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People & Business :: Companies

Weak Construction Markets Tear Down Georgia Gulf Earnings

12:43 PM MDT | July 25, 2007 | Peck Hwee Sim

Georgia Gulf swung to a net loss of $34.6 million, $1.01/share, for the first quarter, significantly lagging analysts’ consensus estimates of 35 cts/share. The company reported net income of $33.7 million for the year-ago period. Sales were up 26%, to $713.7 million, because of a $214-million contribution from Royal Group’s polyvinyl chloride (PVC) fabricated products. The company acquired Royal Group last year. Georgia Gulf’s legacy chemical sales were down 12% year-on-year, however, to $500 million. “We recorded a significant loss in the...

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