Gypsum industry news

US: Eagle Materials has reported a revenue of US$124m for the third quarter of its 2012 fiscal year which ended on 31 December 2011. This represents a 19% rise compared to the same period of the fiscal 2011 year. However, earnings before interest and taxes (EBIT) fell to US$ 6.89m, a fall of 40% from the same period in 2011.

In its third quarter report Eagle Materials singled out its low-cost operations for performing well during the challenging environment for US construction activity. Gross profit was reported as US$12m, a rise of 59% compared to the same period in 2011. Segment operating earnings increased by 30% reflecting improved sales volumes in the company's wallboard, paperboard and cement businesses and higher wallboard and paperboard net sales prices as compared to the prior year.

For its Gypsum Wallboard and Paperboard sectors Eagle Materials reported third quarter operating earnings of US$5.4m compared to an operating loss of US$0.4m in the same quarter of 2011. Gypsum Wallboard and Paperboard revenues for the third quarter reached US$73.5m, a 24% increase from the same quarter of the 2011 fiscal year. Higher wallboard and paperboard net sales prices combined with improved paperboard sales volumes were the primary drivers of the quarterly earnings and revenues increase.

US: Temple Inland, soon to be owned by International Paper, has released fiscal results for the third quarter of 2011. These show that gypsum wallboard volumes and revenues were down compared to the second quarter of 2011. Revenues were down from USD37m in the second quarter to USD34m and output volumes declined from 299MMSF to 270MMSF. Gross pricing increased by approximately USD2/MMSF between the two quarters.

US: USG has reported a deepening net loss of USD115m for the quarter ending 30 September 2011, compared to a loss of USD100m for the same period in 2010. Revenue rose 4.4% to USD792m, from USD758m in 2010.

A weak economy has been blamed for low levels of demand for the company's products. "Many of our key markets continue to experience recessionary levels of demand that are near record lows," said President and CEO James S. Metcalf.

USG's operating loss for gypsum in North America expanded to USD70m, from USD43m in 2010. It also had a USD17m operating loss for building products, compared to a USD24m loss in 2010. Its Worldwide Ceilings unit had a USD25m operating profit.