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GEORGIA GULF REPORTS FIRST QUARTER EPS OF $0.24

 ATLANTA, April 20 /PRNewswire/ -- Georgia Gulf Corp. (NYSE: GGC) today reported earnings per share of $0.24 on net income of $9.8 million and sales of $181.9 million for the 1993 first quarter.
 This compares to earnings of $0.37 per share, net income of $13.0 million and sales of $189.6 million for the first three months of 1992.
 Operating income for the same period comparison declined 25 percent to $27.1 million for the first three months of 1993 from $36.1 million for the first quarter of 1992. Overall, the company said, sales volume was off five percent while gross margin declined almost four percent, and the combination of these factors reduced operating income for this period comparison. In comparing the sequential quarters ended December 31, 1992, and March 31, 1993, operating income was level reflecting improvement for some products, offsetting the weakness in others, the company added.
 When comparing the first quarter of 1992 to the first quarter of 1993, net income was favorably impacted by a $5.2 million reduction in interest expense. The company said, this was the result of substantial debt repayment, which included use of funds from a common stock offering as well as lower interest rates.
 During the first quarter of 1993, the company refinanced its debt facility resulting in more financial flexibility and lower interest rates going forward, the company said. As a result of the refinancing, the company incurred a 1993 first quarter extraordinary charge of $13.3 million in costs related to the early retirement of that facility. This was, however, almost entirely offset by a $13.0 million favorable benefit realized from the cumulative effect of an accounting change for income taxes, the company added.
 Commenting on the results, Jerry R. Satrum, president and CEO, said, "Since the first of the year, we have observed some improvement in the economy, and this has had a positive impact on demand for some of our products related to the construction, remodeling and durable goods markets.
 "There are some concerns though about the timing of the recovery for the pulp and paper and aluminum industries as well as European economies, and this will continue to have a considerable impact on portions of our chlor-alkali business," Satrum said. "However, hopefully the improvement in our other markets will result in overall earnings growth in the coming months."
 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)
 March 31, March 31,
 1993 1992
 ASSETS
 Current assets
 Cash and cash equivalents $ 4,502 $ 3,882
 Receivables 105,159 96,322
 Inventories 76,878 67,549
 Deferred income taxes 7,618 --
 Prepaid expenses 11,248 8,542
 Total current assets 205,405 176,295
 Property, plant and equipment, net 210,858 217,953
 Other assets 11,938 18,140
 Total assets $ 428,201 $ 412,388
 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
 Current liabilities
 Current portion of long-term debt $ 22,500 $ 53,623
 Accounts payable 63,438 60,229
 Interest payable 23,837 18,429
 Accrued income taxes -- 7,485
 Other accrued liabilities 17,664 22,170
 Total current liabilities 127,439 161,936
 Long-term debt 415,581 558,568
 Deferred income taxes 36,208 36,253
 Stockholders' equity (deficit) (151,027) (344,369)
 Total liabilities and
 stockholders' equity (deficit) $ 428,201 $ 412,388
 Common stock outstanding 40,334,314 33,748,594
 GEORGIA GULF CORPORATION AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF INCOME
 (In thousands, except share data)
 (Unaudited)
 Three Months Ended
 March 31, March 31,
 1993 1992
 Net sales $ 181,906 $ 189,637
 Operating costs and expenses
 Cost of sales (exclusive
 of depreciation) 139,019 138,881
 Depreciation 6,061 5,494
 Selling and administrative 9,717 9,156
 Total operating costs and expenses 154,797 153,531
 Operating income 27,109 36,106
 Other income (expense)
 Interest, net (11,891) (17,108)
 Income before income taxes
 extraordinary charge and
 cumulative effect of
 accounting change 15,218 18,998
 Provision for income taxes 5,098 6,048
 Income before extraordinary
 charge and cumulative
 effect of accounting change 10,120 12,950
 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 $ 9,826 $ 12,950
 Income per common share:
 Before extraordinary charge
 and cumulative effect of
 accounting change $ 0.24 $ .37
 Extraordinary charge on
 early retirement of debt (0.32) --
 Cumulative effect of accounting
 change for income taxes .32 --
 Net income per common share $ .24 $ .37
 Weighted average common
 shares and equivalents
 outstanding 41,602,335 35,239,711
 -0- 4/20/93
 /CONTACT: John Walker of Georgia Gulf, 404-395-4587/
 (GGC)


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

BR -- AT004 -- 7781 04/20/93 08:25 EDT
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Date:Apr 20, 1993
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