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Georgia Gulf Corporation (NYSE: GGC) today announced financial results for the quarter ended September 30, 2012.
The company reported net sales of $813.5 million for the third quarter of 2012, 12 percent lower than the net sales of $929.6 million reported for the third quarter of 2011. Georgia Gulf reported net income of $39.3 million, or $1.12 per diluted share, for the third quarter of 2012, compared to net income of $34.4 million, or $0.99 per diluted share, for the third quarter of the previous year. Net income for the third quarter of 2012 includes $14.8 million of pre-tax expense from transaction related costs, restructuring, and other expenses, a $1.1 million release of tax reserves related to the Royal Group prior to its acquisition by Georgia Gulf in 2006, and a $1.9 million pre-tax gain on sale of assets. Net income for the third quarter of 2011 includes an $8.1 million release of tax reserves related to the Royal Group prior to its acquisition by Georgia Gulf in 2006. Excluding these items, adjusted net income was $48.4 million, or $1.38 per diluted share for the third quarter of 2012 compared to adjusted net income of $26.3 million, or $0.75 per diluted share for the third quarter of 2011.
“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 Paul Carrico, president and chief executive officer. “I would like to express my congratulations and thanks to all the employees who made this happen by their dedicated efforts, particularly in the areas of safety, operations and superior customer service.
“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. “We believe our pending merger with PPG’s commodity chemicals business will create a chemicals and building products leader that is well positioned to benefit from this cost advantage and expanding global demand for our products.”