US: USG's profit has been reduced due to rising commodity costs in both its gypsum and ceiling businesses. Its operating profit fell by 22% year-on-year to US$91m in the first quarter of 2017 from US$116m in the same period in 2016. Its net sales rose by 2.7% to US$767m from US$747m, roughly in line with its sales revenue growth in 2016 as a whole. The group reported that US gypsum wallboard volumes decreased by 4% in the quarter. Domestic wallboard manufacturing costs increased by US$16m due to rising waste paper and synthetic gypsum input costs.
"We had sound operational performance in the first quarter and we are seeing solid demand for our products," said Jennifer F Scanlon, president and chief executive officer. "I am encouraged about our prospects for the balance of the year, despite the uptick we are seeing in commodity costs."
