Operating income at Georgia Gulf's building products segment fell 9.6%, compared to the same period a year ago, to $16.9 million, despite a 12% jump in sales to $274.2 million during the second quarter ended June 30, the company announced today.
The operating income results for second quarter 2011 included inventory purchase accounting adjustments as well as a $400,000 restructuring expense related to the company's February acquisition of Exterior Portfolio., while 2010's second quarter results included a $1.5 million reversal of non-income tax reserves.
The Atlanta-based company cited an increase in sales volume from the Exterior Portfolio acquisition as the reason behind the segment's performance. Georgia Gulf also said its geographic and product sales mix was less than favorable during the quarter, which lead to a lower operating income.
Georgia Gulf's chlorovinyls segment posted a 4.4% increase in operating income to $37.8 million and a 7.6% increase in sales to $323.7 million. The company's aromatics segment remained in the red, however, but managed to improve its standing by more than $300,000 with an operating loss of $7.4 million. Net sales for the segment jumped 22% to $233.9 million.
Overall, the company's net income fell 32.7% to $14.6 million, despite a 12% increase in sales to $831.7 million. Operating income for the quarter fell 6.3% to $35.5 million.
While president and CEO Paul Carrico noted that net income was up by $44 million during the first half of 2011, he said it hadn't been easy. Unexpected natural occurrences, such as high waters on the Mississippi River and a chloralkali shortage made things difficult.
"With these unplanned events behind us, we expect our results for the second half of 2011 to reflect the broader North American chemicals industry recovery that is being driven by North America's natural gas advantage and global demand," Carrico said.