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

Hong Kong's TK eyes expansion, may buy Nypro Tool operation

September 19, 2014 2:49 pm ET

Hong Kong-based mold maker and plastics processor TK Group (Holdings) Ltd. said it's reached a tentative agreement to buy a tooling factory in...    More

Image

Foster building medical polymers plant

September 19, 2014 1:39 pm ET

Foster Delivery Science is investing $8 million in a new plant in Putnam, Conn., for production of medical polymer blends, as well as rods, film or...    More

Image

BP to restart damaged PTA unit in limited capacity by November

September 19, 2014 10:27 am ET

British Petroleum plc may restart its fire-damaged purified terephthalic acid (PTA) feedstock unit in South Carolina in late October or early...    More

Image

Bayer spinning off plastics business

September 18, 2014 8:49 am ET

Bayer AG will spin off its MaterialScience plastics group into a separate, publicly-traded company within the next 12 to 18 months.    More

Image

Investor group wants DuPont to split in two

September 18, 2014 7:37 pm ET

Investment firm Trian Fund Management LP is calling for plastics and chemicals giant DuPont Co. to split itself into two firms, one of which would inc...    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

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Thermoformed Packaging 2014 Market Review & Outlook – North America

This in-depth report analyzes economic and market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as growth strategies being implemented by thermoformed packaging companies.

Learn more

Upcoming Plastics News Events

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

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

More Events