QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
−Removed: Tredegar has exposure to the volatility of interest rates, polyethylene and polypropylene resin prices, PTA and MEG prices, aluminum ingot and scrap prices, energy prices, foreign currencies and emerging markets.
+Added: Tredegar has exposure to the volatility of interest rates, polyethylene resin prices, aluminum ingot and scrap prices, energy prices, foreign currencies and emerging markets.
See Liquidity and Capital Resources regarding interest rate exposures related to borrowings under the ABL Facility.
1 unchanged sentence
Changes in polyethylene resin prices and the timing of those changes could have a significant impact on profit margins in PE Films.
−Removed: Changes in polyester resin, PTA and MEG prices, and the timing of those changes, could have a significant impact on profit margins in Flexible Packaging Films.
There is no assurance of the Company’s ability to pass through higher raw material and energy costs to its customers.
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Pricing on the remainder of the business is based upon raw material costs and supply/demand dynamics within the markets in which the Company competes.
−Removed: Polyester resins, MEG and PTA used in flexible packaging films produced in Brazil are primarily purchased domestically, with other sources available mostly from Asia and the U.S.
−Removed: Given the nature of these products as commodities, pricing is derived from Asian pricing indexes.
−Removed: The volatility of the average quarterly prices for polyester fibers in Asia, which is representative of polyester resin (a primary raw material for Flexible Packaging Films) pricing trends, is shown in the chart below:
−Removed: Quarterly averages computed by Tredegar using monthly data from CMAI Global Index data.
−Removed: The volatility of average quarterly prices of PTA and MEG in Asia (raw materials used in the production of polyester resins produced by Flexible Packaging Films) is shown in the chart below:
−Removed: Quarterly averages computed by Tredegar using monthly data from CMAI Global Index data.
The Company sells to customers in foreign markets through its foreign operations and through exports from U.S.
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Canada 2 — — 2 — — 1 — —
−Removed: Europe — — — — — — 1 — —
Latin America 1 — — 1 — — 1 — —
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Total 11 — 2 8 — 3 8 — 3
−Removed: Tredegar attempts to match the pricing and cost of its products in the same currency and generally views the volatility of foreign currencies and the corresponding impact on earnings and cash flow as part of the overall risk of operating in a global environment (for additional information, see trends for the Brazilian Real and Chinese Yuan in the charts on the following page).
+Added: Tredegar attempts to match the pricing and cost of its products in the same currency and generally views the volatility of foreign currencies and the corresponding impact on earnings and cash flow as part of the overall risk of operating in a global environment (for additional information, see trends for the Chinese Yuan in the chart below).
Exports from the U.S.
are generally denominated in U.S.
−Removed: The Company’s foreign currency exposure on income from continuing foreign operations relates to the Chinese Yuan and the Brazilian Real.
+Added: The Company’s foreign currency exposure on income from continuing foreign operations relates to the Chinese Yuan.
PE Films is generally able to match the currency of its sales and costs for its product lines.
−Removed: For flexible packaging films produced in Brazil, selling prices and key raw material costs are principally determined in U.S.
−Removed: Dollars and are impacted by local economic conditions and local and global competitive dynamics.
−Removed: Flexible Packaging Films is exposed to foreign exchange translation risk (its functional currency is the Brazilian Real) because almost 90% of the sales of Terphane Ltda.
−Removed: and substantially all of its related raw material costs are quoted or priced in U.S.
−Removed: Dollars while its variable conversion, fixed conversion and sales, general and administrative costs before depreciation and amortization (collectively “Terphane Ltda.
−Removed: Operating Costs”) are quoted or priced in Brazilian Real.
−Removed: This mismatch, together with a variety of economic variables impacting currency exchange rates, causes volatility that could negatively or positively impact EBITDA from ongoing operations for Flexible Packaging Films.
−Removed: The Company estimates annual net costs of R$139 million for the net mismatch translation exposure between Terphane Ltda.’s U.S.
−Removed: Dollar quoted or priced sales and raw material costs and underlying Brazilian Real quoted or priced Terphane Ltda.
−Removed: Operating Costs.
−Removed: Terphane Ltda.
−Removed: has outstanding foreign exchange average forward rate contracts to purchase Brazilian Real and sell U.S.
−Removed: Dollars to hedge its exposure.
−Removed: See Note 10 “Derivatives” to the Consolidated Financial Statements in Item 15 for more information on outstanding hedging contracts and this hedging program.
Tredegar estimates that the change in the value of foreign currencies relative to the U.S.
Dollar on PE Films had an unfavorable impact on EBITDA from ongoing operations in PE Films of $0.1 million in 2024 compared to 2023.
−Removed: Trends for the Brazilian Real and Chinese Yuan are shown in the chart below:
+Added: Trends for the Chinese Yuan are shown in the chart below:
Quarterly averages computed by Tredegar using daily closing data provided by Bloomberg.
3 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.