Georgia Gulf Corporation Q3 2009 Earnings Call Transcript

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2009-11-05 12:21:10.0

Tags: Call Transcript, Quarter, Earnings, Pricing, Marketing, Seeking Alpha, Georgia Gulf Corp.

Question-and-Answer Session

Operator

(Operator Instructions). Your first question comes from Frank Mitsch with BB&T Capital Markets.

Frank Mitsch - BB&T Capital Markets

Looking forward to steady share counts, et cetera, into the future, I think you indicated that your cash interest expense is $18 million for the third quarter. Is that a reasonable level for the fourth quarter and beyond?

Greg Thompson

Yeah, I think so. I guess, to the extent we pay more debt down or borrow more based upon the seasonality of the business, it could fluctuate a bit. I think that's a pretty reasonable kind of midrange that we would expect going forward.

Frank Mitsch - BB&T Capital Markets

You also indicated that you had roughly a $30 million year-over-year swing in FIFO in the third quarter, a big negative a year ago and a modest positive this quarter. All else being equal where pricing is today, how would you anticipate that plays into the fourth quarter?

Greg Thompson

Yeah, I guess I would think there might be a small positive, but based upon what we see right now, I don't see a big move in that in the fourth quarter.

Frank Mitsch - BB&T Capital Markets

Paul, you did a nice job of reminding us about the EBITDA guidance for 2009 of $110 million that you reiterated twice this year and I believe that you also indicated that in your filings that you were looking for, I believe, $120 million in 2010, any update to that figure?

Paul Carrico

I think at this time we would not update that for next year. Still looking to see how things develop as we move into the November, December timeframe and start the beginning of next year. There's certainly been mixed signals out there in the market in various different areas about what will happen. I think everyone is very cautious about the end of the year, but then a lot of people have mixed views about going into next year.

So, we need a little bit more time working through this current period to get a better picture of next year.

Operator

Your next question comes from Roger Spitz with Bank of America.

Roger Spitz - Bank of America-Merrill Lynch

Industry consultants have suggested that PVC demand fell fairly strongly in the fourth week of September and October. It was looking weak to them as well. Can you say what you've seen over that time period?

 

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