07 November 2012 00:10 [Source: ICIS news]
HOUSTON (ICIS)--US-based vinyls producer Georgia Gulf on Tuesday announced a third quarter net income of $39.3m (€30.7m), up from $34.4m from the same time last year.
Georgia Gulf reported third quarter sales of $813.5m, which was 12% lower than the $929.6m in sales reported in the second quarter of 2011. However, cost of sales were $673.2m, down 19% from $831.8m reported for the same time last year.
In the chlorovinyls segment, third quarter net sales fell to $329.1m from the $347.2m reported in the same period of last year, which the company attributed to lower vinyl resin sales prices partially offset by higher vinyl resin sales volumes and higher caustic soda prices. Third quarter operating income was $73.8m, up from $46.3m in the same period of 2011.
In the aromatics segment, third quarter net sales were $238.2m, down from the $319.9m posted in the same period of 2011. Operating income was $11.1m, substantially higher than the $1.7m operating income reported for the segment in the third quarter of 2011.
The company attributed the increase in operating income to a small inventory holding gain in the third quarter of 2012 compared with a large inventory holding loss in the same period of the year before, partially offset by lower sales volumes.
In the building products segment, third quarter net sales were $246.2m, down from the $262.5m posted in the same quarter of 2011. The company said the decrease was driven by lower sales volumes and the March 2012 discontinuation of a fence line product line.
“We are very pleased with the results for the third quarter as the performance, when combined with the first two quarters, exceeded our expectations in all business segments for the first nine months of the year,” said company CEO Paul Carrico.
Carrico also said the pending merger with the commodity chemicals business of PPG Industries would enhance its position in the wake of a US operating cost advantage over other areas of the world.
“Going forward, we believe low-cost natural gas in North America will remain globally advantaged as a source of energy. We expect this to place the Gulf coast chlorovinyls producers in a strong position to supply domestic and export customers,” Carrico said.
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