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GEORGIA GULF REPORTS $0.24 ON NET INCOME OF $10.1 MILLION AFTER TAX ADJUSTMENT

 ATLANTA, Oct. 20 /PRNewswire/ -- Georgia Gulf Corp. (NYSE: GGC) today reported net income of $10.1 million, earnings per share of $0.24 and sales of $199.6 million for the 1993 third quarter.
 The third quarter results include a charge of $1.3 million or $0.03 per share to reflect the increase in the federal income tax rate. Before the tax adjustment, net earnings were $11.4 million or $0.27 per share, as compared to $10.9 million and $0.26 per share on sales of $199.7 million for the 1992 third quarter. The company noted that the 1993 second quarter earnings were $11.5 million or $0.28 per share on sales of $195.2 million.
 The $1.3 million tax adjustment consists of a one-time, non-cash charge of $800,000 to revalue deferred tax balances and $500,000 to reflect the higher year-to-date tax provision.
 For the first nine months of this year, the company reported revenues of $576.7 million down from $582.3 million last year. Net income of $31.4 million, after tax adjustment, decreased from $37.4 million reported a year earlier. Earnings per share were $0.76 vs. $0.97 for the same period comparison.
 The company said earnings per share calculations for the nine-month comparisons were impacted by the greater number of shares outstanding after a May 1992 common stock offering of 6.1 million shares. The proceeds from this sale were used to reduce debt, thereby reducing interest expense and minimizing the effects of additional shares outstanding.
 For the three-month and nine-month periods ended Sept. 30, the company said operating income was $28.1 million and $83.8 million, respectively. This represents declines of 7 and 18 percent from the same periods last year. Explaining the declines, the company said that for the quarter-to-quarter comparison, a modest increase in overall volumes sold was offset by a decline in average sales prices for its products, most notably caustic soda. For the year-to-date comparison, sales volumes were steady while overall product margins were down on higher natural gas and electricity costs as well as lower caustic soda selling prices.
 The company also noted that interest expense was down by $3.5 million and $12.9 million for the three-month and nine-month periods ended Sept. 30. This is the result of first quarter 1993 debt refinancing and $55.6 million in debt reduction since the first of this year.
 Commenting on the results, Jerry R. Satrum, president and CEO said, "Operating income for the 1993 third quarter was about level with the second despite continued weakness in the markets driving caustic soda sales. Helping to offset the latter," Satrum added, "was an improvement in performance for some of our other chemicals, primarily methanol and vinyl products.
 Georgia Gulf, headquartered in Atlanta and listed on the NYSE (GGC), is a major manufacturer of several highly integrated lines of commodity chemicals and polymers including aromatic, natural gas and electrochemical products.
 GEORGIA GULF CORPORATION AND SUBSIDIARIES
 CONSOLIDATED BALANCE SHEETS
 (In thousands, except share data)
 (Unaudited)
 Sept. 30, Sept. 30,
 1993 1992
 ASSETS
 Current assets
 Cash and cash equivalents $ 3,667 $ 3,446
 Receivables 101,757 101,446
 Inventories 67,655 69,071
 Deferred income taxes 7,826 --
 Prepaid expenses 6,805 9,444
 Total current assets 187,710 183,407
 Property, plant and
 equipment, net 213,045 212,417
 Other assets 11,412 16,214
 Total assets $ 412,167 $ 412,038
 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
 Current liabilities
 Current portion of
 long-term debt $ 22,500 $ 34,309
 Accounts payable 63,993 66,925
 Interest payable 22,800 15,342
 Accrued income taxes 2,326 1,329
 Other accrued liabilities 20,783 19,868
 Total current liabilities 132,402 137,773
 Long-term debt 366,331 407,324
 Deferred income taxes 39,213 38,190
 Stockholders' equity (deficit) (125,779) (171,249)
 Total liabilities and
 stockholders' equity (deficit) $ 412,167 $ 412,038
 Common shares outstanding 40,626,858 40,199,439
 GEORGIA GULF CORPORATION AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF INCOME
 (In thousands, except share data)
 (Unaudited)
 3 Months Ended 9 Months Ended
 Sept. 30, Sept. 30,
 1993 1992 1993 1992
 Net sales $ 199,635 $ 199,690 $ 576,743 $ 582,296
 Operating costs and expenses
 Cost of sales (exclusive
 of depreciation) 156,336 154,460 446,539 436,157
 Depreciation 6,072 5,544 18,211 16,609
 Selling and administrative 9,140 9,348 28,149 27,680
 Total operating costs
 and expenses 171,548 169,352 492,899 480,446
 Operating income 28,087 30,338 83,844 101,850
 Other income (expense)
 Interest, net (10,844) (14,349) (34,086) (47,033)
 Income before income taxes,
 extraordinary charge and
 cumulative effect of
 accounting change 17,243 15,989 49,758 54,817
 Provision for income taxes 7,096 5,085 18,015 17,460
 Income before extraordinary
 charge and cumulative
 effect of acctg. chg. 10,147 10,904 31,743 37,357
 Extraordinary charge on early
 retirement of debt (net of
 tax benefit of $6,834) --- --- (13,267) ---
 Cumulative effect of
 accounting change for
 income taxes --- --- 12,973 ---
 Net income $ 10,147 $ 10,904 $ 31,449 $ 37,357
 Income per common share:
 Before extraordinary charge
 and cumulative effect of
 accounting change $ 0.24 $ 0.26 $ 0.76 $ 0.97
 Extraordinary charge on
 early retirement of debt --- --- (0.32) ---
 Cumulative effect of accounting
 change for income taxes --- --- 0.32 ---
 Net income per com. shr. $ 0.24 $ 0.26 $ 0.76 $ 0.97
 Weighted average common
 shares and equivalents
 outstanding 41,577,329 41,264,935 41,472,067 38,675,084
 -0- 10/20/93
 /CONTACT: John Walker of Georgia Gulf, 404-395-4587/
 (GGC)


CO: Georgia Gulf Corporation ST: Georgia IN: CHM SU: ERN

BN -- AT002 -- 4381 10/20/93 08:38 EDT
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Publication:PR Newswire
Date:Oct 20, 1993
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