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).
GEORGIA GULF (GGC): Free Stock Analysis
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