Net Sales for Georgia Gulf’s Building Products Segment Increases 19-Percent in First QuarterMay 3rd, 2012 by DWM Magazine
In announcing its financial results for the quarter ended March 31, 2012, Georgia Gulf Corp., parent of Royal Building Products, reported that its Building Products segment had net sales of $187.2 million for the first quarter of 2012, increasing 19 percent on a reported basis compared to $157.5 million recorded for the same quarter in the prior year. On a constant currency basis, sales increased 20 percent, according to the announcement, which also notes that this sales increase was primarily driven by the benefit of higher sales volumes, including sales volumes resulting from the Exterior Portfolio acquisition in February 2011. Excluding the impact of Exterior Portfolio, sales increased 13 percent.
The segment’s operating loss was $6.4 million for the first quarter of 2012, compared to $12.1 million of operating loss during the same quarter of the prior year. The reduction in operating loss resulted from improved gross margins as a result of higher sales volumes, improved conversion costs and the addition of Exterior Portfolio, according to the announcement. These positive impacts were partially offset by higher material and selling, general and administrative costs, according to the company. The first quarter of 2011 included the net benefit of $1.2 million relating to a $3.6 million reversal of a non-income tax reserve, partially offset by acquisition costs and one-time fair value amortization of inventory of $2.4 million relating to the Exterior Portfolio acquisition, reports the announcement.
Company wide, Georgia Gulf reported net sales of $859.9 million for the first quarter of 2012, 9 percent higher than the net sales of $787.9 million reported for the first quarter of 2011. Its net income was $35.3 million, or $1.01 per diluted share, for the first quarter of 2012, compared to net income of $12.1 million, or 35 cents per diluted share, for the first quarter of the previous year. Net income for the first quarter of 2012 includes a pre-tax $12.4 million net benefit from gain on sale of assets, restructuring and other.