Georgia Gulf reported net sales of $524.3 million for the second quarter of 2009 compared to net sales of $849.8 million for the second quarter of 2008. The decrease in sales is primarily due to lower prices resulting from lower feedstock and energy costs and lower volumes driven by extremely difficult North American housing and construction market conditions.

Georgia Gulf reported a net loss of $3.0 million for the second quarter of 2009, compared to net income of $27.9 million during the same quarter in the previous year. The Company reported operating income of $5.1 million for the second quarter of 2009, compared to operating income of $63.1 million for the second quarter of 2008. The second quarter of 2009 includes pre-tax asset impairment and restructuring charges of $20.0 million primarily related to the consolidation of two window and door plants. The second quarter of 2008 includes a pre-tax gain from asset sales of $31.3 million and impairment and restructuring costs of $1.6 million. Excluding these items, operating income for the second quarter of 2009 was $25.1 million compared to operating income of $33.5 million in the second quarter of 2008.

"As previously discussed, we have taken aggressive steps to reduce costs during the last 18 months and these actions largely offset the impact of weak economic conditions in the second quarter," commented Paul Carrico, Georgia Gulf's President and CEO. "As announced last week, our successful debt-for-equity exchange reduces our debt by more than 50 percent. In addition, our annual cash interest costs will be reduced nearly $70 million, and our long-term bank amendment provides adjusted covenants until the end of 2011. With our new capital structure, we are a strong business partner positioned for long term growth in our chemicals and building products businesses," he added.

Chlorovinyls

In the Chlorovinyls segment, second quarter 2009 sales decreased to $232.0 million from $401.8 million during the second quarter of 2008. The segment posted operating income of $24.4 million compared to operating income of $38.8 million during the same quarter in the prior year. The decrease in operating income was primarily due to lower caustic and PVC sales volumes and lower caustic prices compared to the same quarter in the prior year.

Window & Door Profiles and Mouldings

In the Window & Door Profiles and Mouldings segment, sales were $92.4 million for the second quarter of 2009, compared to $118.3 million during the same quarter in the prior year. Sales on a constant currency basis declined 17 percent. The decline in sales reflects extremely difficult conditions in the North American housing and construction markets, particularly related to new home construction. The segment's operating loss was $16.0 million for the second quarter of 2009, compared to an operating loss of $1.6 million during the same quarter in the prior year. The decrease in operating income is primarily the result of asset impairments and restructuring costs of $17.8 million primarily related to the consolidation of two plants, partially offset by cost reductions. Despite double-digit volume declines, operating income excluding asset impairments and restructuring costs increased in the second quarter of 2009 compared to the second quarter of 2008.

Outdoor Building Products

In the Outdoor Building Products segment, sales were $124.0 million for the second quarter of 2009, compared to $167.1 million during the same quarter in the prior year. Sales on a constant currency basis declined 19 percent. The decrease in sales reflects the extremely difficult conditions in the North American housing and construction markets. The segment reported operating income of $8.4 million for the second quarter of 2009, compared to operating income of $5.2 million during the same quarter in the prior year. The increase in operating income is due to the impact of cost reduction actions, partially offset by lower sales volumes.

Aromatics

In the Aromatics segment, sales decreased to $76.0 million for the second quarter of 2009 from $162.7 million during the second quarter of 2008. The decrease in sales was driven by a 47 percent decline in sales prices and lower phenol and acetone sales volumes. The phenol and acetone sales volume decrease is due to extremely difficult conditions in the North American housing and construction markets. During the second quarter of 2009, the segment recorded operating income of $7.9 million, compared to an operating loss of $3.1 million during the same period last year. The increase in operating income was driven by stronger margins resulting from raw materials prices rising throughout the quarter and cost reductions, partially offset by lower volumes than the same quarter last year.

Liquidity and Shareholder's Equity Update

As of June 30, 2009, the Company had $112.0 million of liquidity, consisting of $104.3 million of cash on hand as well as $7.7 million of borrowing capacity available under its revolving credit facility. Additionally, as of June 30, 2009, the Company had $87.8 million outstanding under its $175 million accounts receivables securitization facility.

On July 29, 2009, the Company consummated a private debt-for-equity exchange of its equity securities for approximately $736.0 million, or 92.0 percent, in aggregate principal amount of outstanding notes in exchange for approximately 30.2 million shares of convertible preferred stock and 1.3 million shares of common stock. A special meeting of shareholders will be scheduled and shareholders will vote on an amendment to the Company's charter to increase the number of authorized shares of common stock to 100 million as well as a new equity incentive plan for Company employees. Upon approval and filing of the charter amendment, the convertible preferred stock will automatically convert to common stock on a share for share basis, resulting in approximately 32.9 million shares of common stock outstanding.

Conference Call

The Company will discuss second quarter 2009 financial results and business developments via conference call and Webcast on Wednesday, August 5, 2009 at 10:00 a.m. ET. To access the Company's second quarter conference call, please dial 888-552-7928 (domestic) or 706-679-6164 (international). To access the conference call via Webcast, log on to http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=112207&eventID=2358290. Playbacks will be available from 11:00 a.m. ET Wednesday, August 5, to midnight ET Wednesday, August 12. Playback numbers are 800-642-1687 (domestic) or 706-645-9291 (international). The conference call ID number is 23078260.

Georgia Gulf

Georgia Gulf Corporation is a leading, integrated North American manufacturer of two chemical lines, chlorovinyls and aromatics, and manufactures vinyl-based building and home improvement products. The Company's vinyl-based building and home improvement products, marketed under Royal Group brands, include window and door profiles, mouldings, siding, pipe and pipe fittings, and deck, fence and rail products.