US Georgia Gulf posts $230m Q3 profit on debt-for-equity swap
04 November 2009 22:55 [Source: ICIS news]
HOUSTON (ICIS news)--Georgia Gulf posted a $230.2m (€156.5m) third-quarter net profit, up from a net loss of $17.4m during the 2008 third quarter based on the successful completion of its debt-for-equity swap, the US polyvinyl chloride (PVC) producer said on Wednesday.
Net sales were $556.3m, a 32% decline from $818.6m in the year-earlier period because of lower prices resulting from lower feedstock and energy costs. However, volumes were higher year over year owing to two US Gulf coast hurricanes in the 2008 quarter, the company said.
“We generated stronger operating income compared to both the same quarter last year and the second quarter of 2009 despite a dramatic decline in caustic soda prices and continued softness in building and construction markets,” chief executive Paul Carrico said.
“Completing the debt-for-equity exchange reduced our debt by more than 50% and reduced our annual cash interest costs by nearly $70m, and our long-term bank amendment provides adjusted covenants until the end of 2011,” he added.
Likewise, its aromatics sales slumped 39.3% to $100.5m because of a 31% decline in sales prices and lower phenol and acetone sales volumes. The latter was a result of extremely difficult conditions in the North American housing and construction markets, the company said. ($1 = €0.68)
To discuss issues facing the chemical industry go to ICIS connect
By: Ben DuBose
+1 713 525 2653
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
| China Market Intelligence |
|
|
| Free White Paper (Jan 2011) |
|
Understand the key issues facing the industry in 2011 and 2012 to help you plan and budget effectively. Download it now >> |
Related Articles
- 05 May 10 23:06 Georgia Gulf posts $19m Q1 loss on one-time charge, sales up 55%
- 15 Jan 10 21:37 MOVES: US Georgia Gulf elects Noetzel as board chairman
- 22 Dec 09 16:00 Initial US MMA acetone settles up 2.75 cents
- 05 Nov 09 17:49 US weekly chemical railcar traffic rises for third time this year
- 05 Nov 09 16:49 Inventory boosts US Georgia Gulf after aromatics feedstock hikes
- 02 Nov 09 23:17 US October PVC contracts settle at a rollover
- 17 Sep 09 23:13 Georgia Gulf to convert 30.2m preferred stock to common shares
- 03 Sep 09 15:57 US Georgia Gulf revises 2008 books to erase doubt about future
- 05 Aug 09 17:06 US Georgia Gulf bullish on PVC, pessimistic on caustic
- 05 Aug 09 04:04 US Georgia Gulf swings into Q2 loss as sales plummet
- 30 Jul 09 22:33 US Georgia Gulf stock doubles after debt-for-equity swap
Latest News
- 21 May 12 13:00 VIDEO – ICIS Europe Lunchtime Bulletin 21 May 2012
- 21 May 12 12:00 NOON SNAPSHOT – Europe Markets Summary
- 21 May 12 11:51 Romanian gas price deregulation to push up feedstock costs – bank
- 21 May 12 11:46 EVENING SNAPSHOT - Asia Markets Summary
- 21 May 12 11:38 Eurozone construction output up 12.4% in March