Gypsum industry news

Switzerland: Sika’s net sales grew by 13.4% year-on-year to Euro6.23bn in 2018 from Euro5.5bn in 2017. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 7.6% to Euro1.01bn from Euro940m. The building chemicals producer reported growth in all regions, with highlights in Eastern Europe, the US, India, Indonesia and China.

US: USG’s net sales grew by 4% year-on-year to US$3.34bn in 2018 from US$3.20bn in 2017. Its operating profit fell by 36% to US$227m from US$353m. Sales from its wallboard and surfaces division were stable at US$1.93bn but its operating profit fell by 19% to US$248m. The building materials company said that its operating profit in the fourth quarter was negatively affected due to lower sales caused by the timing of when it announced wallboard price increases. USG’s takeover by Germany’s Knauf is expected to close in early 2019.

Australia: Boral has warned that its USG Boral joint venture has suffered from market decline and competition in South Korea. It operations in the country were also negatively affected by Typhoon Soulik in August 2018. However, the company reported ‘strong’ results in Australia. Overall, Boral expects that USG Boral will contribute less earnings to the company in the first half of its financial year to the end of 2018.

US: Eagle Materials’ revenue rose slightly to US$1.11bn in the nine months to 31 December 2018. Revenue from its Light Materials business, including gypsum wallboard, grew by 3% to US$479m from US$467m. Gypsum wallboard production dropped slightly to 185Mm2. Operating earnings increased by 13% to US$166m from US$146m.

“Adjusting for the effects of unusual weather trends during 2018 and a shift in the timing of wallboard price increases and related buying activity, we estimate that the overall market demand for our building materials, notably cement and wallboard, remained in positive territory in 2018, with growth rates in the low single digits,” said chief executive officer (CEO) Dave Powers.

Switzerland: Sika’s sales grew by 13.7% year-on-year to Euro6.3bn in 2018 in local currencies. It reported above-average growth rates in Eastern Europe, Africa, the Middle East, US, Indonesia, India, China, and in its Global Business segment.

“With 11 new factories, an additional national subsidiary and four acquisitions, we have invested a great deal in our supply chain in the past year so that we can benefit from the growth in global construction markets and further expand our market position,” said chief executive officer (CEO) Paul Schuler.

US: GMS’s half-year wallboard sales have risen due to its acquisition of Canada’s Titan on 1 June 2018 and rising prices. Its wallboard sales rose by 14% year-on-year to US$652m in the half year to 31 October 2018, from US$573m in the same period in 2017. Overall, the wallboard distributor’s net sales increased by 25% to US$1.61bn.

US: Continental Building Products’ net sales increased by 8% year-on-year to US$387m in the first nine months of 2018 from US$358m in the same period in 2017. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 13% to US$111m from US$98.8m. Its wallboard sales volumes grew by 7% to 67Mm² from 62.6Mm². it attributed the growth in sales volumes to ‘strong’ demand in its markets.

US: Eagle Materials’ sales revenue from gypsum wallboard rose in the first half of its financial year to 30 September 2018 due to higher prices. Its revenue from wallboard grew by 9% year-on-year to US$272m from US$250m. Its wallboard sales volumes increased by 3% to 124Mm² from 121Mm². The building materials producer said that Hurricane Florence had disrupted its southeastern markets reducing salese in the second quarter. Overall, the company’s sales across all businesses rose.

US: USG’s operating profit fell by 30% year-on-year to US$190m in the first nine months of 2018 from US$270m in the same period in 2017. The building materials company blamed this on rising costs in the third quarter, arising from transport costs and non-production costs linked to its Customer-First strategy. Despite this, net sales rose by 6% to US$2.52bn from US$2.37bn.

The company is currently being acquired by Germany’s Knauf. The takeover is expected to complete in early 2019. In its third quarter financial report USG said that Boral had started proceedings in late August 2018 to determine the value of the USG Boral joint venture. This process could lead to Boral exercising its right to purchase USG’s 50% interest in USG Boral.

China: Beijing New Building Materials’ (BNBM) operating revenue rose by 17% year-on-year to US$1.37bn in the first nine months of 2018. Its net profit grew by 31% to US$293m. However, both revenue and profit fell in the third quarter of 2018.