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GEORGIA GULF REPORTS $0.28 ON NET INCOME OF $11.5 MILLION

 ATLANTA, July 20 /PRNewswire/ -- Georgia Gulf Corp. (NYSE: GGC) today reported net income of $11.5 million, earnings per share of $0.28 and sales of $195.2 million for the 1993 second quarter.
 This compares to net income of $13.5 million, earnings per share of $0.35 and sales of $193.0 million for the same 1992 period.
 For the first six months of this year, the company reported revenues of $377.1 million down from $382.6 million last year. Net income of $21.3 million decreased from $26.5 million reported a year earlier. Earnings per share were $0.51 vs. $0.71 for the same period comparison.
 The company said earnings per share calculations for these period comparisons were impacted by the greater number of shares outstanding after a May 1992 secondary offering of 6.1 million shares of common stock. 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 six-month periods ended June 30, the company said operating income was $28.6 million and $55.8 million, respectively. This represents declines of 19 and 22 percent from the same periods last year. Explaining the declines, the company said that overall volumes sold remained relatively level while a softening of average sales prices and higher raw material costs were the primary factors negatively impacting the company's operating performance.
 While overall product pricing generally remained below last year's levels, the six-month comparison was most impacted by a substantial drop in caustic soda pricing during the first half of this year, which the company believes reflects a continued weakness in certain end-use markets for that product.
 Commenting on the results, Jerry R. Satrum, president and CEO, said: "Despite the weakness in caustic soda markets, there has been improvement since the first quarter in volumes for some of our other products. We are particularly pleased with the present level of sales activity for vinyl resin and compounds.
 "There has been some improvement in operating income in the second quarter as compared to the first, and whether we can maintain this forward earnings momentum," Satrum said, "largely depends on the economy and its effects on key markets requiring the use of our products such as the pulp and paper, aluminum, construction and automotive industries."
 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)
 June 30 1993 1992
 ASSETS
 Current assets
 Cash and cash equivalents $ 2,668 $ 6,340
 Receivables 100,811 101,305
 Inventories 77,679 70,060
 Deferred income 7,618 ---
 Prepaid expenses 8,712 9,850
 Total current assets 197,488 188,455
 Property, plant and equipment, net 212,464 214,946
 Other assets 11,305 17,294
 Total assets $ 421,257 $ 420,695
 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
 Current liabilities
 Current portion of long-term debt $ 22,500 $ 35,585
 Accounts payable 64,640 61,217
 Interest payable 18,449 11,380
 Accrued income taxes 2,487 1,955
 Other accrued liabilities 19,078 18,358
 Total current liabilities 127,154 128,495
 Long-term debt 396,606 441,354
 Deferred income taxes 36,032 37,741
 Stockholders' equity (deficit) (138,535) (186,895)
 Total liabilities and
 stockholders' equity (deficit) $ 421,257 $ 420,695
 Common stock outstanding 40,405,039 39,851,471
 GEORGIA GULF CORPORATION AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF INCOME
 (In thousands, except share data)
 (Unaudited)
 3 Months Ended 6 Months Ended
 June 30 June 30 June 30 June 30
 1993 1992 1993 1992
 Net sales $ 195,202 $ 192,969 $ 377,108 $ 382,606
 Operating costs and expenses
 Cost of sales (exclusive
 of depreciation) 151,184 142,816 290,203 281,697
 Depreciation 6,078 5,571 12,139 11,065
 Selling and administrative 9,292 9,176 19,009 18,332
 Total operating costs
 and expenses 166,554 157,563 321,351 311,094
 Operating income 28,648 35,406 55,757 7 taxes,
 extraordinary charge and
 cumulative effect of
 accounting change 17,297 19,830 32,515 38,828
 Provision for income taxes 5,821 6,327 10,919 12,375
 Income before extraordinary
 charge and cumulative
 effect of acctg. change 11,476 13,503 21,596 26,453
 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 $ 11,476 $ 13,503 $ 21,302 $ 26,453
 Income per common share:
 Before extraordinary charge
 and cumulative effect of
 accounting change $0.28 $0.35 $0.51 $0.71
 Extraordinary charge on
 early retirement of debt --- --- (0.32) ---
 Cumulative effect of accounting
 change for income taxes --- --- 0.32 ---
 Net income per common share $0.28 $0.35 $0.51 $0.71
 Weighted average common
 shares and equivalents
 outstanding 41,510,111 38,972,060 41,514,866 37,166,198
 -0- 7/20/93
 /CONTACT: John Walker of Georgia Gulf, 404-395-4587/
 (GGC)


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

BN-CS -- AT002 -- 6557 07/20/93 08:29 EDT
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Date:Jul 20, 1993
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