Bonnell cuts 2020 aluminum shipment guidance amid market downturn

Pittsburgh — Bonnell Aluminum has reduced its expected 2020 full-year aluminum extrusion sales volume by 14% as its plants have been impacted by layoffs and lower demand in key end-markets amid the coronavirus pandemic, parent company Tredegar said Monday.

"Lower sales volume and bookings for Bonnell Aluminum coupled with industry data reflecting, among other factors, the impact of COVID-19, appear to indicate a downturn is occurring across all key end-use markets, with double-digit declines in the automotive and specialty markets," Tredegar said in a statement.

Tredegar said Bonnell now planned total aluminum sales volume in 2020 to reach only 173 million lb, down from original expected 2020 volume of 201 million lbs. The company sold 208 million lb of aluminum products in 2019.

Virginia-based Tredegar said Bonnell's plants in Niles, Michigan, and Elkhart, Indiana, were most severely impacted by the pandemic. Over 80% of the aluminum extrusions produced at these facilities serve customers in the consumer durables, building and construction and automotive markets, Tredegar added.

Due to pandemic-related market conditions, Tredegar said employee layoffs were implemented at various Bonnell plants as their operations were adjusted.

"Bonnell Aluminum continuously attempts to match its direct labor with demand, including declining demand associated with the pandemic," Tredegar said. "Its layoffs of full-time, temporary or contract workers through May 6 was approximately 240 people."

Tredegar CEO John Steitz said the company's manufacturing sites are classified as essential businesses and are all now in operation. However, Bonnell's Newnan, Georgia, plant was temporarily shut down for two days in late March and 7.5 days in April for disinfecting, Tredegar added.

Tredegar said Bonnell has continued to manufacture essential products for pandemic-related applications such as aluminum extrusion parts for hospital beds, FEMA tents, temporary hospital structures and medical equipment.

Bonnell's Q1 aluminum shipment volume fell 11.7% year over year to 47,317,000 lb. Revenue from shipments dropped 15.2% to $117.89 million in the same period.

Bonnell primarily produces aluminum extrusions for building and construction, automotive, consumer durables, machinery, equipment, electrical and distribution end-use products.