Georgia Gulf Corp.’s (GGC) Building Products segment--whose products sell under the Royal Building Products and Exterior Portfolio brands--reported yesterday its operating loss for the fourth quarter nearly doubled to $11.6 million from $6.1 million in the year-earlier period despite an 8.8% increase in net sales to $189.7 million.
The loss comes largely as the result of a $10.7 million charge stemming from the company’s halt of its fence product line, Atlanta-based GGC said. In a related development, GGC said it plans to consolidate two window and door facilities and a small pipe facility, all in Canada, to cut operating costs without hampering material production.
As for the sales growth, company officials cited increased volumes from its February 2011 acquisition of Exterior Portfolio Co.
Company wide, GGC swung to a net loss of $3.3 million in the fourth-quarter from a year-earlier $15.1 million net profit as net sales fell 2.8% to $673.6 million. The loss stems largely from an $8.3 million asset impairment charge, a $1.1 million restructuring expense, and a $3.8 million loss on the early redemption of debt. For the year, net income for all GGC rose by about a third to $57.8 million from $42.7 million on a 14% gain in net sales to $3.2 billion.
