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
Companies & Associations

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

US engineering plastics demand

April 20, 2015 2:29 pm ET

   More

Image

Ford moving forward in carbon fiber for 'high volume' use

April 17, 2015 10:21 am ET

Ford Motor Co. has signed a deal with a carbon-fiber manufacturer to jointly explore “high-volume” automotive uses for the lightweight...    More

Image

Force majeure declared at six European sites since mid-March

April 17, 2015 1:10 pm ET

At least six European resin makers have declared force majeure on polyethylene, polypropylene and related products since mid-March, leading to higher ...    More

Image

Executives step down from Star Thermoplastics

April 17, 2015 12:56 pm ET

Executives Randall Fortin and Larry Johnson no longer are with materials firm Star Thermoplastics Alloys & Rubbers Inc.    More

Image

Zoltek expanding CF capacity in Europe

April 17, 2015 10:12 am ET

Leading carbon fiber group Zoltek Corp. has signed a strategic agreement with the Hungarian government to expand its operation in northern Hungary, al...    More

Market Reports

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

Injection Molding Market Analysis & Processor Rankings

Plastics News BUNDLED package contains our in-depth Market Analysis of the Injection Molding segment. You will gain keen insight on current trends and our economic outlook.

As a BONUS this includes PN's updated 2014 database of North American Injection Molders RANKED by sales volume. Sort, merge, mail & prospect by end market, materials processed, region, # of plants and more.

Learn more

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

Upcoming Plastics News Events

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

September 15, 2015 - September 17, 2015Plastics Caps & Closures - September 2015

More Events