Low natural gas prices help Georgia Gulf results

By Frank Esposito
Senior Staff Reporter

Published: February 17, 2012 6:00 am ET

Related to this story

Topics Materials, Suppliers, Construction, Pipe/Profile/Tubing

ATLANTA (Feb. 17, 10:15 a.m. ET) — In the midst of a takeover battle, Georgia Gulf Corp. has released positive financial results for full-year 2011.

Atlanta-based Georgia Gulf – which has rejected two takeover offers from competitor Westlake Chemical Corp. since Jan. 17 – saw its sales grow 14 percent to more than $3.2 billion during 2011. The firm’s profit also jumped almost 36 percent to almost $58 million during the year, officials said in a Feb. 15 news release.

“Our financial performance in 2011 exceeded our 2010 results, as industry conditions continue to improve, driven by North America’s advantaged natural gas position,” President and CEO Paul Carrico said in the release.

Georgia Gulf’s chlorovinyls unit – including PVC resin and compounds – showed sales growth of almost 8 percent and operating income growth of 25 percent for the year. That unit was the largest of the firm’s three operating units in 2011, accounting for almost 41 percent of total sales.

The Building Products unit – including PVC siding and related products – enjoyed sales growth of more than 11 percent in 2011, but operating income tumbled 48 percent. Building Products was the smallest of the firm’s three units with about 28 percent of sales. The remainder of Georgia Gulf’s sales comes from its aromatic chemicals unit.

Houston-based Westlake most recently offered $35 per share to acquire Georgia Gulf, valuing the firm at about $1.2 billion. Georgia Gulf officials emphatically rejected that offer, just as they had a $30 per-share offer made in January. Westlake already owns about five percent of Georgia Gulf stock, but Georgia Gulf has adopted a “poison pill” plan to discourage Westlake from growing its stake.

Westlake’s interest in Georgia Gulf has sent Georgia Gulf’s stock price soaring more than 75 percent so far in 2012. The stock was at $34.40 per share in early trading Feb. 17.


Comments

Low natural gas prices help Georgia Gulf results

By Frank Esposito
Senior Staff Reporter

Published: February 17, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

Americhem beats weather woes at start of 2014 for good fiscal year

November 26, 2014 9:45 am ET

Gains from the automotive and construction markets provided a strong fiscal 2014 for Americhem Inc.    More

Image

PE prices drop for first time in two years, PP down 5 cents

November 26, 2014 10:22 am ET

North American polyethylene buyers might want to circle November 2014 in red on their calendars — since PE prices this month have fallen for...    More

Image

2014 US machinery shipments up 6 percent

November 25, 2014 5:17 pm ET

Through the first nine months of 2014 U.S. shipments of primary plastics equipment — for injection molding, blow molding and extrusion —...    More

Image

Globalization brings sizable growth, primarily in Asia

November 25, 2014 1:40 pm ET

In 1990, the year after Plastics News published our first issue, there were 33,000 injection molding machines sold worldwide. Fast forward to 2013,...    More

Image

Taipei Plas vandal and German firm trade lawsuits

November 25, 2014 1:26 pm ET

Taiwan businessman Karma Tang, who splashed red paint at German firm Baumüller GmbH's Taipei Plas booth, is in a messy legal battle.    More

Market Reports

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events