SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
-------------
FORM 11-K
ANNUAL REPORT
Pursuant to Section 15(d) of the
Securities Exchange Act of 1934
-------------
(Mark One)
----
/ X / ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 [FEE REQUIRED].
For the fiscal year ended December 31, 1995.
OR
----
/ / TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED].
For the transition period from _________to______________
Commission file number 33-29582
A. Full title of the plan and the address of the
plan, if different from that of the issuer named below:
SAVINGS PLAN FOR THE EMPLOYEES
OF TREDEGAR INDUSTRIES, INC.
B. Name of the issuer of the securities held
pursuant to the plan and the address of its principal
executive office:
Tredegar Industries, Inc.
1100 Boulders Parkway
Richmond, Virginia 23225
<PAGE>
REQUIRED INFORMATION
See Appendix 1.
SIGNATURES
The Plan. Pursuant to the requirements of the Securities Exchange Act of
1934, the trustees (or other persons who administer the employee benefit plan)
have duly caused this annual report to be signed on its behalf by the
undersigned hereunto duly authorized.
SAVINGS PLAN FOR THE EMPLOYEES
OF TREDEGAR INDUSTRIES, INC.
By: /s/ N. A. Scher
N. A. Scher, Chairman
Employee Savings Plan Committee
Dated: June 20, 1996
<PAGE>
Appendix 1
SAVINGS PLAN FOR THE EMPLOYEES OF
TREDEGAR INDUSTRIES, INC.
ANNUAL REPORT
FOR THE YEAR ENDED
DECEMBER 31, 1995
<PAGE>
SAVINGS PLAN FOR THE EMPLOYEES OF TREDEGAR INDUSTRIES, INC.
INDEX OF FINANCIAL STATEMENTS
Page
Independent auditors' report 2
Financial statements
Statement of net assets available for benefits at:
December 31, 1995 3
December 31, 1994 4
Statement of changes in net assets available for
benefits for the year ended:
December 31, 1995 5
December 31, 1994 6
December 31, 1993 7
Notes to financial statements 8-22
<PAGE>
Independent Auditors' Report
To the Plan Administrator, Savings Plan for
the Employees of Tredegar Industries, Inc.
We have audited the accompanying statements of net assets available for
benefits of the Savings Plan for the Employees of Tredegar Industries, Inc.
(Plan) as of December 31, 1995 and 1994, and the related statements of changes
in net assets available for benefits for each of the three years in the period
ended December 31, 1995. These financial statements are the responsibility of
the Plan's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the net assets available for benefits of the Plan as
of December 31, 1995 and 1994, and the changes in net assets available for
benefits for each of the three years in the period ended December 31, 1995, in
conformity with generally accepted accounting principles.
PLOTT & WALTON, PC
Richmond, Virginia
June 7, 1996
<PAGE>
<TABLE>
SAVINGS PLAN FOR THE EMPLOYEES OF TREDEGAR INDUSTRIES, INC.
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 1995
<CAPTION>
Active Inactive
Total (Note 3) (Note 4)
<S> <C> <C> <C>
Assets:
Investments (Note 6):
Money market funds:
Wachovia Bank Diversified Trust Fund
(cost $2,521,648) $ 2,521,648 $ 2,521,501 $ 147
Common stocks:
Albemarle Corporation
(cost $927,405) 3,530,978 - 3,530,978
Ethyl Corporation
(cost $1,791,937) 4,615,145 - 4,615,145
First Colony Corporation
(cost $1,353,267) 3,017,973 - 3,017,973
Tredegar Industries, Inc.
(cost $14,463,055) 34,933,135 34,933,135 -
United States government obligations
(cost $5,733,986) 5,736,347 5,736,347 -
Total investments 54,355,226 43,190,983 11,164,243
Interest and dividends receivable 293,215 224,592 68,623
54,648,441 43,415,575 11,232,866
Liabilities:
Accrued administrative expenses 45,151 34,780 10,371
Net assets available for benefits $54,603,290 $43,380,795 $11,222,495
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
<TABLE>
SAVINGS PLAN FOR THE EMPLOYEES OF TREDEGAR INDUSTRIES, INC.
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 1994
<CAPTION>
Active Inactive
Total (Note 3) (Note 4)
<S> <C> <C> <C>
Assets:
Investments (Note 6):
Money market funds:
Nations Prime Portfolio Trust A
(cost $3,408,041) $ 3,408,041 $ 3,394,450 $ 13,591
Common stocks:
Albemarle Corporation
(cost $1,007,656) 2,759,377 - 2,759,377
Ethyl Corporation
(cost $1,187,968) 3,860,924 - 3,860,924
First Colony Corporation
(cost $1,476,601) 2,914,096 - 2,914,096
Tredegar Industries, Inc.
(cost $13,497,704) 18,670,185 18,670,185 -
United States government obligations
(cost $3,804,001) 3,702,846 3,702,846 -
Total investments 35,315,469 25,767,481 9,547,988
Interest and dividends receivable 209,438 138,284 71,154
Net assets available for benefits $35,524,907 $25,905,765 $9,619,142
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
<TABLE>
SAVINGS PLAN FOR THE EMPLOYEES OF TREDEGAR INDUSTRIES, INC.
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 1995
<CAPTION>
Active Inactive
Total (Note 3) (Note 4)
<S> <C> <C> <C>
Additions to net assets attributed to:
Investment income:
Interest $ 474,531 $ 473,102 $ 1,429
Dividends 574,514 292,430 282,084
Net appreciation in the fair value
of investments 18,565,114 16,096,989 2,468,125
19,614,159 16,862,521 2,751,638
Contributions:
Employer 1,635,515 1,635,515 -
Participants 3,974,257 3,974,257 -
5,609,772 5,609,772 -
Total additions 25,223,931 22,472,293 2,751,638
Deductions from net assets attributed to:
Administrative expenses (Note 9) 51,839 39,551 12,288
Withdrawals paid to participating employees 6,093,709 5,373,021 720,688
Total deductions 6,145,548 5,412,572 732,976
19,078,383 17,059,721 2,018,662
Intrafund transfers - 415,309 (415,309)
Net increase for the year 19,078,383 17,475,030 1,603,353
Net assets available for benefits:
Beginning of year 35,524,907 25,905,765 9,619,142
End of year $54,603,290 $43,380,795 $11,222,495
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
<TABLE>
SAVINGS PLAN FOR THE EMPLOYEES OF TREDEGAR INDUSTRIES, INC.
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 1994
<CAPTION>
Active Inactive
Total (Note 3) (Note 4)
<S> <C> <C> <C>
Additions to net assets attributed to:
Investment income:
Interest $ 364,526 $ 361,133 $ 3,393
Dividends 551,686 254,775 296,911
Net appreciation (depreciation) in the
fair value of investments 1,724,285 2,433,538 (709,253)
2,640,497 3,049,446 (408,949)
Contributions:
Employer 1,920,910 1,920,910 -
Participants 3,970,019 3,970,019 -
5,890,929 5,890,929 -
Total additions 8,531,426 8,940,375 (408,949)
Deductions from net assets attributed to:
Administrative expenses (Note 9) 25,786 20,050 5,736
Withdrawals paid to participating employees 7,813,136 5,634,058 2,179,078
Total deductions 7,838,922 5,654,108 2,184,814
692,504 3,286,267 (2,593,763)
Intrafund transfers - 207,871 (207,871)
Net increase (decrease) for the year 692,504 3,494,138 (2,801,634)
Net assets available for benefits:
Beginning of year 34,832,403 22,411,627 12,420,776
End of year $35,524,907 $25,905,765 $ 9,619,142
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
<TABLE>
SAVINGS PLAN FOR THE EMPLOYEES OF TREDEGAR INDUSTRIES, INC.
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 1993
<CAPTION>
Active Inactive
Total (Note 3) (Note 4)
<S> <C> <C> <C>
Additions to net assets attributed to:
Investment income:
Interest $ 303,690 $ 301,405 $ 2,285
Dividends 563,037 239,503 323,534
Net depreciation in the fair value of
investments (2,063,418) (789,904) (1,273,514)
(1,196,691) (248,996) (947,695)
Contributions:
Employer 2,027,054 2,027,054 -
Participants 4,195,214 4,195,214 -
6,222,268 6,222,268 -
Total additions 5,025,577 5,973,272 (947,695)
Deductions from net assets attributed to:
Administrative expenses (Note 9) 23,615 16,909 6,706
Withdrawals paid to participating employees 7,424,283 5,172,806 2,251,477
Total deductions 7,447,898 5,189,715 2,258,183
(2,422,321) 783,557 (3,205,878)
Intrafund transfers - 380,923 (380,923)
Net increase (decrease) for the year (2,422,321) 1,164,480 (3,586,801)
Net assets available for benefits:
Beginning of year 37,254,724 21,247,147 16,007,577
End of year $34,832,403 $22,411,627 $12,420,776
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
SAVINGS PLAN FOR THE EMPLOYEES OF TREDEGAR INDUSTRIES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
1. Summary of significant accounting policies
General - Tredegar Industries, Inc. (Tredegar), which engages directly
or through subsidiaries in plastics and aluminum businesses, is a Virginia
corporation that was organized in 1988 as a wholly owned subsidiary of
Ethyl Corporation. On or about July 10, 1989 (Record Date), Ethyl
Corporation distributed all of the outstanding shares of Tredegar common
stock to the holders of common stock of Ethyl Corporation at the rate of
one share of Tredegar common stock for every ten shares of Ethyl
Corporation common stock held on the Record Date.
The Savings Plan for the Employees of Tredegar Industries, Inc. (Plan)
was adopted by the Board of Directors of Tredegar on June 14, 1989, and was
approved by Ethyl Corporation, Tredegar's sole shareholder, on June 19,
1989. The Plan was effective as of July 1, 1989. In connection with the
establishment of the Plan and the distribution of Tredegar's common stock,
the accounts of Tredegar employees in the Savings Plan for the Employees of
Ethyl Corporation (Ethyl Plan) were transferred to the Plan.
The Plan is subject to Titles I, II and III and is exempt from Title
IV of the Employee Retirement Income Security Act of 1974 (ERISA). Title IV
of ERISA provides for federally sponsored insurance for plans that
terminate with unfunded benefits. No such insurance is provided to
participants in this Plan, however, because the benefits that participants
are entitled to receive are always equal to the value of their account
balances and, for that reason, the Plan is always fully funded. The value
of a participant's account may change from time to time. Each participant
assumes the risk of fluctuations in the value of his account.
The accompanying financial statements of the Plan have been prepared
in conformity with generally accepted accounting principles.
Security valuation - Investments are stated at fair value determined
as follows:
Money market funds - market price which is
equivalent to cost
Common stocks - last published sale price
on the New York Stock
Exchange
United States government
obligations - last bid price
<PAGE>
SAVINGS PLAN FOR THE EMPLOYEES OF TREDEGAR INDUSTRIES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
1. Summary of significant accounting policies (Continued)
Security transactions and related investment income - Security
transactions are accounted for on the trade date and dividend income is
recorded as earned on the ex-dividend date. Interest income is recorded as
earned on the accrual basis. Premiums and discounts on securities are not
being amortized or accreted because the effect on the financial statements
would not be significant and would have no effect on net asset values. In
determining the realized net gain or loss on securities sold, the cost of
securities is determined on an average cost basis. The Plan presents in the
statements of changes in net assets available for benefits the net
appreciation (depreciation) in the fair value of investments, which
consists of the realized gains or losses and the change in unrealized
appreciation (depreciation) on those investments.
Estimates - The preparation of financial statements in conformity with
generally accepted accounting principles requires the Plan Administrator to
make estimates and assumptions that affect certain reported amounts and
disclosures. Accordingly, actual results may differ from those estimates.
2. Description of Plan
The Plan is a defined contribution plan. Information regarding plan
benefits and vesting is provided in the Plan and related documents which
are available at Tredegar's main office at 1100 Boulders Parkway, Richmond,
Virginia 23225.
3. Active funds
As of December 31, 1995, the following net assets were available for
benefits:
<TABLE>
<CAPTION>
Tredegar
Short-Term Government Industries
Investment Obligations Inc. Common
Fund Fund Stock Fund Total
<S> <C> <C> <C> <C>
Assets:
Investments:
Money market funds:
Wachovia Bank Diversified Trust
Fund $2,247,466 $ 95,917 $ 178,118 $ 2,521,501
Common stocks:
Tredegar Industries, Inc. - - 34,933,135 34,933,135
United States government
obligations - 5,736,347 - 5,736,347
Total investments 2,247,466 5,832,264 35,111,253 43,190,983
</TABLE>
<PAGE>
SAVINGS PLAN FOR THE EMPLOYEES OF TREDEGAR INDUSTRIES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
3. Active funds (Continued)
<TABLE>
<CAPTION>
Tredegar
Short-Term Government Industries
Investment Obligations Inc. Common
Fund Fund Stock Fund Total
<S> <C> <C> <C> <C>
Assets (Continued):
Interest and dividends receivable 10,913 115,802 97,877 224,592
Intrafund transfer receivable (payable) 66,377 24,724 (91,101) -
2,324,756 5,972,790 35,118,029 43,415,575
Liabilities:
Accrued administrative expenses 2,518 5,248 27,014 34,780
Net assets available for benefits $2,322,238 $5,967,542 $35,091,015 $43,380,795
</TABLE>
As of December 31, 1994, the following net assets were available for
benefits:
<TABLE>
<CAPTION>
Tredegar
Short-Term Government Industries
Investment Obligations Inc. Common
Fund Fund Stock Fund Total
<S> <C> <C> <C> <C>
Assets:
Investments:
Money market funds:
Nations Prime Portfolio Trust A $2,325,188 $ 920,597 $ 148,665 $ 3,394,450
Common stocks:
Tredegar Industries, Inc. - - 18,670,185 18,670,185
United States government
obligations - 3,702,846 - 3,702,846
Total investments 2,325,188 4,623,443 18,818,850 25,767,481
Interest and dividends receivable 10,286 62,883 65,115 138,284
Net assets available for benefits $2,335,474 $4,686,326 $18,883,965 $25,905,765
</TABLE>
<PAGE>
SAVINGS PLAN FOR THE EMPLOYEES OF TREDEGAR INDUSTRIES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
3. Active funds (Continued)
For the year ended December 31, 1995, net assets available for
benefits changed as follows:
<TABLE>
<CAPTION>
Tredegar
Short-Term Government Industries
Investment Obligations Inc. Common
Fund Fund Stock Fund Total
<S> <C> <C> <C> <C>
Additions to net assets attributable to:
Investment income:
Interest $ 101,744 $ 363,179 $ 8,179 $ 473,102
Dividends - - 292,430 292,430
Net appreciation in the fair value
of investments - 50,283 16,046,706 16,096,989
101,744 413,462 16,347,315 16,862,521
Contributions:
Employer - - 1,635,515 1,635,515
Participants 1,913,990 853,612 1,206,655 3,974,257
1,913,990 853,612 2,842,170 5,609,772
Total additions 2,015,734 1,267,074 19,189,485 22,472,293
Deductions from net assets attributed to:
Administrative expenses 4,674 6,407 28,470 39,551
Withdrawals paid to participating
employees 1,968,318 1,526,571 1,878,132 5,373,021
Total deductions 1,972,992 1,532,978 1,906,602 5,412,572
42,742 (265,904) 17,282,883 17,059,721
Intrafund transfers (55,978) 1,547,120 (1,075,833) 415,309
Net increase (decrease) for the year (13,236) 1,281,216 16,207,050 17,475,030
Net assets available for benefits:
Beginning of year 2,335,474 4,686,326 18,883,965 25,905,765
End of year $2,322,238 $5,967,542 $35,091,015 $43,380,795
</TABLE>
<PAGE>
SAVINGS PLAN FOR THE EMPLOYEES OF TREDEGAR INDUSTRIES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
3. Active funds (Continued)
For the year ended December 31, 1994, net assets available for
benefits changed as follows:
<TABLE>
<CAPTION>
Tredegar
Short-Term Government Industries
Investment Obligations Inc. Common
Fund Fund Stock Fund Total
<S> <C> <C> <C> <C>
Additions to net assets attributable to:
Investment income:
Interest $ 73,037 $ 280,300 $ 7,796 $ 361,133
Dividends - - 254,775 254,775
Net appreciation (depreciation)
in the fair value of investments - (144,435) 2,577,973 2,433,538
73,037 135,865 2,840,544 3,049,446
Contributions:
Employer - - 1,920,910 1,920,910
Participants 2,010,352 871,024 1,088,643 3,970,019
2,010,352 871,024 3,009,553 5,890,929
Total additions 2,083,389 1,006,889 5,850,097 8,940,375
Deductions from net assets attributed to:
Administrative expenses 1,635 10,121 8,294 20,050
Withdrawals paid to participating
employees 2,048,437 1,669,153 1,916,468 5,634,058
Total deductions 2,050,072 1,679,274 1,924,762 5,654,108
33,317 (672,385) 3,925,335 3,286,267
Intrafund transfers (54,228) 595,274 (333,175) 207,871
Net increase (decrease) for the year (20,911) (77,111) 3,592,160 3,494,138
Net assets available for benefits:
Beginning of year 2,356,385 4,763,437 15,291,805 22,411,627
End of year $2,335,474 $4,686,326 $18,883,965 $25,905,765
</TABLE>
<PAGE>
SAVINGS PLAN FOR THE EMPLOYEES OF TREDEGAR INDUSTRIES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
3. Active funds (Continued)
For the year ended December 31, 1993, net assets available for
benefits changed as follows:
<TABLE>
<CAPTION>
Tredegar
Short-Term Government Industries
Investment Obligations Inc. Common
Fund Fund Stock Fund Total
<S> <C> <C> <C> <C>
Additions to net assets attributable to:
Investment income:
Interest $ 52,400 $ 244,943 $ 4,062 $ 301,405
Dividends - - 239,503 239,503
Net depreciation in the fair value
of investments - (103,334) (686,570) (789,904)
52,400 141,609 (443,005) (248,996)
Contributions:
Employer - - 2,027,054 2,027,054
Participants 2,061,716 912,920 1,220,578 4,195,214
2,061,716 912,920 3,247,632 6,222,268
Total additions 2,114,116 1,054,529 2,804,627 5,973,272
Deductions from net assets attributed to:
Administrative expenses 1,337 9,109 6,463 16,909
Withdrawals paid to participating
employees 2,109,098 1,252,860 1,810,848 5,172,806
Total deductions 2,110,435 1,261,969 1,817,311 5,189,715
3,681 (207,440) 987,316 783,557
Intrafund transfers (66,235) 1,084,684 (637,526) 380,923
Net increase (decrease) for the year (62,554) 877,244 349,790 1,164,480
Net assets available for benefits:
Beginning of year 2,418,939 3,886,193 14,942,015 21,247,147
End of year $2,356,385 $4,763,437 $15,291,805 $22,411,627
</TABLE>
<PAGE>
SAVINGS PLAN FOR THE EMPLOYEES OF TREDEGAR INDUSTRIES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
4. Inactive funds
As of December 31, 1995, the following net assets were available for
benefits:
<TABLE>
<CAPTION>
Ethyl First Colony Albemarle
Corporation Corporation Corporation
Common Common Common
Stock Fund Stock Fund Stock Fund Total
<S> <C> <C> <C> <C>
Assets:
Investments:
Money market funds:
Wachovia Bank Diversified Trust
Fund $ 74 $ 54 $ 19 $ 147
Common stocks:
Albemarle Corporation - - 3,530,978 3,530,978
Ethyl Corporation 4,615,145 - - 4,615,145
First Colony Corporation - 3,017,973 - 3,017,973
Total investments 4,615,219 3,018,027 3,530,997 11,164,243
Interest and dividends receivable 46,618 11,982 10,023 68,623
4,661,837 3,030,009 3,541,020 11,232,866
Liabilities:
Accrued administrative expenses 4,247 2,972 3,152 10,371
Net assets available for benefits $4,657,590 $3,027,037 $3,537,868 $11,222,495
</TABLE>
As of December 31, 1994, the following net assets were available for
benefits:
<TABLE>
<CAPTION>
Ethyl First Colony Albemarle
Corporation Corporation Corporation
Common Common Common
Stock Fund Stock Fund Stock Fund Total
<S> <C> <C> <C> <C>
Assets:
Investments:
Money market funds:
Nations Prime Portfolio Trust A $ 5,716 $ 4,291 $ 3,584 $ 13,591
Common stocks:
Albemarle Corporation - - 2,759,377 2,759,377
Ethyl Corporation 3,860,924 - - 3,860,924
First Colony Corporation - 2,914,096 - 2,914,096
Total investments 3,866,640 2,918,387 2,762,961 9,547,988
Interest and dividends receivable 50,616 10,500 10,038 71,154
Net assets available for benefits $3,917,256 $2,928,887 $2,772,999 $9,619,142
</TABLE>
<PAGE>
SAVINGS PLAN FOR THE EMPLOYEES OF TREDEGAR INDUSTRIES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
4. Inactive funds (Continued)
For the year ended December 31, 1995, net assets available for
benefits changed as follows:
<TABLE>
<CAPTION>
Ethyl First Colony Albemarle
Corporation Corporation Corporation
Common Common Common
Stock Fund Stock Fund Stock Fund Total
<S> <C> <C> <C> <C>
Additions to net assets attributable
to:
Investment income:
Interest $ 1,024 $ 190 $ 215 $ 1,429
Dividends 192,411 49,957 39,716 282,084
Net appreciation in the fair
value of investments 1,060,532 379,799 1,027,794 2,468,125
Total additions 1,253,967 429,946 1,067,725 2,751,638
Deductions from net assets attributed to:
Administrative expenses 4,940 3,580 3,768 12,288
Withdrawals paid to participating
employees 313,567 198,667 208,454 720,688
Total deductions 318,507 202,247 212,222 732,976
935,460 227,699 855,503 2,018,662
Intrafund transfers (195,126) (129,549) (90,634) (415,309)
Net increase for the year 740,334 98,150 764,869 1,603,353
Net assets available for benefits:
Beginning of year 3,917,256 2,928,887 2,772,999 9,619,142
End of year $4,657,590 $3,027,037 $3,537,868 $11,222,495
</TABLE>
<PAGE>
SAVINGS PLAN FOR THE EMPLOYEES OF TREDEGAR INDUSTRIES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
4. Inactive funds (Continued)
For the year ended December 31, 1994, net assets available for
benefits changed as follows:
<TABLE>
<CAPTION>
Ethyl First Colony Albemarle
Corporation Corporation Corporation
Common Common Common
Stock Fund Stock Fund Stock Fund Total
<S> <C> <C> <C> <C>
Additions to net assets attributable
to:
Investment income:
Interest $ 1,577 $ 896 $ 920 $ 3,393
Dividends 213,930 40,093 42,888 296,911
Net appreciation (depreciation)
in the fair value of
investments (446,864) (472,817) 210,428 (709,253)
Total additions (231,357) (431,828) 254,236 (408,949)
Deductions from net assets attributed to:
Administrative expenses 2,914 1,600 1,222 5,736
Withdrawals paid to participating
employees 1,060,799 603,816 514,463 2,179,078
Total deductions 1,063,713 605,416 515,685 2,184,814
(1,295,070) (1,037,244) (261,449) (2,593,763)
Intrafund transfers (3,184,531) (57,788) 3,034,448 (207,871)
Net increase (decrease) for the
year (4,479,601) (1,095,032) 2,772,999 (2,801,634)
Net assets available for benefits:
Beginning of year 8,396,857 4,023,919 - 12,420,776
End of year $3,917,256 $2,928,887 $2,772,999 $ 9,619,142
</TABLE>
<PAGE>
SAVINGS PLAN FOR THE EMPLOYEES OF TREDEGAR INDUSTRIES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
4. Inactive funds (Continued)
For the year ended December 31, 1993, net assets available for
benefits changed as follows:
<TABLE>
<CAPTION>
Ethyl First Colony
Corporation Corporation
Common Common
Stock Fund Stock Fund Total
<S> <C> <C> <C>
Additions to net assets attributable to:
Investment income:
Interest $ 1,788 $ 497 $ 2,285
Dividends 302,351 21,183 323,534
Net depreciation in the fair value
of investments (836,842) (436,672) (1,273,514)
Total additions (532,703) (414,992) (947,695)
Deductions from net assets attributed to:
Administrative expenses 5,941 765 6,706
Withdrawals paid to participating employees 2,087,647 163,830 2,251,477
Total deductions 2,093,588 164,595 2,258,183
(2,626,291) (579,587) (3,205,878)
Intrafund transfers (4,984,429) 4,603,506 (380,923)
Net increase (decrease) for the year (7,610,720) 4,023,919 (3,586,801)
Net assets available for benefits:
Beginning of year 16,007,577 - 16,007,577
End of year $ 8,396,857 $4,023,919 $12,420,776
</TABLE>
<PAGE>
SAVINGS PLAN FOR THE EMPLOYEES OF TREDEGAR INDUSTRIES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
5. Contributions and investment options
As of December 31, 1995 and 1994, there were 1,558 and 1,559
employees, respectively, participating in the Plan. Participation in each
fund was as follows:
Number of Participants
December 31,
1995 1994
Short-Term Investment Fund 593 910
Government Obligations Fund 673 686
Tredegar Industries, Inc. Common Stock Fund 1,555 1,543
Albemarle Corporation Common Stock Fund 411 444
Ethyl Corporation Common Stock Fund 410 444
First Colony Corporation Common Stock Fund 410 443
As of December 31, 1995 and 1994, 1,847 and 2,572 employees,
respectively, were eligible to participate in the Plan.
Participants in the Plan currently may select a program for investment
in the Short-Term Investment Fund, Government Obligations Fund or Tredegar
Industries, Inc. Common Stock Fund, or in any combination thereof in even
multiples of 10%. Each participant may contribute a percentage of his or
her base pay (as defined) ranging from a minimum of 1% to a maximum of 10%.
The contribution paid on behalf of the participant by Tredegar is 50% of
each participant's contribution (for certain divisions' participants,
this match is limited to 25% of the first 6% of salary deferrals).
Contributions made by Tredegar are invested in the Tredegar Industries,
Inc. Common Stock Fund.
No additional contributions may be invested in either the Ethyl
Corporation Common Stock Fund (which was an investment option under the
Ethyl Plan), the First Colony Corporation Common Stock Fund (which was
created during 1993 as the result of a distribution to Ethyl Corporation
stockholders) or the Albemarle Corporation Common Stock Fund (which was
created during 1994 as the result of a distribution to Ethyl Corporation
stockholders). However, existing investments in these Funds may continue or
the participants may direct the transfer of their investment in these Funds
to the Government Obligations Fund or the Tredegar Industries, Inc. Common
Stock Fund.
<PAGE>
SAVINGS PLAN FOR THE EMPLOYEES OF TREDEGAR INDUSTRIES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
5. Contributions and investment options (Continued)
Investments in the Short-Term Investment Fund are selected by Wachovia
Bank, N.A. (Trustee) (NationsBank, N.A. prior to January 1, 1995), from
fund securities maturing within one year or revolving credit arrangements
that are completely liquid investments. Investments in the other active
funds are made primarily in United States government obligations and
Tredegar common stock. Investments in the common stock of Ethyl
Corporation, First Colony Corporation, and Albemarle Corporation are now
held until liquidation or distribution under the Plan. The United States
government obligations selected for investment are United States Treasury
notes or bills. The Trustee is permitted under the trust agreement to
invest monies held by it until such time as the funds are invested in
accordance with participants' directions or disbursed in accordance with
the terms of the Plan. These permitted investments include certain
commercial paper, variable notes, certificates of deposit, money market
funds and obligations of or guaranteed by the government of the United
States or any agency thereof.
The cost basis assigned to the First Colony Corporation common stock
received from the distribution by Ethyl Corporation was 31.62% of the cost
basis of the Ethyl Corporation common stock. The market value of First
Colony Corporation common stock on July 1, 1993 was $3,018,995 in excess of
the cost basis assigned.
The cost basis assigned to the Albemarle Corporation common stock
received from the distribution by Ethyl Corporation was 34.99% of the cost
basis of the Ethyl Corporation common stock. The market value of Albemarle
Corporation common stock on February 28, 1994, was $1,889,293 in excess of
the cost basis assigned.
6. Investments
The following tables present the fair value of investments (as
determined by quoted market price) as of December 31, 1995 and 1994.
Investments that represent five percent or more of the Plan's net
assets are separately identified.
<PAGE>
SAVINGS PLAN FOR THE EMPLOYEES OF TREDEGAR INDUSTRIES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
6. Investments (Continued)
<TABLE>
FAIR VALUE OF INVESTMENTS
December 31, 1995
<CAPTION>
Number of shares
or units - principal Fair
Name of issuer and title of each issue bonds and notes Cost Value (1)
<S> <C> <C> <C>
Money market funds:
Wachovia Bank Diversified Trust Fund $ 2,521,648 $ 2,521,648
Common stocks:
Albemarle Corporation 182,244 927,405 3,530,978
Ethyl Corporation 372,941 1,791,937 4,615,145
First Colony Corporation 118,935 1,353,267 3,017,973
Tredegar Industries, Inc. 1,083,198 14,463,055 34,933,135
United States government obligations $5,650,000 5,733,986 5,736,347
Total investments $26,791,298 $54,355,226
</TABLE>
(1) Investments are carried in the statement of net assets available for
benefits at fair value.
<TABLE>
FAIR VALUE OF INVESTMENTS
December 31, 1994
<CAPTION>
Number of shares
or units - principal Fair
Name of issuer and title of each issue bonds and notes Cost Value (1)
<S> <C> <C> <C>
Money market funds:
Nations Prime Portfolio Trust A $ 3,408,041 $ 3,408,041
Common stocks:
Albemarle Corporation 198,874 1,007,656 2,759,377
Ethyl Corporation 401,135 1,187,968 3,860,924
First Colony Corporation 130,239 1,476,601 2,914,096
Tredegar Industries, Inc. 1,074,543 13,497,704 18,670,185
United States government obligations $3,705,000 3,804,001 3,702,846
Total investments $24,381,971 $35,315,469
</TABLE>
(1) Investments are carried in the statement of net assets available for
benefits at fair value.
<PAGE>
SAVINGS PLAN FOR THE EMPLOYEES OF TREDEGAR INDUSTRIES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
6. Investments (Continued)
Closing stock prices as of December 31, 1995 and 1994, were as
follows:
1995 1994
Albemarle Corporation common stock $19.375 $13.875
Ethyl Corporation common stock 12.375 9.625
First Colony Corporation common stock 25.375 22.375
Tredegar Industries, Inc. common stock(1) 32.250 17.375
(1) On January 1, 1996, Tredegar effected a 3 for 2 stock split. The
stock prices listed above are reported on a pre-split basis.
During the years ended December 31, 1995 and 1994, the Plan's
investment portfolio (including investments bought, sold and held during
the year) appreciated in value by $18,565,114 and $1,724,285 as follows:
Net change in fair value
1995 1994
United States government obligations $ 50,283 $ (144,435)
Tredegar Industries, Inc. common stock 16,046,706 2,577,973
Albemarle Corporation common stock 1,027,794 210,428
Ethyl Corporation common stock 1,060,532 (446,864)
First Colony Corporation common stock 379,799 (472,817)
Net change in fair value $18,565,114 $1,724,285
7. Federal income taxes
The Plan is a defined contribution plan that is qualified under
Section 401(a) of the Internal Revenue Code of 1986 (Code). The Plan
contains a cash or deferred arrangement that is designed to satisfy the
requirements of Code Section 401(k). Generally, contributions (other than
employee after-tax contributions) to the Plan and earnings on those
contributions are not taxable until distributed from the Plan. The Plan was
restated and amended effective January 1, 1994. The Internal Revenue
Service has issued a favorable determination letter concerning the form of
the Plan under Code Section 401(a).
<PAGE>
SAVINGS PLAN FOR THE EMPLOYEES OF TREDEGAR INDUSTRIES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
8. Annual Short-Term Investment Fund distribution
The Plan provides that an annual distribution of 75% of each
participant's interest in the Short-Term Investment Fund as of the end of
the preceding plan year will be made as promptly as practicable after the
beginning of the new plan year unless a participant elects to transfer this
distribution to the Government Obligations Fund or the Tredegar Industries,
Inc. Common Stock Fund. Annual distributions in the amount of $1,822,924,
$1,665,194, and $1,667,074 were paid from the Short-Term Investment Fund in
February 1996, 1995, and 1994, respectively. The remaining balance, if any,
is carried over in the Short-Term Investment Fund.
9. Administrative expenses
Trustee expenses are borne by the Plan. All other expenses are borne
by Tredegar.
10. Forfeitures
Employees who leave Tredegar before becoming fully vested in Tredegar
contributions forfeit the value of their nonvested account. Forfeitures are
applied against Tredegar's contributions throughout the year. Forfeitures
were as follows:
1995 $76,280
1994 64,113
1993 70,735
11. Subsequent event
On March 29, 1996, Tredegar sold Tredegar Molded Products Company, a
wholly owned subsidiary. The sale affects approximately 600 plan
participants.
<PAGE>
EXHIBIT INDEX
24.1 Consent of Independent Auditors
Exhibit 24.1
CONSENT OF INDEPENDENT AUDITORS
We consent to the incorporation by reference in the Registration Statement of
Tredegar Industries, Inc. on Form S-8 (File Number 33-64647) of our report dated
June 7, 1996, appearing in this Annual Report on Form 11-K of the Savings Plan
for the Employees of Tredegar Industries, Inc. for the year ended December 31,
1995.
/s/ Plott & Walton, PC
PLOTT & WALTON, PC
June 19, 1996
<PAGE>
