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Segment Reporting
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
Segment Reporting
The Company’s business segments are Aluminum Extrusions, PE Films, and Flexible Packaging Films. Information by business segment is reported below. There are no accounting transactions between segments and no allocations to segments.
The Company’s reportable segments are based on its method of internal reporting, which is generally segregated by differences in products. Accounting standards for presentation of segments require an approach based on the way the Company organizes the segments for making operating decisions and how the CODM assesses performance. Earnings before interest, taxes, depreciation and amortization ("EBITDA") from ongoing operations is the key profitability measure used by the CODM (Tredegar’s President and Chief Executive Officer) for purposes of assessing financial performance. The Company uses sales less freight (“net sales”) as its measure of revenues from external customers at the segment level. This measure is separately included in the financial information regularly provided to the CODM.
The following table presents net sales and EBITDA from ongoing operations by segment for the three and nine months ended September 30, 2024 and 2023:
Three Months Ended September 30,Nine Months Ended September 30,
(In thousands)2024202320242023
Net Sales
Aluminum Extrusions$115,717 $109,410 $349,353 $364,607 
PE Films24,879 19,938 78,811 56,036 
Flexible Packaging Films34,370 30,111 99,025 94,861 
Total net sales174,966 159,459 527,189 515,504 
Add back freight7,085 6,733 20,833 19,977 
Sales as shown in the condensed consolidated statements of income (loss)$182,051 $166,192 $548,022 $535,481 
EBITDA from Ongoing Operations
Aluminum Extrusions:
Ongoing operations:
EBITDA$6,177 $5,113 $31,624 $29,968 
Depreciation & amortization(4,404)(4,683)(13,392)(13,252)
EBIT1,773 430 18,232 16,716 
Plant shutdowns, asset impairments, restructurings and other(2,170)(1,483)(4,986)(1,821)
PE Films:
Ongoing operations:
EBITDA5,876 4,037 22,913 6,700 
Depreciation & amortization(1,299)(2,111)(3,944)(5,305)
EBIT4,577 1,926 18,969 1,395 
Plant shutdowns, asset impairments, restructurings and other— (4,566)(584)(4,565)
Goodwill impairment— (19,478)— (34,891)
Flexible Packaging Films:
Ongoing operations:
EBITDA3,749 477 8,915 2,076 
Depreciation & amortization(708)(704)(2,191)(2,115)
EBIT3,041 (227)6,724 (39)
Plant shutdowns, asset impairments, restructurings and other(103)— (103)(79)
Total7,118 (23,398)38,252 (23,284)
Interest income8 62 36 135 
Interest expense3,480 3,106 10,314 7,791 
Gain on investment in kaleo, Inc.— — 144 262 
Stock option-based compensation costs— — — 231 
Pension settlement loss— 25,612 — 25,612 
Corporate expenses, net6,644 11,633 16,411 30,100 
Income (loss) before income taxes(2,998)(63,687)11,707 (86,621)
Income tax expense (benefit)948 (13,307)3,573 (16,307)
Net income (loss)$(3,946)$(50,380)$8,134 $(70,314)
The following table presents identifiable assets by segment at September 30, 2024 and December 31, 2023:
(In thousands)September 30, 2024December 31, 2023
Aluminum Extrusions$258,410 $255,756 
PE Films57,989 56,536 
Flexible Packaging Films85,297 84,062 
Subtotal401,696 396,354 
General corporate34,256 36,652 
Cash, cash equivalents and restricted cash6,588 13,455 
Total$442,540 $446,461 
The following tables disaggregate the Company’s revenue by geographic area and product group for the three and nine months ended September 30, 2024 and 2023:
Net Sales by Geographic Area (a)
Three Months Ended September 30,Nine Months Ended September 30,
(In thousands)2024202320242023
United States$133,157 $125,407 $407,465 $409,433 
Exports from the United States to:
Asia11,875 7,873 34,534 19,082 
Latin America1,395 1,764 4,121 5,440 
Canada3,437 3,640 10,459 12,879 
Europe405 282 1,053 1,414 
Operations outside the United States:
Brazil24,408 20,351 69,002 66,954 
Asia289 142 555 302 
Total$174,966 $159,459 $527,189 $515,504 
(a) Export sales relate mostly to PE Films. Operations in Brazil relate to Flexible Packaging Films.
The Company’s facilities in Pottsville, PA (“PV”) and Guangzhou, China (“GZ”) have a tolling arrangement whereby certain surface protection films are manufactured in GZ for a fee with raw materials supplied from PV that are then shipped by GZ directly to customers principally in the Asian market, but paid by customers directly to PV. Amounts associated with this intercompany tolling arrangement are reported in the table above as export sales from the U.S. to Asia, and include net sales of $6.5 million and $4.8 million in the third quarter of 2024 and 2023, respectively, and $19.1 million and $11.7 million in the first nine months of 2024 and 2023, respectively.
Net Sales by Product Group
Three Months Ended September 30,Nine Months Ended September 30,
(In thousands)2024202320242023
Aluminum Extrusions:
Nonresidential building & construction$61,988 $59,476 $195,603 $203,889 
Consumer durables8,581 8,662 25,487 30,723 
Automotive11,060 13,025 31,793 36,916 
Residential building & construction9,790 7,999 27,575 29,658 
Electrical8,926 2,016 21,983 16,223 
Machinery & equipment13,131 14,202 37,995 36,008 
Distribution2,241 4,030 8,917 11,190 
Subtotal115,717 109,410 349,353 364,607 
PE Films:
Surface protection films17,516 12,755 56,241 34,251 
Overwrap packaging7,363 7,183 22,570 21,785 
Subtotal24,879 19,938 78,811 56,036 
Flexible Packaging Films34,370 30,111 99,025 94,861 
Total $174,966 $159,459 $527,189 $515,504