Chemicals manufacturer Georgia Gulf Corp. attributed a 12.9% decline in first-quarter profit to decreased sales in its aromatics business.
The company posted a net income of $33.7 million, or 98 cents per share on sales of $567.9 million in first-quarter 2006 compared with a net income of $38.7 million, or $1.13 per share on sales of $645.4 million a year earlier.
The aromatics business, which produces phenol used in adhesives for wood products and acetone, incurred a $5 million operating loss in the first quarter. The company cited pressure from global industry capacity additions and decreased export demand as main reasons for the decline.
"As for the second quarter of 2006, our aromatics business is expected to perform similarly to the first quarter, and we believe the chlorovinyls business will continue to perform well," said Ed Schmitt, chairman, president and CEO of Georgia Gulf Corp. in an April 27 statement.
The chlorovinyls business posted a 28% increase in operating income. The increase was the result of improved sales volumes for chlorovinyls products and lower energy and ethylene costs.
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