Axiall Reports Third-Quarter ResultsNovember 7th, 2013 | Category: Industry News
Axiall Corp., parent company to Royal Building Products, announced financial results for the quarter ended September 30, 2013, and reported net sales of $1.2 billion for the third quarter, compared to net sales of $813.5 million for the third quarter of 2012.
“In our chemicals business, the energy advantage continued to support strong export demand and, as previously identified, the merged organization is focused on leveraging the combined assets to achieve synergy objectives and take advantage of our diverse portfolio – particularly serving the merchant chlorine, derivatives and vinyls markets,” said Paul Carrico, president and CEO. “With these efforts, we achieved a significant milestone by surpassing our year-one synergy target of a $60 million run rate after just three quarters. We now are focused on leveraging this flexibility and our strong operating rates to create synergies in excess of our year-end 2014 target of $115 million.
“We continue to be encouraged by the North American advantage in energy and the increasing
evidence of a U.S. housing recovery. During the third quarter, our building products business grew sales volume 10 percent and expanded margins,” Carrico said.
In the building products segment, net sales were $253.4 million for the third quarter, compared to $246.2 million for the same quarter in the prior year. The net sales increase was driven by a 26-percent increase in U.S. sales volume, partially offset by a 3-percent decrease in sales volume in Canada. The third quarter of 2013 also includes a $24.9 million non-cash goodwill and intangibles impairment charge related to our window and door profiles business as well as a $2.9 million restructuring charge related to plant footprint reductions. The segment’s Adjusted EBITDA was $31.1 million for the third quarter of 2013, compared to $24.9 million of Adjusted EBITDA during the same quarter of the prior year. The $6.2 million increase was primarily due to higher sales volumes, improved conversion costs, and lower selling, general and administrative costs.