Gypsum industry news

US: Eagle Materials’ revenue from its gypsum wallboard business fell by 11% year-on-year to US$127m in the first quarter of its financial year to 30 June 2019 from US$142m in the same period in 2018. Its earnings dropped by 25% to US$37.9m from US$50.5m. Wallboard sales volumes decreased by 7% to 61Mm² from 66Mm². It attributed the loss of revenue on lower volumes and poor pricing although it said that buying activity around a price increase in July 2019 suggested that the market was ‘healthy.’

France: Saint-Gobain’s sales rose by 4.3% year-on-year to Euro21.7bn in the first half of 2019 from Euro20.8bn in the same period in 2018. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) grew by 8.4% to Euro2.42bn from Euro2.23bn. Growth was reported for its gypsum business in all territories apart from North America. Particular growth was noted in its Asia-Pacific region.

Switzerland: Sika’s net sales grew by 7.6% year-on-year to Euro3.38bn in the first half of 2019 from Euro3.14bn in the same period in 2018. Its operating earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 14.5% to Euro565m from Euro493m. The building chemicals producer noted that its takeover in the reporting period of Parex, a globally leading producer of facade mortar, technical mortar, tile adhesives, and waterproofing systems, was the largest acquisition in its history.

US: Eagle Materials’ gypsum wallboard and paperboard sales grew by 5% year-on-year to US$634m in the year to 31 March 2019 from US$603m in the same period in 2017. Its gypsum wallboard sales volumes increased by 4% to 246Mm2 from 237Mm². Operating earnings from this division rose by 13% to US$216m from US$191m. Sales were driven by higher sales volumes and prices. Overall, the company’s sales and earnings grew slightly.

France: Saint-Gobain’s sales rose by 6% year-on-year to Euro10.4bn in the first quarter of 2019 from Euro9.76bn in the same period in 2018. Sales for most of the group’s divisions rose with the exception of Asia-Pacific. Gypsum business growth was reported in Northern Europe, South Europe – Middle East & Africa and Asia Pacific. Like-for-like sale in Asia Pacific were supported by the start-up of a fifth float line in India. Insulation business growth was also noted in France.

Belgium: Etex’s Building Performance division’s sales rose by 6.9% year-on-year to Euro1.65bn in 2018. It attributed this growth to the good performance of gypsum wallboard sales in most territories and especially in France, the UK and Central & Eastern Europe. However, challenging market conditions and competition were reported in Germany. Overall, the group’s revenue rose by 4.1% to Euro2.9bn from Euro2.78bn. Its earnings before interest, taxation, depreciation and amortisation (EBTIDA) fell by 9.5% to Euro391m from Euro432m. Issues with negative exchange rate effects and hyperinflation in Argentina were reported.

Germany: Wacker’s silicones division has driven its sales growth in 2018 despite a contraction in the polysilicon market. Its group sales rose by 1% year-on-year to Euro4.98bn in 2018 from Euro4.92bn in 2017. Its earnings before interest, taxes, depreciation and amortisation (EBITDA) fell by 8% to Euro930m from Euro1.01bn. It blamed this on issues at its Charleston plant in the US, an on-going insurance claim and higher raw material and energy costs.

“From today’s perspective, 2019 is not going to be an easy year,” said chief executive officer Rudolf Staudigl. “For our chemical divisions, we are confident that our excellent products will keep us on our growth path. On the other hand, solar-grade polysilicon overcapacities in China are slowing the earnings trend at our polysilicon business – and thus at the group – despite our leading market and quality position.” He added that a ‘particular’ challenge facing energy-intensive companies like Wacker was the increase in electricity prices in Germany.

Saudi Arabia: National Gypsum Company ‘s sales rose by 40% year-on-year to US$16.3m in 2018 from US$11.7m in 2017. Its net profit after Zakat and tax was US$3.01m following a loss of US$4.38m in 2017. The company attributed its turnabout to increased sales, external investment and changes in its accounting.

Australia: USG Boral’s earnings fell in the first half of its financial year due to a slowdown in South Korea. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) dropped by 16% year-on-year to US$89.3m in the half-year to 31 December 2018 from US$107m in the same period in 2017. Its revenue grew by 2% to US$594m from US$583m. This was attributed to sales volumes growth in Australia, Indonesia, Vietnam and India.

France: Saint-Gobain’s Interior Solutions division’s sales revenue grew by 4% year-on-year to Euro7.17bn in 2018 from Euro6.88bn in 2017. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 11% to Euro1.06bn from Euro953m. Overall, the group’s sales and earnings rose in 2018, although at slower rates.

"As expected, our results for the second half show a significant improvement, benefiting from broadly supportive markets, a strong pricing dynamic and the settlement of industrial issues that had weighed on the group's profitability in the first half,” said Pierre-André de Chalendar, chairman and chief executive officer of Saint-Gobain. He added that the group has a program underway to divest sales of over Euro3bn by the end of 2019.