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Tredegar Reports Higher Second-Quarter Earnings

July 21, 2004 at 5:03 PM EDT
            Aluminum Profits Drive Improved Manufacturing Results

RICHMOND, Va., July 21 /PRNewswire-FirstCall/ -- Tredegar Corporation (NYSE: TG) reported second-quarter income from continuing operations of $5.2 million (14 cents per share) compared to $1.7 million (4 cents per share) in 2003. Earnings from manufacturing operations were $10.6 million (27 cents per share) versus $7.6 million (20 cents per share). Second-quarter sales were $216.1 million compared to $181.6 million in 2003. A summary of second- quarter and year-to-date results from continuing operations is shown below:


     (In millions, except                   Second Quarter     Six Months
      per-share data)                           Ended            Ended
                                               June 30          June 30
                                            2004     2003    2004     2003
     Income from continuing operations
      as reported under
      generally accepted
      accounting principles (GAAP)          $5.2    $1.7     $7.6     $6.5
     After-tax effects of:
       Loss related to unusual items           -       -        -       .7
       Loss associated with plant
        shutdowns, asset impairments
        and restructurings                   4.0     3.8     11.0      3.8
       Loss from Therics
        ongoing operations                   1.7     2.1      3.3      4.3
       Gain on sale of other assets         (0.3)      -     (4.2)       -
     Income from manufacturing
      operations*                          $10.6    $7.6    $17.7    $15.3

     Diluted earnings per share from
      continuing operations as
      reported under GAAP                   $.14    $.04     $.20     $.17
     After-tax effects per
      diluted share of:
       Loss related to unusual items           -       -        -      .02
       Loss associated with plant
        shutdowns, asset impairments
        and restructurings                   .10     .10      .29      .10
       Loss from Therics
        ongoing operations                   .04     .06      .08      .11
       Gain on sale of other assets         (.01)      -     (.11)       -
     Diluted earnings per share from
      manufacturing operations*             $.27    $.20     $.46     $.40

* The after-tax effects of unusual items, plant shutdowns, asset impairments and restructurings, Therics' ongoing operations, and gain on sale of other assets have been presented separately and removed from income and earnings per share from continuing operations as reported under GAAP to determine Tredegar's presentation of income and earnings per share from manufacturing operations. Income and earnings per share from manufacturing operations are key financial and analytical measures used by Tredegar to gauge the operating performance of its manufacturing businesses. They are not intended to represent the stand-alone results for Tredegar's manufacturing businesses under GAAP and should not be considered as an alternative to net income or earnings per share as defined by GAAP. They exclude items that we believe do not relate to Tredegar's ongoing manufacturing operations. They also exclude Therics, a technology company that cannot be analyzed and valued by historical measures of earnings and cash flow. Therics' prospects and value currently depend on its ability to develop, manufacture, market, sell and profit from its orthopaedic product line. There is no assurance whether or when we might realize any return on our investment in Therics.

Norman A. Scher, Tredegar's president and chief executive officer, said: "The increase in second-quarter earnings was led by our aluminum extrusions business, where improved market conditions, higher volume and cost reductions boosted profits. Volume and profits in films were also up, and we remain optimistic that near-term opportunities will lead to meaningful profit growth in this business by the end of this year or early 2005."

Regarding Therics, Scher said: "We continue to monitor Therics closely and hope to see further acceptance of its new bone void filler products during the second half of 2004."

                           MANUFACTURING OPERATIONS

                                Film Products

Second-quarter net sales in Film Products were $101.5 million, up 15% from $88.4 million in 2003. Operating profit from ongoing operations was $10.9 million, up 8% from $10.1 million last year. Volume for the quarter increased 9% to 71.2 million pounds from 65.5 million pounds in 2003.

On a sequential basis, net sales, operating profit from ongoing operations and volume in the first quarter of 2004 were $95.9 million, $10.0 million and 69.1 million pounds, respectively.

Film Products has successfully introduced a variety of new elastic diaper laminates and feminine hygiene topsheet products to several global customers, and sales of new packaging and specialty films are increasing. The company continues to invest aggressively to support new global growth opportunities. The ongoing success of P&G's new feminine pad topsheet, which was rolled out in Europe and Japan in 2003, is leading to new opportunities in other regions. While current capacity is sufficient to meet near-term demand, Film Products is increasing 2004 capital spending from $40 million to $55 million to support additional growth expectations for this product. This increase in capital expenditures is tied to contracted volume commitments.

Year-to-date net sales were $197.4 million versus $181.8 million in 2003. Operating profit from ongoing operations was $20.9 million compared to $24.0 million in 2003. Year-to-date volume increased slightly to 140.3 million pounds from 138.8 million pounds. Prior-year results include sales of certain domestic backsheet that were discontinued at the end of the first quarter of 2003.

    Capital spending in Film Products through June 30 totaled $21 million.

                             Aluminum Extrusions

Second-quarter net sales in Aluminum Extrusions were $109.0 million, up 23% from $88.6 million in 2003. Volume was up 8% to 62.0 million pounds from 57.6 million pounds in 2003. Operating profit from ongoing operations increased 69% to $8.3 million from $4.9 million in 2003. The profit increase was driven by volume growth, higher selling prices and improved operating efficiencies. Shipments were up in all end markets, with the strongest growth in the commercial building and construction, transportation, and machinery and equipment segments.

Year-to-date net sales were $204.2 million, up 18% from $173.1 million in 2003. Operating profit from ongoing operations for the six-month period nearly doubled to $12.0 from $6.1 in 2003. Year-to-date volume increased 8% to 120.0 million pounds, up from 111.6 million pounds in 2003.

Through June 30, capital expenditures totaled $3 million and are expected to be approximately $15 million for the year.

                                   THERICS

The second-quarter operating loss from ongoing operations at Therics was $2.5 million compared to a loss of $3.3 million in 2003. Therics launched its initial product line earlier this year. Net sales were $120,000 for the quarter, up from $11,000 in the first quarter. The year-to-date operating loss was $5.0 million compared to $6.6 million in 2003.

Quarterly operating losses are expected to continue at about the second- quarter level until meaningful sales are achieved.

                                 OTHER ITEMS

Second-quarter results include a net after-tax charge of $4.0 million (10 cents per share) for plant shutdowns, asset impairments and restructurings, including asset impairment charges of $1.9 million related to the films business in Argentina, which is for sale. Second-quarter results also include a net after-tax gain of $268,000 on the sale of other assets. Last year's second-quarter results included a net after-tax charge of $3.8 million (10 cents per share) related to plant shutdowns, asset impairments and restructurings.

Year-to-date net after-tax charges for unusual items, plant shutdowns, asset impairments and restructurings were $11.0 million (29 cents per share), including $6.2 million related to the planned shutdown of the aluminum extrusions plant in Aurora, Ontario. Comparable charges in 2003 totaled $4.5 million (12 cents per share). The year-to-date gain on the sale of other assets in 2004 was $4.2 million (11 cents per share) and was related primarily to the sale of securities.

Second-quarter results for 2003 include a net gain from discontinued operations of $891,000 (2 cents per share) related to the sale of intellectual property formerly owned by Tredegar's Molecumetics subsidiary, which was closed in 2002. The year-to-date net loss for discontinued operations in 2003 totaled $48.6 million ($1.26 per share) and was related primarily to the company's venture capital activities.

Additional details regarding these items are provided in the financial tables included with this press release.

                              CAPITAL STRUCTURE

Net debt (debt net of cash) was $70 million, or less than one times the last twelve months adjusted EBITDA.

See notes to financial tables for reconciliations to comparable GAAP measures.

                          QUARTERLY CONFERENCE CALL

Tredegar management will host a conference call on July 22 at 11:00 a.m. EDT to discuss its earnings results. Individuals can access the call by dialing 877-692-2592. Individuals calling from outside the United States should dial 973-582-2700. A replay of the call will be available, beginning at 2:00 p.m. on July 22 through July 29, by dialing 877-519-4471 (domestic) or 973-341-3080 (international), conference ID 4933620.

Alternatively, individuals may listen to the live audio webcast of the presentation by visiting the Tredegar Web site at http://www.tredegar.com. The webcast of the call may be accessed by selecting the "Webcast of second- quarter results" link on the home page. An archived version of the call will be available for replay on the Web site.

                  FORWARD-LOOKING AND CAUTIONARY STATEMENTS

The words "believe," "hope," "expect," "are likely," and similar expressions identify "forward-looking" statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve a number of risks and uncertainties that could cause actual results to differ materially from those contained in the forward- looking statements, including without limitation the following:

Film Products is highly dependent on sales to one customer, which comprised approximately 30% of Tredegar's net sales in 2003. Film Products' success in this regard depends on its ability to develop products that meet this customer's requirements as well as market acceptance of this customer's products. Our ability to grow Film Products and attract new customers depends on developing and delivering new products, especially in the personal care market. Personal care products are now being made with a variety of new materials, replacing traditional backsheet and other components. While we have substantial technical resources, there can be no assurance that our new products can be brought to market successfully, or at the same level of profitability and market share of replaced films. A shift in customer preferences away from our technologies, our inability to develop and deliver new profitable products, or delayed acceptance of our new products in domestic and foreign markets, could have a material adverse effect on our business.

Aluminum Extrusions is a cyclical business that is highly dependent on the economic conditions of its end-use markets in the U.S. and Canada, particularly in the construction, distribution and transportation industries. This business is also subject to seasonal slowdowns during the winter months. Aluminum Extrusions is under increasing domestic and foreign competitive pressures, including a growing presence of foreign imports in a number of its markets.

Therics' prospects and value depend on its ability to develop, manufacture, market, sell and profit from its orthopaedic product line and to achieve specified milestones, all of which will depend on its preclinical, clinical, regulatory, procurement, manufacturing, and sales and marketing capabilities or, where appropriate, its ability to enter into satisfactory arrangements with third parties to provide those functions.

Future performance is also influenced by the costs incurred by Tredegar's businesses. There is no assurance that cost control efforts will offset cost increases or any additional declines in revenues. Likewise, there is no assurance of our ability to pass through to our customers cost increases in raw materials.

Tredegar does not undertake to update any forward-looking statement made in this press release to reflect any change in management's expectations or any change in conditions, assumptions or circumstances on which such statements are based.

To the extent that this release contains non-GAAP financial measures, it also presents both the most directly comparable financial measures calculated and presented in accordance with GAAP and a quantitative reconciliation of the difference between any such non-GAAP measures and such comparable GAAP financial measures. Accompanying the reconciliation is management's statement concerning the reasons why management believes that presentation of non-GAAP measures provides useful information to investors concerning Tredegar's financial condition and results of operations.

Based in Richmond, Va., Tredegar Corporation is a global manufacturer of plastic films and aluminum extrusions. Tredegar is also developing and marketing bone graft substitutes through its Therics subsidiary.



                               Tredegar Corporation
                   Condensed Consolidated Statements of Income
                      (In Thousands, Except Per-Share Data)
                                   (Unaudited)

                                     Second Quarter Ended   Six Months Ended
                                           June 30              June 30
                                       2004       2003      2004       2003

    Sales                            $216,053   $181,574  $411,972   $363,619
    Other income (expense), net           352        428     6,458      1,151
                                      216,405    182,002   418,430    364,770

    Cost of goods sold                177,483    149,836   341,227    299,337
    Freight                             5,468      4,532    10,295      8,720
    Selling, R&D and general
     expenses                          18,623     17,389    36,567     35,580
    Amortization of intangibles            67         67       134        134
    Interest expense                      598      1,683     1,521      3,786
    Plant shutdowns, asset
     impairments and
     restructurings(a)                  6,004      5,882    16,787      5,967
    Unusual items(b)                       -          -         -       1,067
                                      208,243    179,389   406,531    354,591

    Income before income taxes          8,162      2,613    11,899     10,179
    Income taxes                        2,983        932     4,291      3,639

    Income from continuing
     operations                         5,179      1,681     7,608      6,540
    Discontinued operations(c):
      Loss from venture capital
       investment activities
       (including an after-tax loss
       on the sale of the venture
       capital investment portfolio
       of $49.2 million in 2003)            -          -         -    (49,516)
      Gain on the sale of
       intellectual property of
       Molecumetics in 2003                 -        891         -        891

    Net income (loss)(a)(b)(c)(d)      $5,179     $2,572    $7,608   $(42,085)

    Earnings (loss) per share:
      Basic:
      Continuing operations              $.14       $.04      $.20       $.17
      Discontinued operations               -        .02         -      (1.28)
      Net income (loss)                  $.14       $.06      $.20     $(1.11)

      Diluted:
      Continuing operations              $.14       $.04      $.20       $.17
      Discontinued operations               -        .02         -      (1.26)
      Net income (loss)                  $.14       $.06      $.20     $(1.09)

    Shares used to compute earnings
     (loss) per share:
      Basic                            38,235     38,047    38,232     38,113
      Diluted                          38,427     38,418    38,431     38,498



                                 Tredegar Corporation
                      Net Sales and Operating Profit by Segment
                                    (In Thousands)
                                     (Unaudited)

                                     Second Quarter Ended   Six Months Ended
                                            June 30              June 30
                                       2004       2003      2004       2003
    Net Sales
    Film Products                    $101,484    $88,410  $197,370   $181,794
    Aluminum Extrusions               108,981     88,632   204,176    173,105
    Therics                               120          -       131          -
    Total net sales                   210,585    177,042   401,677    354,899
    Add back freight                    5,468      4,532    10,295      8,720
    Sales as shown in the
     Consolidated
      Statements of Income           $216,053   $181,574  $411,972   $363,619

    Operating Profit
    Film Products:
      Ongoing operations              $10,863    $10,104   $20,887    $24,032
      Plant shutdowns, asset
       impairments and
        restructurings(a)              (4,834)    (2,609)   (6,037)    (2,694)

    Aluminum Extrusions:
      Ongoing operations                8,281      4,855    11,964      6,066
      Plant shutdowns, asset
       impairments and
        restructurings(a)                (146)      (388)   (9,726)      (388)

    Therics:
      Ongoing operations               (2,543)    (3,306)   (5,034)    (6,603)
      Restructurings(a)                (1,024)    (1,704)   (1,024)    (1,704)
      Unusual items(b)                      -          -         -     (1,067)
    Total                              10,597      6,952    11,030     17,642
    Interest income                        72        409       146        833
    Interest expense                      598      1,683     1,521      3,786
    Gain on sale of corporate
     assets(b)                            413          -     6,547          -
    Corporate expenses, net             2,322      3,065     4,303      4,510
    Income before income taxes          8,162      2,613    11,899     10,179
    Income taxes                        2,983        932     4,291      3,639
    Income from continuing
     operations                         5,179      1,681     7,608      6,540
    Income (loss) from discontinued
     operations(c)                          -        891         -    (48,625)
    Net income (loss)(a)(b)(c)(d)      $5,179     $2,572    $7,608   $(42,085)



                              Tredegar Corporation
                      Condensed Consolidated Balance Sheets
                                 (In Thousands)
                                   (Unaudited)

                                                   June 30,       December 31,
                                                     2004             2003
    Assets

    Cash & cash equivalents                         $19,168          $19,943
    Accounts & notes receivable                     112,800           84,110
    Income taxes recoverable                          2,863           61,508
    Inventories                                      48,860           49,572
    Deferred income taxes                            12,437           10,998
    Prepaid expenses & other                          5,532            5,015
    Total current assets                            201,660          231,146

    Property, plant & equipment, net                293,460          297,476
    Other assets                                     81,447           83,855
    Goodwill & other intangibles                    139,837          140,548

    Total assets                                   $716,404         $753,025

    Liabilities and Shareholders' Equity

    Accounts payable                                $59,848          $46,706
    Accrued expenses                                 46,124           42,456
    Current portion of long-term debt                11,250            8,750
    Total current liabilities                       117,222           97,912

    Long-term debt                                   77,530          130,879
    Deferred income taxes                            62,782           66,276
    Other noncurrent liabilities                     10,713           10,559
    Shareholders' equity                            448,157          447,399

    Total liabilities and shareholders'
     equity                                        $716,404         $753,025



                              Tredegar Corporation
                 Condensed Consolidated Statement of Cash Flows
                                 (In Thousands)
                                   (Unaudited)

                                                        Six Months Ended
                                                            June 30
                                                     2004             2003
    Cash flows from operating activities:
      Net income (loss)                             $7,608          $(42,085)
      Adjustments for noncash items:
        Depreciation                                16,162            15,669
        Amortization of intangibles                    134               134
        Deferred income taxes                       (2,365)           33,365
        Accrued pension income and
         postretirement benefits                    (2,042)           (2,204)
        Loss on venture capital investments              -            70,256
        Gain on sale of corporate assets            (6,547)                -
        Loss on asset impairments and
         divestitures                               12,476             2,023
      Changes in assets and liabilities,
       net of effects of acquisitions and
       divestitures:
        Accounts and notes receivables             (29,774)            6,352
        Inventories                                     72              (175)
        Income taxes recoverable                    58,633           (47,148)
        Prepaid expenses and other                    (622)               25
        Accounts payable                            13,824             6,129
        Accrued expenses                             3,018             4,388
      Other, net                                    (1,506)              704
        Net cash provided by operating
         activities                                 69,071            47,433
    Cash flows from investing activities:
      Capital expenditures                         (24,737)          (26,083)
      Venture capital investments                        -            (2,807)
      Proceeds from sale of venture capital
       investments                                       -            21,504
      Proceeds from the sale of corporate
       assets and property disposals                 7,829                 -
      Other, net                                       521              (116)
        Net cash used in investing
         activities                                (16,387)           (7,502)
    Cash flows from financing activities:
      Dividends paid                                (3,068)           (3,050)
      Net decrease in borrowings                   (50,849)          (29,188)
      Repurchase of Tredegar common stock                -            (5,170)
      Proceeds from exercise of stock
       options                                         458               623
        Net cash used in financing
         activities                                (53,459)          (36,785)
    (Decrease) increase in cash and cash
     equivalents                                      (775)            3,146
    Cash and cash equivalents at beginning
     of period                                      19,943           109,928
    Cash and cash equivalents at end of
     period                                        $19,168          $113,074



                           Selected Financial Measures
                                  (In Millions)
                                   (Unaudited)

                                    For the Twelve Months Ended June 30, 2004
                                     Film      Aluminum
                                   Products   Extrusions   Therics    Total

    Operating profit (loss)
     from ongoing operations         $42.5      $21.0     $(10.1)     $53.4
    Allocation of corporate
     overhead                         (5.5)      (2.8)         -       (8.3)
    Add back depreciation and
     amortization                     20.4       11.0        1.5       32.9
    Adjusted EBITDA(e)               $57.4      $29.2      $(8.6)     $78.0

    Selected balance sheet and
     other data as of June 30,
     2004:
      Cash invested to date in
       Therics                       $69.4
      Net debt(f)                    $69.6
      Shares outstanding              38.4


    Notes to the Financial Tables
    (a) Plant shutdowns, asset impairments and restructurings in the second
        quarter of 2004 include:
        * A pretax charge of $2.7 million for impairment of the films business
          in Argentina;
        * Pretax charges of $994,000 related to accelerated depreciation from
          plant shutdowns and restructurings in Film Products;
        * A pretax charge of $879,000 related to the estimated loss on the
          sub-lease of a portion of the Therics facility in Princeton, New
          Jersey;
        * Pretax charges of $575,000 in Film Products and $146,000 in Aluminum
          Extrusions related to asset impairments;
        * A pretax charge of $300,000 related to severance and other employee-
          related costs associated with the planned shutdown of the films
          manufacturing facility in New Bern, North Carolina;
        * A pretax charge of $300,000 related to the estimated loss on the
          sale of the previously shutdown films manufacturing facility in
          Manchester, Iowa; and
        * A pretax charge of $145,000 related to severance costs in Therics.

        Plant shutdowns, asset impairments and restructurings in the first six
        months of 2004 include:
        * A pretax charge of $9.6 million related to the planned shutdown of
          an aluminum extrusions facility in Aurora, Ontario, including asset
          impairment charges of $7.1 million and severance and other employee-
          related costs of $2.5 million;
        * A pretax charge of $2.7 million for impairment of the films business
          in Argentina;
        * Pretax charges of $1.7 million related to accelerated depreciation
          from plant shutdowns and restructurings in Film Products;
        * A pretax charge of $879,000 related to the estimated loss on the
          sub-lease of a portion of the Therics facility in Princeton, New
          Jersey;
        * Pretax charges of $575,000 in Film Products and $146,000 in Aluminum
          Extrusions related to asset impairments;
        * Pretax charges of $837,000 related to severance and other employee-
          related costs associated with the planned shutdown of the film
          manufacturing facility in New Bern, North Carolina;
        * A pretax charge of $300,000 related to the estimated loss on the
          sale of the previously shutdown films manufacturing facility in
          Manchester, Iowa; and
        * A pretax charge of $145,000 related to severance costs in Therics.

        Plant shutdowns, asset impairments and restructurings in the second
        quarter of 2003 include:
        * Pretax charges for severance costs in connection with restructurings
          in Film Products ($1.6 million), Therics ($1.2 million) and at
          corporate headquarters ($1.2 million; included in "Corporate
          expenses, net" in the Operating Profit by Segment table);
        * A pretax charge of $956,000 for asset impairments in Film Products;
        * A pretax charge of $388,000 related to an early retirement program
          in Aluminum Extrusions;
        * A pretax charge of $549,000 related to the estimated loss on the
          sub-lease of a portion of the Therics facility in Princeton, New
          Jersey; and
        * Pretax charge of $53,000 for additional costs incurred related to a
          previously announced plant shutdown in Film Products.

        Plant shutdowns, asset impairments and restructurings in the first six
        months of 2003 include:
        * Pretax charges for severance costs in connection with restructurings
          in Film Products ($1.6 million), Therics ($1.2 million) and at
          corporate headquarters ($1.2 million; included in "Corporate
          expenses, net" in the Operating Profit by Segment table);
        * A pretax charge of $956,000 for asset impairments in Film Products;
        * A pretax charge of $388,000 related to an early retirement program
          in Aluminum Extrusions;
        * A pretax charge of $549,000 related to the estimated loss on the
          sub-lease of a portion of the Therics facility in Princeton, New
          Jersey; and
        * Pretax charges of $138,000 for additional costs incurred related to
          previously announced plant shutdowns in Film Products.


    (b) Unusual items in 2003 include a first-quarter pretax charge of $1.1
        million related to an adjustment for depreciation at Therics based on
        Tredegar's decision to suspend divestiture efforts.

        Gain on the sale of corporate assets in 2004 include gains of $6.1
        million related to the sale of public equity securities and $413,000
        on the sale of corporate real estate. There were no public equity
        securities held at June 30, 2004.


    (c) On March 7, 2003, Tredegar announced that Tredegar Investments had
        reached definitive agreements to sell substantially all of its venture
        capital investment portfolio. The operating results associated with
        venture capital investment activities have been reported as
        discontinued operations. Discontinued operations for 2003 also include
        a gain of $891,000 after-taxes on the sale of intellectual property of
        Molecumetics and a loss on the divestiture of the venture capital
        investment portfolio of $49.2 million after taxes.

        Operations were ceased at Molecumetics on July 2, 2002. The operating
        results of Molecumetics have been reported as discontinued operations.


    (d) Comprehensive income (loss), defined as net income and other
        comprehensive income (loss), was income of $4 million for the second
        quarter of 2004 and income of $10.3 million for the second quarter of
        2003. Comprehensive income (loss) was income of $3 million for the
        first six months of 2004 and a loss of $31.5 million for the first six
        months of 2003. Other comprehensive income (loss) includes changes in
        unrealized gains and losses on available-for- sale securities, foreign
        currency translation adjustments, unrealized gains and losses on
        derivative financial instruments and minimum pension liability
        recorded net of deferred taxes directly in shareholders' equity.


    (e) Adjusted EBITDA represents income from continuing operations before
        interest, taxes, depreciation, amortization, unusual items and losses
        associated with plant shutdowns, asset impairments and restructurings
        and gain on sale of other assets. Adjusted EBITDA is not intended to
        represent cash flow from operations as defined by GAAP and should not
        be considered as either an alternative to net income (as an indicator
        of operating performance) or to cash flow (as a measure of liquidity).
        Tredegar uses Adjusted EBITDA as a measure of unlevered (debt-free)
        operating cash flow. We also use it when comparing relative enterprise
        values of manufacturing companies and when measuring debt capacity.
        When comparing the valuations of a peer group of manufacturing
        companies, we express enterprise value as a multiple of Adjusted
        EBITDA. We believe Adjusted EBITDA is preferable to operating profit
        and other GAAP measures when applying a comparable multiple approach
        to enterprise valuation because it excludes depreciation and
        amortization, unusual items and losses associated with plant
        shutdowns, asset impairments and restructurings, measures of which may
        vary among peer companies.


    (f) Net debt is calculated as follows (in millions):
        Debt                                      $88.8
        Less: cash and cash equivalents           (19.2)
        Net debt                                  $69.6

SOURCE  Tredegar Corporation
    -0-                             07/21/2004
    /CONTACT:  Mitzi S. Reynolds of Tredegar Corporation, +1-804-330-1134,
Fax: +1-804-330-1177, or mitzireynolds@tredegar.com/
    /Web site:  http://www.tredegar.com /
    (TG)

CO:  Tredegar Corporation
ST:  Virginia
IN:  CHM MNG
SU:  ERN CCA MAV

RJ-PM 
-- DCW018 --
9023 07/21/2004 17:02 EDT http://www.prnewswire.com
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