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
For the fiscal year ended December 31, 1996.
OR
----
/ / TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the transition period from _________to______________
Commission file number 33-64647
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 17, 1998
SAVINGS PLAN FOR THE EMPLOYEES OF
TREDEGAR INDUSTRIES, INC.
ANNUAL REPORT
FOR THE YEAR ENDED
DECEMBER 31, 1997
<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, 1997 3
December 31, 1996 4
Statement of changes in net assets available for
benefits for the year ended:
December 31, 1997 5
December 31, 1996 6
December 31, 1995 7
Notes to financial statements 8-24
<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, 1997 and 1996, and the related statements of changes
in net assets available for benefits for each of the three years in the period
ended December 31, 1997. 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, 1997 and 1996, and the changes in net assets available
for benefits for each of the three years in the period ended December 31, 1997,
in conformity with generally accepted accounting principles.
PLOTT & WALTON, PC
Richmond, Virginia
June 5, 1998
<PAGE>
<TABLE>
SAVINGS PLAN FOR THE EMPLOYEES OF TREDEGAR INDUSTRIES, INC.
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 1997
<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 $99,158) $ 99,158 $ 67,262 $ 31,896
Common stocks:
Albemarle Corporation
(cost $556,834) 2,410,253 - 2,410,253
Ethyl Corporation
(cost $1,027,436) 1,460,082 - 1,460,082
Tredegar Industries, Inc.
(cost $15,006,131) 88,749,896 88,749,896 -
Actively managed commingled funds:
Frank Russell Investment Contract Fund
(cost $5,542,604) 5,958,153 5,958,153 -
Frank Russell Global Balanced Fund
(cost $4,105,608) 5,196,770 5,196,770 -
Frank Russell Equity I Fund
(cost $5,062,350) 7,049,564 7,049,564 -
Frank Russell Equity II Fund
(cost $586,015) 784,621 784,621 -
Loans to participants 415,971 415,971 -
------------ ------------ ----------
Total investments 112,124,468 108,222,237 3,902,231
Interest and dividends receivable 141,965 121,009 20,956
Cash 587 408 179
------------ ------------ ----------
Net assets available for benefits $112,267,020 $108,343,654 $3,923,366
============ ============ ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
SAVINGS PLAN FOR THE EMPLOYEES OF TREDEGAR INDUSTRIES, INC.
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 1996
<TABLE>
<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 $686,481) $ 686,481 $ 202,836 $ 483,645
Frank Russell Short Term Investment Fund
(cost $237) 237 237 -
Common stocks:
Albemarle Corporation
(cost $615,585) 2,153,141 - 2,153,141
Ethyl Corporation
(cost $1,133,967) 2,132,959 - 2,132,959
Tredegar Industries, Inc.
(cost $13,861,815) 57,966,983 57,966,983 -
Actively managed commingled funds:
Frank Russell Investment Contract Fund
(cost $4,418,321) 4,545,748 4,545,748 -
Frank Russell Global Balanced Fund
(cost $3,168,424) 3,486,211 3,486,211 -
Frank Russell Equity I Fund
(cost $3,578,047) 4,027,405 4,027,405 -
Frank Russell Equity II Fund
(cost $422,874) 456,556 456,556 -
Loans to participants 156,328 156,328 -
----------- ----------- ----------
Total investments 75,612,049 70,842,304 4,769,745
Receivables:
Interest and dividends 166,379 117,969 48,410
Due from broker for securities trades 104,425 - 104,425
----------- ----------- ----------
Total receivables 270,804 117,969 152,835
Cash 37,159 36,800 359
----------- ----------- ----------
75,920,012 70,997,073 4,922,939
Liabilities:
Cash overdrafts 1,200 1,200 -
Accrued administrative expenses 292 39 253
Loans committed not paid 36,800 36,800 -
Due to broker for securities trades 33,202 33,202 -
----------- ----------- ----------
71,494 71,241 253
----------- ----------- ----------
Net assets available for benefits $75,848,518 $70,925,832 $4,922,686
=========== =========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
SAVINGS PLAN FOR THE EMPLOYEES OF TREDEGAR INDUSTRIES, INC.
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 1997
<TABLE>
<CAPTION>
Active Inactive
Total (Note 3) (Note 4)
<S> <C> <C> <C>
Additions to net assets attributed to:
Investment income:
Interest $ 46,305 $ 41,341 $ 4,964
Dividends 590,434 466,069 124,365
Net appreciation in the fair value
of investments 39,417,632 39,146,620 271,012
------------ ------------ ----------
40,054,371 39,654,030 400,341
Contributions:
Employer 1,754,488 1,754,488 -
Participants 3,955,256 3,955,256 -
------------ ------------ ----------
5,709,744 5,709,744 -
------------ ------------ ----------
Total additions 45,764,115 45,363,774 400,341
Deductions from net assets attributed to:
Administrative expenses (Note 9) 178,740 175,042 3,698
Withdrawals paid to participating employees 9,166,873 8,715,130 451,743
------------ ------------ ----------
Total deductions 9,345,613 8,890,172 455,441
------------ ------------ ----------
36,418,502 36,473,602 (55,100)
Intraplan transfers - 944,220 (944,220)
------------ ------------ ----------
Net increase (decrease) for the year 36,418,502 37,417,822 (999,320)
Net assets available for benefits:
Beginning of year 75,848,518 70,925,832 4,922,686
------------ ------------ ----------
End of year $112,267,020 $108,343,654 $3,923,366
============ ============ ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<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, 1996
<CAPTION>
Active Inactive
Total (Note 3) (Note 4)
<S> <C> <C> <C>
Additions to net assets attributed to:
Investment income:
Interest $ 190,342 $ 163,115 $ 27,227
Dividends 604,707 398,583 206,124
Net appreciation (depreciation) in the
fair value of investments 29,454,043 29,754,217 (300,174)
----------- ----------- -----------
30,249,092 30,315,915 (66,823)
Contributions:
Employer 1,681,868 1,681,868 -
Participants 3,753,198 3,753,198 -
----------- ----------- -----------
5,435,066 5,435,066 -
----------- ----------- -----------
Total additions 35,684,158 35,750,981 (66,823)
Deductions from net assets attributed to:
Administrative expenses (Note 9) 106,781 99,151 7,630
Withdrawals paid to participating employees 14,253,450 13,026,873 1,226,577
----------- ----------- -----------
Total deductions 14,360,231 13,126,024 1,234,207
----------- ----------- -----------
21,323,927 22,624,957 (1,301,030)
Transfers:
Intraplan - 4,997,810 (4,997,810)
To successor plan (78,699) (77,730) (969)
----------- ----------- -----------
Total transfers (78,699) 4,920,080 (4,998,779)
----------- ----------- -----------
Net increase (decrease) for the year 21,245,228 27,545,037 (6,299,809)
Net assets available for benefits:
Beginning of year 54,603,290 43,380,795 11,222,495
----------- ----------- -----------
End of year $75,848,518 $70,925,832 $ 4,922,686
=========== =========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<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
Intraplan 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
=========== =========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
SAVINGS PLAN FOR THE EMPLOYEES OF TREDEGAR INDUSTRIES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997
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
Actively managed
commingled funds - provided in the audited annual report
of the Frank Russell Trust Company
<PAGE>
SAVINGS PLAN FOR THE EMPLOYEES OF TREDEGAR INDUSTRIES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997
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. 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.
<PAGE>
SAVINGS PLAN FOR THE EMPLOYEES OF TREDEGAR INDUSTRIES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997
3. Active funds
As of December 31, 1997, the following net assets were
available for benefits:
<TABLE>
<CAPTION>
Tredegar
Industries Stable
Inc. Common Value Balanced Equity Loan
Stock Fund Fund Fund Fund Fund Total
<S> <C> <C> <C> <C> <C> <C>
Assets:
Investments:
Money market funds - Wachovia Bank
Diversified Trust Fund $ 26,496 $ 5,622 $ 17,600 $ 17,544 $ - $ 67,262
Common stocks:
Tredegar Industries, Inc. 88,749,896 - - - - 88,749,896
Actively managed commingled funds:
Frank Russell Investment Contract
Fund - 5,958,153 - - - 5,958,153
Frank Russell Global Balanced Fund - - 5,196,770 - - 5,196,770
Frank Russell Equity I Fund - - - 7,049,564 - 7,049,564
Frank Russell Equity II Fund - - - 784,621 - 784,621
Loans to participants - - - - 415,971 415,971
----------- ---------- ---------- ---------- -------- ------------
Total investments 88,776,392 5,963,775 5,214,370 7,851,729 415,971 108,222,237
Interest and dividends receivable 121,009 - - - - 121,009
Cash 290 15 41 62 - 408
----------- ---------- ---------- ---------- --------- -----------
Net assets available for benefits $88,897,691 $5,963,790 $5,214,411 $7,851,791 $415,971 $108,343,654
=========== ========== ========== ========== ======== ============
</TABLE>
<PAGE>
SAVINGS PLAN FOR THE EMPLOYEES OF TREDEGAR INDUSTRIES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997
3. Active funds (Continued)
As of December 31, 1996, the following net assets were
available for benefits:
<TABLE>
<CAPTION>
Tredegar
Industries Stable
Inc. Common Value Balanced Equity Loan
Stock Fund Fund Fund Fund Fund Total
<S> <C> <C> <C> <C> <C> <C>
Assets:
Investments:
Money market funds:
Wachovia Bank Diversified Trust
Fund $ 202,836 $ - $ - $ - $ - $ 202,836
Frank Russell Short Term Investment
Fund - 45 60 132 - 237
Common stocks:
Tredegar Industries, Inc. 57,966,983 - - - - 57,966,983
Actively managed commingled funds:
Frank Russell Investment Contract
Fund - 4,545,748 - - - 4,545,748
Frank Russell Global Balanced Fund - - 3,486,211 - - 3,486,211
Frank Russell Equity I Fund - - - 4,027,405 - 4,027,405
Frank Russell Equity II Fund - - - 456,556 - 456,556
Loans to participants - - - - 156,328 156,328
----------- ---------- ---------- ---------- -------- -----------
Total investments 58,169,819 4,545,793 3,486,271 4,484,093 156,328 70,842,304
Interest and dividends receivable 117,923 14 12 20 - 117,969
Cash - - - - 36,800 36,800
----------- ---------- ---------- ---------- -------- -----------
58,287,742 4,545,807 3,486,283 4,484,113 193,128 70,997,073
Liabilities:
Cash overdrafts - 367 393 440 - 1,200
Accrued administrative expenses 39 - - - - 39
Loans committed not paid - - - - 36,800 36,800
Due to broker for securities trades 33,202 - - - - 33,202
----------- ---------- ---------- ---------- -------- -----------
33,241 367 393 440 36 800 71,241
----------- ---------- ---------- ---------- -------- -----------
Net assets available for benefits $58,254,501 $4,545,440 $3,485,890 $4,483,673 $156,328 $70,925,832
=========== ========== ========== ========== ======== ===========
</TABLE>
<PAGE>
SAVINGS PLAN FOR THE EMPLOYEES OF TREDEGAR INDUSTRIES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997
3. Active funds (Continued)
For the year ended December 31, 1997, net assets available for
benefits changed as follows:
<TABLE>
<CAPTION>
Tredegar
Industries Stable
Inc. Common Value Balanced Equity Loan
Stock Fund Fund Fund Fund Fund Total
<S> <C> <C> <C> <C> <C> <C>
Additions to net assets
attributed to:
Investment income:
Interest $ 17,564 $ 645 $ 431 $ 645 $ 22,056 $ 41,341
Dividends 465,612 218 61 178 - 466,069
Net appreciation
in the fair value
of investments 36,258,606 319,389 806,777 1,761,848 - 39,146,620
----------- ---------- ---------- ---------- -------- ------------
36,741,782 320,252 807,269 1,762,671 22,056 39,654,030
Contributions:
Employer 1,754,488 - - - - 1,754,488
Participants 1,476,986 401,711 672,749 1,403,810 - 3,955,256
----------- ---------- ---------- ---------- -------- ------------
3,231,474 401,711 672,749 1,403,810 - 5,709,744
----------- ---------- ---------- ---------- -------- ------------
Total additions 39,973,256 721,963 1,480,018 3,166,481 22,056 45,363,774
Deductions from net
assets attributed to:
Administrative
expenses 52,984 21,821 39,578 60,659 - 175,042
Withdrawals to
participating
employees 7,331,325 487,498 340,494 541,038 14,775 8,715,130
----------- ---------- ---------- ---------- -------- ------------
Total deductions 7,384,309 509,319 380,072 601,697 14,775 8,890,172
----------- ---------- ---------- ---------- -------- ------------
32,588,947 212,644 1,099,946 2,564,784 7,281 36,473,602
Intraplan transfers (1,945,757) 1,205,706 628,575 803,334 252,362 944,220
---------- ---------- ---------- ---------- -------- ------------
Net increase for the
year 30,643,190 1,418,350 1,728,521 3,368,118 259,643 37,417,822
Net assets available
for benefits:
Beginning of year 58,254,501 4,545,440 3,485,890 4,483,673 156,328 70,925,832
----------- ---------- ---------- ---------- -------- ------------
End of year $88,897,691 $5,963,790 $5,214,411 $7,851,791 $415,971 $108,343,654
=========== ========== ========== ========== ======== ============
</TABLE>
<PAGE>
SAVINGS PLAN FOR THE EMPLOYEES OF TREDEGAR INDUSTRIES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997
3. Active funds (Continued)
For the year ended December 31, 1996, net assets available for
benefits changed as follows:
<TABLE>
<CAPTION>
Tredegar
Short-Term Government Industries Stable
Investment Obligations Inc. Common Value Balanced Equity Loan
Fund Fund Stock Fund Fund Fund Fund Fund Total
<S> <C> <C> <C> <C> <C> <C> <C>
<C>
Additions to net assets
attributed to:
Investment income:
Interest $ 18,287 $ 118,338 $ 18,039 $ 129 $ 2,051 $ 4,311 $ 1,960 $ 163,115
Dividends - - 398,346 45 60 132 - 398,583
Net appreciation
(depreciation)
in the fair value
of investments - (59,855) 28,867,858 135,034 322,243 488,937 - 29,754,217
---------- ---------- ----------- ---------- ---------- ---------- -------- -----------
18,287 58,483 29,284,243 135,208 324,354 493,380 1,960 30,315,915
Contributions:
Employer - - 1,681,868 - - - - 1,681,868
Participants 331,990 305,091 1,381,320 299,030 490,983 944,784 - 3,753,198
---------- ---------- ----------- ---------- ---------- ---------- -------- -----------
331,990 305,091 3,063,188 299,030 490,983 944,784 - 5,435,066
---------- ---------- ----------- ---------- ---------- ---------- -------- -----------
Total additions 350,277 363,574 32,347,431 434,238 815,337 1,438,164 1,960 35,750,981
Deductions from net
assets attributed to:
Administrative
expenses 400 14,863 43,607 8,428 14,990 16,863 - 99,151
Withdrawals to
participating
employees 1,953,531 504,313 9,570,619 427,776 249,975 320,659 - 13,026,873
---------- ---------- ----------- ---------- ---------- ---------- -------- -----------
Total deductions 1,953,931 519,176 9,614,226 436,204 264,965 337,522 - 13,126,024
---------- ---------- ----------- ---------- ---------- ---------- -------- -----------
(1,603,654) (155,602) 22,733,205 (1,966) 550,372 1,100,642 1,960 22,624,957
Transfers:
Intraplan (718,584) (5,804,260) 500,331 4,547,406 2,935,518 3,383,031 154,368 4,997,810
To successor plan - (7,680) (70,050) - - - - (77,730)
---------- ---------- ----------- ---------- ---------- ---------- -------- -----------
Total transfers (718,584) (5,811,940) 430,281 4,547,406 2,935,518 3,383,031 154,368 4,920,080
---------- ---------- ----------- ---------- ---------- ---------- -------- -----------
Net increase (decrease)
for the year (2,322,238) (5,967,542) 23,163,486 4,545,440 3,485,890 4,483,673 156,328 27,545,037
Net assets available
for benefits:
Beginning of year 2,322,238 5,967,542 35,091,015 - - - - 43,380,795
---------- ---------- ----------- ---------- ---------- ---------- -------- -----------
End of year $ - $ - $58,254,501 $4,545,440 $3,485,890 $4,483,673 $156,328 $70,925,832
========== ========== =========== ========== ========== ========== ======== ===========
</TABLE>
<PAGE>
SAVINGS PLAN FOR THE EMPLOYEES OF TREDEGAR INDUSTRIES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997
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
Intraplan 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, 1997
4. Inactive funds
As of December 31, 1997, the following assets were available
for benefits:
<TABLE>
<CAPTION>
Ethyl Albemarle
Short-Term Corporation Corporation
Investment Common Common
Fund Stock Fund Stock Fund Total
<S> <C> <C> <C> <C>
Assets:
Investments:
Money market funds -
Wachovia Bank
Diversified Trust
Fund $13,607 $ 16,543 $ 1,746 $ 31,896
Common stocks:
Albemarle Corporation - - 2,410,253 2,410,253
Ethyl Corporation - 1,460,082 - 1,460,082
------- ---------- ---------- ----------
Total investments 13,607 1,476,625 2,411,999 3,902,231
Interest and dividends
receivable - 11,870 9,086 20,956
Cash 83 86 10 179
------- ---------- ---------- ----------
Net assets available for
benefits $13,690 $1,488,581 $2,421,095 $3,923,366
======= ========== ========== ==========
</TABLE>
<PAGE>
SAVINGS PLAN FOR THE EMPLOYEES OF TREDEGAR INDUSTRIES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997
4. Inactive funds (Continued)
As of December 31, 1996, the following net assets were
available for benefits:
<TABLE>
<CAPTION>
Ethyl First Colony Albemarle
Short-Term Corporation Corporation Corporation
Investment Common Common Common
Fund Stock Fund Stock Fund Stock Fund Total
<S> <C> <C> <C> <C> <C>
Assets:
Investments:
Money market funds -
Wachovia Bank
Diversified Trust
Fund $186,463 $ 6,533 $290,067 $ 582 $ 483,645
Common stocks:
Albemarle Corporation - - - 2,153,141 2,153,141
Ethyl Corporation - 2,132,959 - - 2,132,959
-------- ---------- -------- ---------- ----------
Total investments 186,463 2,139,492 290,067 2,153,723 4,769,745
Receivables:
Interest and dividends 899 29,002 9,959 8,550 48,410
Due from broker for
securities trades - 63,162 - 41,263 104,425
-------- ---------- -------- ---------- ----------
Total receivables 899 92,164 9,959 49,813 152,835
Cash - - 359 - 359
-------- ---------- -------- ---------- ----------
187,362 2,231,656 300,385 2,203,536 4,922,939
Accrued administrative
expenses 20 2 230 1 253
-------- ---------- -------- ---------- ----------
Net assets available for
benefits $187,342 $2,231,654 $300,155 $2,203,535 $4,922,686
======== ========== ======== ========== ==========
</TABLE>
<PAGE>
SAVINGS PLAN FOR THE EMPLOYEES OF TREDEGAR INDUSTRIES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997
4. Inactive funds (Continued)
For the year ended December 31, 1997, net assets available for
benefits changed as follows:
<TABLE>
<CAPTION>
Ethyl First Colony Albemarle
Short-Term Corporation Corporation Corporation
Investment Common Common Common
Fund Stock Fund Stock Fund Stock Fund Total
<S> <C> <C> <C> <C> <C>
Additions to net assets
attributable to:
Investment income:
Interest $ 2,847 $ 1,323 $ 106 $ 688 $ 4,964
Dividends - 90,104 - 34,261 124,365
Net appreciation
(depreciation) in
the fair value of
investments - (361,080) - 632,092 271,012
-------- --------- -------- ---------- ----------
Total additions 2,847 (269,653) 106 667,041 400,341
Deductions from net
assets attributed to:
Administrative
expenses 397 1,549 2 1,750 3,698
Withdrawals paid to
participating
employees 164,955 123,861 - 162,927 451,743
-------- ---------- -------- ---------- ----------
Total deductions 165,352 125,410 2 164,677 455,441
-------- ---------- -------- ---------- ----------
(162,505) (395,063) 104 502,364 (55,100)
Intraplan transfers (11,147) (348,010) (300,259) (284,804) (944,220)
-------- ---------- -------- ---------- ----------
Net increase (decrease)
for the year (173,652) (743,073) (300,155) 217,560 (999,320)
Net assets available
for benefits:
Beginning of year 187,342 2,231,654 300,155 2,203,535 4,922,686
-------- ---------- -------- ---------- ----------
End of year $ 13,690 $1,488,581 $ - $2,421,095 $3,923,366
======== ========== ======== ========== ==========
</TABLE>
<PAGE>
SAVINGS PLAN FOR THE EMPLOYEES OF TREDEGAR INDUSTRIES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997
4. Inactive funds (Continued)
For the year ended December 31, 1996, net assets available for
benefits changed as follows:
<TABLE>
<CAPTION>
Ethyl First Colony Albemarle
Short-Term Corporation Corporation Corporation
Investment Common Common Common
Fund Stock Fund Stock Fund Stock Fund Total
<S> <C> <C> <C> <C> <C>
Additions to net assets
attributable to:
Investment income:
Interest $ 12,802 $ 2,032 $ 11,093 $ 1,300 $ 27,227
Dividends - 139,990 31,187 34,947 206,124
Net appreciation
(depreciation) in
the fair value of
investments - (982,805) 715,983 (33,352) (300,174)
-------- ---------- ---------- ---------- -----------
Total additions 12,802 (840,783) 758,263 2,895 (66,823)
Deductions from net
assets attributed to:
Administrative
expenses 4,817 538 1,312 963 7,630
Withdrawals paid to
participating
employees 155,333 376,912 317,682 376,650 1,226,577
-------- ---------- ---------- ---------- -----------
Total deductions 160,150 377,450 318,994 377,613 1,234,207
-------- ---------- ---------- ---------- -----------
(147,348) (1,218,233) 439,269 (374,718) (1,301,030)
Transfers:
Intraplan 334,722 (1,207,374) (3,165,898) (959,260) (4,997,810)
To successor plan (32) (329) (253) (355) (969)
-------- ---------- ---------- ---------- -----------
Total transfers 334,690 (1,207,703) (3,166,151) (959,615) (4,998,779)
-------- ---------- ---------- ---------- -----------
Net increase (decrease)
for the year 187,342 (2,425,936) (2,726,882) (1,334,333) (6,299,809)
Net assets available
for benefits:
Beginning of year - 4,657,590 3,027,037 3,537,868 11,222,495
-------- ---------- ---------- ---------- -----------
End of year $187,342 $2,231,654 $ 300,155 $2,203,535 $ 4,922,686
======== ========== ========== ========== ===========
</TABLE>
<PAGE>
SAVINGS PLAN FOR THE EMPLOYEES OF TREDEGAR INDUSTRIES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997
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
Intraplan 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, 1997
5. Contributions and investment options
As of December 31, 1997 and 1996, there were 1,511 and 1,422
employees, respectively, participating in the Plan. Participation in
each fund was as follows:
Number of Participants
December 31,
1997 1996
Short-Term Investment Fund 39 143
Tredegar Industries, Inc. Common Stock Fund 1,424 1,375
Albemarle Corporation Common Stock Fund 204 243
Ethyl Corporation Common Stock Fund 196 234
Stable Value Fund 511 540
Balanced Fund 601 533
Equity Fund 917 807
As of December 31, 1997 and 1996, 2,171 and 1,971 employees,
respectively, were eligible to participate in the Plan.
Participants in the Plan currently may select a program for
investment in the Stable Value Fund, Balanced Fund, Equity Fund,
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 generally 50% of each nonrepresented
participant's contribution. 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) 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 Stable Value Fund, Balanced Fund,
Equity 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, 1997
5. Contributions and investment options (Continued)
Investments in the active funds are made primarily in various
actively managed commingled funds managed by the Frank Russell Trust
Company and Tredegar common stock. Investments in the Short-Term
Investment Fund are selected by Wachovia Bank, N.A. (Trustee), from
fund securities maturing within one year or revolving credit
arrangements that are completely liquid investments. Investments in the
common stock of Ethyl Corporation and Albemarle Corporation are now
held until liquidation or distribution under the Plan. 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 and money market funds.
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
of December 31, 1997 and 1996. Investments that represent five percent
or more of the Plan=s net assets are separately identified.
<TABLE>
FAIR VALUE OF INVESTMENTS
December 31, 1997
<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>
Investments at fair value as determined
by quoted market price:
Money market funds - Wachovia Bank
Diversified Trust Fund $ 99,158 $ 99,158
Common stocks:
Albemarle Corporation 100,953 556,834 2,410,253
Ethyl Corporation 189,917 1,027,436 1,460,082
Tredegar Industries, Inc. 1,347,247 15,006,131 88,749,896
----------- ------------
16,689,559 92,719,389
</TABLE>
<PAGE>
SAVINGS PLAN FOR THE EMPLOYEES OF TREDEGAR INDUSTRIES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997
6. Investments (Continued)
<TABLE>
<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>
Investments estimated at fair value:
Actively managed commingled funds:
Frank Russell Investment Contract Fund 303,399 5,542,604 5,958,153
Frank Russell Global Balanced Fund 238,220 4,105,608 5,196,770
Frank Russell Equity I Fund 247,666 5,062,350 7,049,564
Frank Russell Equity II Fund 30,327 586,015 784,621
Loans to participants $415,971 415,971 415,971
----------- ------------
15,712,548 19,405,079
Total investments $32,402,107 $112,124,468
=========== ============
</TABLE>
(1) Investments are carried in the statement of net assets available for
benefits at fair value.
<TABLE>
FAIR VALUE OF INVESTMENTS
December 31, 1996
<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>
Investments at fair value as determined
by quoted market price:
Money market funds:
Wachovia Bank Diversified Trust Fund $ 686,481 $ 686,481
Frank Russell Short Term Investment Fund 237 237
Common stocks:
Albemarle Corporation 118,794 615,585 2,153,141
Ethyl Corporation 224,522 1,133,967 2,132,959
Tredegar Industries, Inc. 1,444,660 13,861,815 57,966,983
----------- -----------
16,298,085 62,939,801
Investments estimated at fair value:
Actively managed commingled funds:
Frank Russell Investment Contract Fund 246,810 4,418,321 4,545,748
Frank Russell Global Balanced Fund 191,582 3,168,424 3,486,211
Frank Russell Equity I Fund 186,566 3,578,047 4,027,405
Frank Russell Equity II Fund 22,847 422,874 456,556
Loans to participants $156,328 156,328 156,328
----------- -----------
11,743,994 12,672,248
Total investments $28,042,079 $75,612,049
=========== ===========
</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, 1997
6. Investments (Continued)
Closing stock prices as of December 31, 1997 and 1996, were as
follows:
1997 1996
Albemarle Corporation common stock $23.875 $18.125
Ethyl Corporation common stock 7.688 9.500
Tredegar Industries, Inc. common stock 65.875 40.125
Frank Russell Investment Contract Fund 19.638 18.418
Frank Russell Global Balanced Fund 21.815 18.197
Frank Russell Equity I Fund 28.464 21.587
Frank Russell Equity II Fund 25.872 19.983
During the years ended December 31, 1997, 1996, and 1995, the
Plan's investment portfolio (including investments bought, sold and
held during the year) appreciated in value by $39,417,632, $29,454,043,
and $18,565,114 as follows:
<TABLE>
<CAPTION>
Net change in fair value
1997 1996 1995
---- ---- ----
<S> <C> <C> <C>
Investments at fair value as determined by
quoted market price:
United States government obligations $ - $ (59,855) $ 50,283
Tredegar Industries, Inc. common stock 36,258,606 28,867,859 16,046,706
Albemarle Corporation common stock 632,092 (33,352) 1,027,794
Ethyl Corporation common stock (361,080) (982,804) 1,060,532
First Colony Corporation common stock - 715,983 379,799
----------- ----------- -----------
36,529,618 28,507,831 18,565,114
Investments at estimated fair value:
Frank Russell Investment Contract Fund 319,389 135,033 -
Frank Russell Global Balanced Fund 806,777 322,243 -
Frank Russell Equity I Fund 1,581,478 455,074 -
Frank Russell Equity II Fund 180,370 33,862 -
----------- ----------- -----------
2,888,014 946,212 -
----------- ----------- -----------
Net change in fair value $39,417,632 $29,454,043 $18,565,114
=========== =========== ===========
</TABLE>
<PAGE>
SAVINGS PLAN FOR THE EMPLOYEES OF TREDEGAR INDUSTRIES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997
7. Federal income taxes
The Internal Revenue Service has determined and informed
Tredegar by a letter dated January 22, 1996, that the Plan and related
trust are designed in accordance with the applicable sections of the
Internal Revenue Code (IRC). The Plan has been amended since receiving
the determination letter. However, the Plan administrator and the
Plan=s tax counsel believe that the Plan is designed and is currently
being operated in compliance with the applicable requirements of the
IRC.
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 Stable Value Fund, Balanced Fund,
Equity Fund, or the Tredegar Industries, Inc. Common Stock Fund. Annual
distributions in the amount of $10,341, $140,036, and $1,822,924 were
paid from the Short-Term Investment Fund in February 1998, 1997, and
1996, respectively. The remaining balance, if any, is carried over in
the Short-Term Investment Fund.
9. Administrative expenses
The Plan is responsible for all trustee and investment
management fees. Tredegar pays for all other administrative expenses up
to an annual limit of $75,000. Any expenses in excess of this limit are
paid by the Plan.
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:
1997 $113,119
1996 100,102
1995 76,280
<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 5, 1998, 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,
1997.
PLOTT & WALTON, PC
June 15, 1998
