the third quarter of 2020 • EBITDA from ongoing operations for Flexible Packaging Films of $ 7.4 million was $ 2.2 million lower than the third quarter of 2020 John Steitz , Tredegar's president and chief executive officer said , " Bonnell Aluminum's production and sales continue to fall below robust demand and bookings due to a shortage of labor while backlog continues to grow . Price increases have helped keep pace with inflationary cost pressures . " Mr. Steitz also stated , “ PE Films ' profitability has been adversely impacted by previously disclosed customer product transitions and resin price increases . In addition , competitive pricing pressures are anticipated to further erode profitability by $ 6 million in 2022. PE Films is very focused on generating sales of new surface protection products , applications and customers and driving production efficiencies and cost savings . " Mr. Steitz added , " Terphane continues to perform well while overcoming pandemic - related and other obstacles . Debt , net of cash , declined to $ 96.7 million at the end of the third quarter , which was $ 25.5 million lower than the beginning of the year due to strong cash generation . " THE IMPACT OF COVID - 19 AND RELATED FINANCIAL CONSIDERATIONS Essential Business and Employee Considerations The Company's priorities during the coronavirus ( " COVID - 19 " ) pandemic continue to be to protect the health and safety of employees while keeping its manufacturing sites open due to the essential nature of many of its products . The Company has continued to manufacture the full range of products at its facilities . The Company's protocols to protect the health and well - being of its employees from COVID - 19 continue to evolve as the Centers for Disease Control ( " CDC " ) , the Office of the Surgeon General and other state and local health departments learn more about the virus and its variants . Consistent with recommendations and mandates from government agencies and health authorities , the Company has implemented multiple layers of COVID - 19 protections and interventions . The Company has engaged in an education campaign that provides employees with the most accurate and up - to - date information related to COVID - 19 vaccines and has offered different monetary and / or time - away - from - work incentives to encourage employees to get vaccinated . While the Company believes that these efforts have encouraged employees to be vaccinated , vaccination rates in its U.S. manufacturing sites vary widely , ranging from 23 % to 78 % , with most U.S. sites having vaccination rates above 50 % . The Company will continue to monitor available information to assess safeguards that may be taken to try to prevent a COVID - 19 outbreak in the workplace . Bonnell Aluminum continues to experience higher than normal absenteeism and hiring difficulties , which it attributes to COVID - 19 - related factors . While the average number of direct labor employees at Bonnell Aluminum facilities increased approximately 6 % in the third quarter of 2021 , compared with the abnormally low levels related to the pandemic in the second and third quarters of 2020 , there continues to be a shortage of labor to meet existing demand and desired shipment levels . Moreover , onboarding new employees has resulted in higher hiring and training costs in 2021 versus last year . All three of the Company's business segments are managing through supply chain disruptions and escalating costs , including raw material cost increases , shortages , transportation cost increases and delays . To offset growing cost pressures , Bonnell Aluminum implemented its second selling price increase in 2021 , which became effective April 26 , 2021 , and is preparing for an upcoming price increase effective January 3 , 2022. In response to unprecedented cost increases and supply issues for polyethylene and polypropylene resin , PE Films implemented a quarterly resin cost pass - through mechanism , effective July 1 , 2021 , for all products and customers not previously covered by such arrangements . Terphane , the Company's flexible packaging business headquartered in Brazil , continues to monitor cost escalations to adjust selling prices as market dynamics permit . Financial Considerations Approximately 62 % of Bonnell Aluminum's sales volume in 2020 was related to building and construction ( " B & C " ) markets ( non - residential B & C of 55 % and residential B & C of 7 % ) . Non - residential B & C volume started to decline in the fourth quarter of 2020 after the fulfillment of contracts that