05 August 2008 23:13 [Source: ICIS news]
HOUSTON (ICIS news)--US polyvinyl chloride (PVC) producer Georgia Gulf reported on Tuesday a second-quarter net profit of $27.9m (€17.9m), compared with a loss of $4.22m reported for the same period of the previous year.
Much of the increase was due to asset sales, the company said.
Excluding the gains from the asset sales, operating income was flat year-over-year, Georgia Gulf said.
Net sales were $849.8m for the second quarter, down from $851.9m for the same time last year.
Cost of sales were $777.8m, up from $760.5m.
Selling, general and administrative expenses fell by $17.9m year over year. In addition, Georgia Gulf reported a pre-tax gain of $31.1m due to asset sales.
By segment, Georgia Gulf's chlorovinyl's reported second-quarter operating income of $38.8m, compared with $25.9m for the same time last year.
Window and door profiles and mouldings reported a loss of $1.56m, compared with an income of $3.27m in 2007.
Outdoor building products reported an income of $5.17m, compared with an income of $7.25m. Aromatics reported a loss of $3.05m compared with an operating income of $4.71m.
Throughout the quarter, Georgia Gulf remained in compliance with its debt covenants, the company said. However, the covenant requirements in the company's senior credit facility will tighten significantly through the first quarter of 2010.
Georgia Gulf expects its economic outlook to remain challenging into 2009. As such, it is expecting that in 2008, there could be a year-over-year drop as large as 15% in its earnings before interest, taxes, depreciation and amortisation (EBITDA).
($1 = €0.64)
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