US: USG has blamed falling sales for its wallboard business on prices rises and inclement weather. The net sales for its wallboard and surfaces business fell by 6% year-on-year to US$441m in the first quarter of 2018 from US$469m in the same period in 2017. Its operating profit fell by 38% to US$49m from US$79m. Overall the company’s sales rose by 2.5% to US$786m.
“Our wallboard volumes were impacted by the timing of our US wallboard price increase and the frequent storms that affected many regions of the country. However, we are encouraged to see shipping volumes increase over the last six weeks, as our Sheetrock brand and industry leading technology continue to be preferred by contractors,” said Jennifer Scanlon, president and chief executive officer of USG.
The company said that its wallboard price increased by 9% from the fourth quarter of 2017 and 1% from the first quarter of 2017, due to a price increase in January 2018. It added that wallboard costs were US$14m higher in the quarter year-on-year due to retained staff levels, incurred costs to start-up a lower-cost line and input cost inflation.
