Corrected: US Georgia Gulf Q1 net income rises to $35.3m on asset sales

02 May 2012 23:41  [Source: ICIS news]

Correction: In the ICIS news story headlined "US Georgia Gulf Q1 net income rises to $35.3m on asset sales" dated 2 May 2012, please read in the first paragraph …up from $12.1m … instead of …up $12.1m …. A corrected story follows.

HOUSTON (ICIS)--Georgia Gulf swung to a first-quarter net income of $35.3m (€26.8m), up from $12.1m from the same time last year, as a result of increased sales revenues in its building products and aromatics businesses and the sale of air separation assets at its Plaquemine, Louisiana, chlor-alkali facility, the US vinyls producer said on Wednesday.

Georgia Gulf reported first-quarter sales of $859.9m, compared with $787.9m in the first quarter of 2011. 

In the chlorovinyls segment, first-quarter net sales increased to $329.5m from $326.3m during the first quarter of 2011, while operating income rose to $51.9m compared with operating income of $37.7m in the same quarter in 2011. The company attributed the increase to a $17.4 million gain from the sale of air separation assets at the Plaquemine facility.

After factoring that in, the company said, the segment saw a $3.2m decrease in operating income because of a decline in overall sales volume caused by unplanned outages at the end of the fourth quarter of 2011 and the beginning of the first quarter of 2012 as well as higher costs for feedstock ethylene. Those factors were partially offset by increases in the sales price for caustic soda and vinyl resins as well as lower chlorine and natural gas costs, the company said.

In the aromatics segment, first quarter net sales were $343.2m, compared with $304.1m posted for the first quarter of 2011.

In the building products segment, first-quarter net sales were $187.2m a 19% jump from the $157.5m in net sales in the first quarter of 2011

“These operating results were the best Georgia Gulf has reported for the first quarter in the past six years and demonstrate the company’s improvement in generating shareholder value despite marginal economic conditions and a sluggish housing market,” said company CEO Paul Carrico

“We are cautiously optimistic that the North American housing market has started to recover after record low levels the past few years. We also expect that the cost advantage of domestic natural gas and growing global demand should provide solid support for attractive operating rates in the vinyl industry, especially for housing and water infrastructure applications,” said Carrico.

($1 = €0.76)

By: Ken Fountain

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