Orders for US aluminum extrusions producer Bonnell Aluminum, a subsidiary of Tredegar, declined by 20pc after the Section 232 tariffs on steel and aluminum increased to 50pc on 4 June.
Bonnell started to implement price increases for the third quarter to offset other tariff-related cost increases.
Lower extrusion demand and customers pausing orders to evaluate the higher tariff rate led to the decline in orders, according to Tredegar chief executive John Steitz.
Bonnell sold an average of 3.4mn lbs/week from 5 January to 1 June, while averaging 2.7mn lbs/week sold from 8 June to 1 August.
The company's finished aluminum extrusions sold rose by 17pc to 40.7mn lbs in the second quarter compared to the same quarter last year, as the company noted a higher order rate in April and May.
The building and construction end-use markets accounted for 55pc of the company's sales by volume in the second quarter, while its specialty products end-use segment grew the most in the quarter — up 34pc to 12.7mn lbs sold year over year.
Manufacturing costs for the company were higher than expected in the second quarter, with Bonnell citing inefficiencies in ramping-up production to fulfill the higher order rate in the first two months of the second quarter.
The company's revenue increased in the second quarter by 24pc to $148.4mn from the second quarter of 2024.
