Gypsum industry news
Australia: USG Boral’s earnings have been hit by competition in Indonesia, Thailand and Vietnam, higher input costs including paper and a one-off cost. Earnings before interest, taxation, depreciation and amortisation (EBTIDA) were negatively affected by a one-off cost of US$8m associated with a three-month closure of the port of Thevenard in South Australia and an unfavourable operational reserve adjustment in India. Its EBITDA fell by 6% year-on-year to US$196m in the financial year to 30 June 2018 from US$207m in the same period in 2017.
However, despite this its sales revenue rose by 7% to US$1.15bn from US$1.08bn. This was attributed to continued adoption of its Sheetrock products and technical board in Australia, Korea, China and Thailand. Overall board volumes increased by 3% year-on-year and technical board, which represents 20% of volumes, grew by 20%. Gypsum wallboard volumes grew in Australia and China, and ‘strong’ price gains were achieved in South Korea and China.
“This long-term growth business has delivered impressive and uninterrupted year on year growth since the formation of the joint-venture in 2014, with FY2018 being a consolidation year. Australia, Korea and China delivered strong top line growth in FY2018, offsetting pressures in countries such as Indonesia, Thailand and Vietnam and some unexpected one-off cost impacts,” said chief executive officer and managing director Mike Kane. He added that the company is currently considering an expanded joint-venture with Germany’s Knauf in relation to its proposed acquisition of USG. However, Boral is also considering a return to 100% Boral ownership.
Martin Brydon appointed director of Fletcher Building 30 August 2018
New Zealand: Fletcher Building has appointed Martin Brydon as a non-executive director with effect from 1 September 2018. Brydon, who is currently the chief executive officer (CEO) and managing director of Adelaide Brighton, is scheduled to retire from the Australian company later in 2018. Chairman Ralph Norris said that Fletcher Building is focusing on the New Zealand and Australian markets and that an Australian director who will help this strategy.
Brydon has worked for over 40 years in the Australian building products sector. He started his career as an indentured engineering cadet with BHP, before progressing to general management roles with Cockburn Cement, where he then served as CEO from 1998 - 1999. Brydon joined Adelaide Brighton in 1999 and held a number of general management roles before his appointment as CEO and managing director in 2014.