Georgia Gulf Corporation (GGC) has unveiled preliminary results for 2012. The Atlanta-based building materials and chemicals company expects to rake in net sales of around $3.3 billion for the year, a roughly 3% year-over-year rise.
Georgia Gulf also expects to record adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of between $330 million and $340 million for 2012. It had around $200 million of cash and cash equivalents and $448 million in total debt as of December 31, 2012.
Georgia Gulf noted that it benefited from improved operating rates and strong export demand for chemical products in the fourth quarter. The results were also helped by better pricing and favorable feedstock costs. The company is expected to release its fourth quarter and full-year 2012 results on February 11.
Separately, Georgia Gulf said that following its pending merger with PPG Industries’ (PPG) commodity chemicals business, the integrated entity will be known as “Axiall Corporation” and will trade on the NYSE under the ticker symbol “AXLL”.
The company, in July 2012, announced a definitive agreement with PPG, under which, the latter will split its commodity chemicals unit and merge it with Georgia Gulf. The deal value of roughly $2.1 billion includes $95 million of debt.
Under the agreement, PPG shareholders will receive 50.5% of the shares of the merged entity while Georgia Gulf shareholders owning the balance. The shareholders of PPG will get $1 billion in Georgia Gulf shares. The transaction is expected to consummate in late January 2013.
Georgia Gulf is a leading maker of chlorovinyls and aromatics. It also makes vinyl-based building and home improvement products which are marketed under Royal Building Products and Exterior Portfolio brands. The company has manufacturing facilities located throughout North America.
Georgia Gulf currently holds a short-term (1 to 3 months) Zacks Rank #1 (Strong Buy).
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