Gypsum industry news

US: Eagle Materials' sales revenue rose by 6% year-on-year to US$1.21bn in its financial year to 31 March 2017 from US$1.14bn in the same period in 2016. The building materials producer completed its acquisition of Cemex's Fairborn cement plant in Ohio with associated assets in February 2017 and this contributed to its cash flow in the period. The group's gypsum wallboard sales volumes rose by 4% to 231m³ from 222m³ despite a fall in volumes in the fourth quarter.

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."

France: Saint-Gobain has reported sales growth in all main territories in the first quarter of 2017, led by Asia and its emerging markets. Net sales for its Interior Solutions division rose by 6.2% year-on-year to Euro1.71bn in the first quarter of 2017 from Euro1.61bn in the same period of 2016. This was supported by rising prices in a 'strong cost inflation environment.' Overall the group's net sales rose by 7.6% to Euro9.14bn. Notable geographical trends included a recovery in France and a continued poor market in Brazil.

"The first quarter saw robust trading. The good momentum in sales volumes observed in 2016 continued at the start of the year in all business sectors and regions. France benefited from the recovery in new-build activity, while other Western European countries delivered further growth. North America and emerging markets had a good start to the year. The group continued to pursue its priorities, focusing particularly on sales prices amid a more inflationary backdrop," said Pierre-André de Chalendar, chairman and chief executive officer of Saint-Gobain.

Belgium: Revenue from Etex's Building Performance division rose slightly to Euro1.44bn in 2016 from Euro1.43bn in 2015. The division produces gypsum wallboard as well as fibre cement boards and other dry construction materials. The group said that it had posted sound results in 2016, particularly in Europe, its largest market, where it performed within expectations.

However, the company's overall revenue fell by 5.6% year-on-year to Euro2.88bn from Euro3.05bn. It blamed this on the sale of its ceramics floor and wall tiles business in Latin America and unfavourable exchange rates. On a like-for-like basis it said that its revenue rose by 1.5% in the period. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 10.4% to Euro404m from Euro366m.

China: China National Building Material Company's (CNDM) gypsum wallboard sales volumes rose by 13.1% year-on-year to 1.64Bnm² in 2016. Sales revenue from the group's lightweight building materials section, that produces wallboard, rose by 8% to US$1.12bn in 2016 from US$1.03bn in 2015. The building materials producer said that improved marketing had helped it maintain its lead as the largest wallboard producer in China. The group runs BNBM and Taishan Gypsum.

France: Saint-Gobain's Interior Solutions division's sales rose by 1.5% year-on-year to Euro6.58bn in 2016 from Euro6.49bn in 2015. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 9.6% to Euro982m from Euro896m. It attributed the rise in sales to good growth in the first half of the year with growth in most regions. It also noted that productivity gains and a fall in costs, particularly energy, drove a 'sharp' improvement in its operating margin.

"Saint-Gobain showed strong progress in its 2016 results. We saw the benefits of our optimisation efforts and of our development in emerging markets, in a more supportive economic environment than 2015. As expected, France stabilised over the year as new-build activities recovered. All other regions enjoyed good momentum. The group also benefited from its focus on pricing against a backdrop of lower energy and raw material costs," said Pierre-André de Chalendar, Chairman and Chief Executive Officer of Saint-Gobain.

Switzerland: Sika's net sales rose by 4.7% year-on-year to Euro5.40bn in 2016 from Euro5.16bn in 2015. Its net profit rose by 21.8% to Euro533m from Euro437m. the company attributed this to growth in all regions.

"We continued our growth strategy with great success in the 2016 business year, once again increasing both sales and earnings. Operating profit, net profit and operating free cash flow reached new records. By opening nine new factories, establishing four more national subsidiaries and acquiring four companies, we have laid the foundations for ongoing future growth," said chief executive officer Jan Jenisch.

Australia: Boral's revenue from its gypsum wallboard join venture, USG Boral, has risen by 2% year-on-year to US$566m in the first half of its financial year, which ended on 31 December 2016, from US$552m in the same period in 2015. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 18% to US$116m from US$98.5m. It attributed the sales growth to growth in its Sheetrock plasterboard product. The on-going rollout of Sheetrock is scheduled to continue until the end of 2017. Regionally, sales growth in South Korea, Australia and Thailand offset a declining market in China.

The building materials company added that its joint venture had started building a new warehouse at its USG Boral's Dangjin facility in South Korea in the reporting period. The upgrade at the site is intended to add incremental capacity and support the longer-term addition of at least 30Mm²/yr of plasterboard production capacity at the site, which has existing capacity to produce around 70Mm²/yr. The investment will be self-funded through the joint venture.

Overall, Boral's sales revenue fell by 5% to US$1.6bn from US$1.68bn. However, its profit after tax rose by 9% to US$114m from US$105m. It attributed this to a 'solid' performance in Australia combined with good earnings from Boral USA and USG Boral.

US: USG's net sales have risen by 3.5% year-on-year to US$3.02bn in 2016 from US$2.91bn in the same period in 2015. Its net income fell by nearly half to US$510m from US$991m. Net sales of gypsum rose by 4.6% to US$2.14bn from US$2.04bn.

"We are in a stronger financial position than we have been in for many years," said Jennifer F Scanlon, president and chief executive officer (CEO) of USG. "In 2016 we expanded adjusted operating margins in our Gypsum, Ceilings, and USG Boral businesses. We finished the year on a high note by paying off US$900m of debt."