Royal Parent Company Posts Sales Increase in Third QuarterNovember 8th, 2011 | Category: Industry News
Georgia Gulf released its financial results for the third quarter, and in the Building Products segment, net sales were $262.5 million—an increase of 18 percent (14 percent on a constant currency basis) compared to $222.9 million recorded for the same quarter in the prior year. This sales increase was primarily driven by the benefit of the sales volumes resulting from the Exterior Portfolio acquisition in February 2011, according to a company press release.
The segment’s operating income was $14.3 million for the third quarter of 2011, compared to $5.6 million of operating income during the same quarter of the prior year. The increase in operating income was primarily due to improved conversion costs, the addition of Exterior Portfolio and lower selling, general and administrative costs, offset in part by higher raw material costs and a less favorable geographic and product sales mix.
As of September 30, 2011, the company had $45.3 million of cash on hand as well as $247.9 million of borrowing capacity available under its asset-backed loan (ABL) facility. As of the end of the third quarter of 2011, liquidity had increased by approximately $78 million compared to the end of the second quarter of 2011 primarily due to the seasonal decrease in working capital needs of the business and operating income.
The company’s vinyl-based building and home improvement products, marketed under the Royal
Building Products and Exterior Portfolio brands, include door and window profiles, mouldings, siding, pipe and pipe fittings, and deck, fence and rail products.