Georgia Gulf Corporation (NYSE: GGC) today announced financial results for the quarter ended June 30, 2012.
The company reported net sales of $867.7 million for the second quarter of 2012, four percent higher than the net sales of $831.7 million reported for the second quarter of 2011. Georgia Gulf reported net income of $13.6 million, or $0.39 per diluted share, for the second quarter of 2012, compared to net income of $14.6 million, or $0.42 per diluted share, for the second quarter of the previous year. Net income for the second quarter of 2012 includes $6.6 million of pre-tax expense from transaction related costs, restructuring, and other expenses.
“Our operating results for the first half of 2012 improved over the first half of 2011 as the recovery in the housing and construction markets showed modest improvement,” said Paul Carrico, president and chief executive officer. “Going forward, we see low-cost natural gas in North America remaining globally advantaged as a source of energy. This will continue to place the Gulf Coast chlorovinyls producers in a strong position to supply domestic and export customers. Our recently announced merger with PPG’s commodity chemicals business will create a chemicals and building products leader that is very well positioned to benefit from this cost advantage and expanding global demand for our products.”
In the Chlorovinyls segment, second quarter 2012 net sales increased to $339.9 million from $323.7 million during the second quarter of 2011. The segment posted operating income of $34.5 million, compared to operating income of $37.8 million for the same quarter in the prior year. Operating income for the second quarter of 2011 includes a $1.2 million restructuring gain. After adjusting for the impact of the restructuring gain, the segment experienced a decrease in operating income of $2.1 million primarily due to higher maintenance expense, partially offset by an increase in resin sales volumes.