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GEORGIA GULF REPORTS $0.35 PER SHARE ON NET INCOME OF $12.1 MILLION

GEORGIA GULF REPORTS $0.35 PER SHARE ON NET INCOME OF $12.1 MILLION
 ATLANTA, Jan. 21 /PRNewswire/ -- Georgia Gulf Corp. (NYSE: GGC) today reported earnings per share of $0.35 on net income of $12.1 million and sales of $182.3 million for the 1991 fourth quarter.
 This compares to earnings of $0.56 per share, net income of $19.1 million and sales of $229.0 million for the same 1990 period.
 On a 12-month comparison, 1991 net income was $61.5 million, down from $95.3 million the prior year. Earnings per share were $1.75 in 1991 as compared to $3.07 for 1990. Revenues for 1991 were $838.3 million as compared to $932.1 million in 1990.
 Georgia Gulf said that 1991 to 1990 annual comparisons were impacted by the company's plan of recapitalization completed in April of 1990. As a result, 1990 year-to-date net income included a one-time restructuring charge. In addition, the recapitalization increased interest expense and the number of shares outstanding.
 When comparing the 1991 to 1990 fourth quarter and 12-month periods, the company noted that revenues were down on lower sales prices for most products. Also, the company said that earnings declined on generally weaker product margins as a drop in sales prices was not sufficiently offset by lower raw material costs.
 Commenting on the company's results, Jerry R. Satrum, president and CEO, said: "Operating income continued a downward trend from $42.7 million reported for the third quarter to $36.5 million for the fourth. The decline between the two quarters was primarily the result of a 10 percent drop in sales volume, which is the first time in 1991 that we've been unable to increase the volume of products sold over the previous quarter. In addition, we experienced higher than anticipated raw material costs for the quarter.
 "We believe that this performance was impacted by a continuing decline in the general economy along with the substantial effects of seasonality seen in December," Satrum said. "While fourth quarter earnings are a little less than anticipated, cash flow is still quite good and was certainly sufficient to cover our debt obligations as well as planned capital expenditures.
 "As we begin 1992, we do so with enthusiasm as the opportunities available in our businesses should be substantial in the months and years ahead. However, at this point," Satrum added, "there is little or no sign of a recovery in most of the markets we serve and a recovery needs to occur in order for us to see any substantial improvements in earnings. But again, we have reason to be optimistic for the future as short-term interest rates, which are at a 15-year low, should stimulate many of those markets."
 Georgia Gulf, headquartered in Atlanta and listed on the NYSE, 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)
 12/31/91 12/31/90
 ASSETS
 Current assets
 Cash and cash equivalents $ 2,509 $ 5,523
 Receivables 88,650 117,641
 Inventories 74,779 86,012
 Prepaid expenses 9,730 8,490
 Total current assets 175,668 217,666
 Property, plant and equipment, net 220,644 214,749
 Other assets 19,273 24,242
 Total assets $ 415,585 $ 456,657
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Current liabilities
 Current portion of long-term debt $ 51,119 $ 43,000
 Accounts payable 63,530 75,001
 Interest payable 10,605 8,901
 Accrued income taxes 2,000 8,276
 Other accrued liabilities 21,636 26,255
 Total current liabilities 148,890 161,433
 Long-term debt 588,034 683,481
 Deferred income taxes 36,173 36,219
 Stockholders' equity (deficit) (357,512) (424,476)
 Total liabilities and
 stockholders' equity $ 415,585 $ 456,657
 Common stock outstanding 33,710,594 33,607,634
 GEORGIA GULF CORPORATION AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF INCOME
 (In thousands, except share data)
 3 Months Ended Year Ended
 12/31/91 12/31/90 12/31/91 12/31/90
 Net sales $ 182,315 $ 229,004 $ 838,336 $ 932,104
 Operating costs and expenses
 Cost of sales (exclusive
 of depreciation) 129,830 166,115 606,705 645,850
 Depreciation 5,212 4,721 19,967 15,598
 Selling and administrative 10,691 8,235 40,849 40,841
 Amortization of intangible
 assets 67 64 280 1,246
 Total operating costs
 and expenses 145,800 179,135 667,801 703,535
 Operating income 36,515 49,869 170,535 228,569
 Other income (expense)
 Recapitalization expense --- --- --- (17,869)
 Interest, net (18,722) (22,894) (80,280) (60,656)
 Income before income taxes 17,793 26,975 90,255 150,044
 Provision for income taxes 5,649 7,903 28,782 54,700
 Net income $ 12,144 $ 19,072 $ 61,473 $ 95,344
 Net income per common
 share $ 0.35 $ 0.56 $ 1.75 $ 3.07
 Weighted average common
 shares and equivalents
 outstanding 35,155,002 34,322,409 35,142,652 31,069,261
 -0- 1/21/92
 /CONTACT: John Walker of Georgia Gulf, 404-395-4587/
 (GGC) CO: Georgia Gulf Corporation ST: Georgia IN: CHM SU: ERN


BN-BR -- AT002 -- 1631 01/21/92 08:13 EST
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