Gypsum industry news

US: USG Corporation has reported fourth quarter 2013 net sales of US$915m, up by 12% from fourth quarter 2012 net sales of US$815m. USG's fourth quarter 2013 operating profit was US$60m compared to an US$8m operating loss in the fourth quarter of 2012. USG's fourth quarter 2013 net loss was US$3m, compared to a US$13m net loss in the same period of 2012.

USG's adjusted net income was US$22m in the fourth quarter of 2013 compared to an adjusted net loss of US$52m in the fourth quarter of 2012. The adjusted net loss in the fourth quarter of 2013 excluded, among other items, a US$16m pension settlement charge related to a lump-sum payout to terminated employees that lowered the pension obligation by approximately US$80m. The adjusted net loss in the fourth quarter of 2012 excluded, among other items, a US$55m gain from the sale of the corporation's European operations.

"We're pleased to have delivered a fourth consecutive quarter of positive operating results with improved performances in all major businesses," said James S Metcalf, chairman, president and CEO. "Our plan to win is working and we expect to improve upon our results as we capitalise on the increasing opportunity in our end markets."

USG recorded full year 2013 net sales of US$3.6bn, an operating profit of US$258m and a net income of US$47m, with an adjusted net income of US$73m. For the full year of 2012, net sales were US$3.2bn, operating profit was US$73m and net loss was US$126m, with an adjusted net loss of US$124m.

"2013 was a foundational year for USG, however our work is not done," Metcalf said. "We remain committed to keeping our breakeven low and delivering our balance sheet, while seeking organic growth opportunities as we build the USG of the future."

Australia: Boral has announced that it expects net profit after tax (NPAT) before significant items for the first half of financial 2014 to be US$90m, subject to finalisation of an audit review.

The result is underpinned by favourable weather conditions in Australia, strong volumes from major projects, a significant turnaround in the performance of the Building Products division and benefits from prior year restructuring activities. For 2014, the company expects a significant skew of earnings to the first half of the year compared to the second half of the year, due to lower contributions from major projects and reduced contributions from Boral Gypsum. The latter is expected following the move from a 100% owned division to a 50% joint venture, upon completion of the transaction with USG during the second half of 2014.

Belgium: Etex Group has reported that its net profit fell by 63% year-on-year to Euro69m for the fist six months of 2013 from Euro89m for the same period in 2012. Sales fell by 6.5% to Euro1.48bn from Euro1.59bn. Etex's earnings before interest, taxes, depreciation and amortisation (EBITDA) fell by 13.9% to Euro190m from Euro221m. The building materials group blamed a harsh winter in Europe and weak market conditions.

"Bad winter conditions in Europe affected our half year results, particularly in Eastern Europe. Etex continues its debt reduction programme by selling non-used assets and divesting non-core businesses. At the same time, we are investing in promising growth markets," said CEO of Etex, Fons Peeters.

In early August 2013 Etex announced that it was investing Euro25m in Siniat's French polystyrene factories to strengthen its market position in polystyrene backed plasterboards. It also expected that its CO₂ emission would drop due to a shorter distance between production sites and the market.

For the remainder of 2013 Etex expects 'slightly' better results than in 2012 due to its growth in the dry construction market.

Vietnam: Gypsum and Cement JSC posted a net profit of US$173,900 in the first half of 2013, versus US$184,834 a year earlier. The company generated revenue of US$13.3m in the period, versus US$12.3m over the same period of 2012.

In the second-quarter of 2013, the company posted a US$112,800 net profit on US$7.5m revenue, compared to US$137,440 and US$7.3m a year before.

Australia: Boral's Asian profit for its gypsum division has fallen by 10% for its 2012 – 2013 financial year, which ended on 30 June 2013.

The Australian building materials manufacturer calculated that, in the first full year following its acquisition of all of Boral Gypsum Asia, its earnings before interest and tax (EBIT) fell to US$51.2m from US$56.6m on a like-for-like basis. It blamed the decline on challenging conditions in South Korea and China, lower demand in Vietnam, plant ramp-off costs and the effects of lower capacity utilisation rates. However, on the same basis revenue for the subsidiary rose by 4% to US$502m in the period.

Boral's Australian gypsum division, Plasterboard Australia, saw its revenue fall by 5% to US$301m from US$316m. EBIT remained flat at US$22.5m.

"Boral Gypsum delivered softer underlying earnings in FY2013 due to cyclical challenges in some Asian markets and the cost impacts of investment ramp-ups in China and Indonesia. The business remains extremely well positioned for future earnings growth in Asia and Australia and has invested in three additional board lines that will increase net capacity in Asia by 16%," said Boral's chief executive officer and managing director, Mike Kane. For its gypsum businesses, Boral reported that capacity expansion projects at Chongqing, China (15Mm²/yr) and Ho Chi Minh City ,Vietnam (30Mm²/yr) have been delayed for completion in the second half of 2013 and early 2014 respectively.

Overall, Boral made a loss of US$192m for its 2012 – 2013 financial year. In the previous year it made a profit of US$160m. Its sales revenue rose by 5% to US$4.71bn from US$4.26bn in the prior year. Its profit after tax but before significant items rose by 3.2% to US$94.3m from US$91.4m. EBIT before significant items rose by 14% to US$206m from US$180m.

In the 2013 – 2014 financial year the division's performance is expected to remain strong, despite lower property sales and reduced major project work. However, overall the results in 2013 – 2014 are not expected to exceed those in 2012 – 2013.

US: Eagle Materials has reported financial results for the first quarter of the 2014 fiscal year, which ended on 30 June 2013. It saw its revenue for the quarter increase to US$227m, an increase of 47% year-on-year and earnings before interest and income taxes were up by 109% to US$49.5m. Its net earnings were US$30.1m, a 115% rise from US$14m in the first quarter of the prior fiscal year.

Eagle's Gypsum Wallboard and Paperboard businesses reported first quarter operating earnings of US$35.3m, up 83% from the same quarter of the prior fiscal year. Improved gypsum wallboard net sales prices were the primary driver of the quarterly earnings increase. Additional contributions came from improved sales volumes in both wallboard and paperboard.

Gypsum Wallboard and Paperboard revenues for the first quarter totalled US$114.9m, a 28% increase from the same quarter in the 2013 fiscal year. The revenue increase reflects higher average wallboard net sales prices and higher gypsum wallboard and paperboard sales volumes. The average gypsum wallboard net sales price this quarter was US$1.57 per square meter, 23% greater than the same quarter a year ago.

Wallboard sales volume for the quarter of 532 million square feet represented a 16% increase from the same quarter of the 2012 - 2013 fiscal year.

US: USG Corporation (USG) has reported that its net sales rose by 15% year-on-year to US$916m in the second quarter of 2013 from US$798m in the same period in 2012. Net income rose to US$25m in the quarter compared to a loss of US$57m in 2012.

"We are pleased to generate net income for the second consecutive quarter," said James S Metcalf, Chairman, President and CEO. "Results in all major business units have improved from one year ago, including L&W Supply, which achieved an operating profit for the first time since 2008." Metcalf attributed the results to the success of the company's 'Plan to Win' business strategy.

Business unit highlights from the second quarter of 2013 included a 12% rise in wallboard shipments to 120MM2 from 107MM2.

US: Eagle Materials' revenue has increased by 30% to US$643m for its financial year to 31 March 2013, from US$495m in the same period of 2011 – 2012. The US-based building materials provider saw fourth quarter results improve across all business lines reflecting an improving construction market in the US.

Eagle's gross profit for the year more than doubled to US$103m in 2013 – 2012 from US$40.5m in 2012 – 2011. Revenues for its gypsum wallboard business rose by 41% to US$307m from US$218m. Sales volumes of wallboard rose by 17% to 177MM2 from 152MM2. Eagle attributed the increase in operating earnings to higher net wallboard sales prices and sales volumes.

France: Saint-Gobain has reported that its sales fell by 4.8% to Euro9.67bn for the first quarter of 2013, down from Euro10.2bn in the same period in 2012. The France-based building materials multinational blamed the decline on bad weather, fewer working days in the period compared to the previous year and the continued economic slowdown in Europe.

"We anticipate a gradual recovery in the group's trading over the next few quarters and confirm our target of a recovery in operating income in the second half after having bottomed out between mid-2012 and mid-2013," said chairman and chief executive, Pierre-André de Chalendar.

Sant-Gobain's Construction Products Interior Solutions sector, which includes gypsum wallboard manufacturing, reported a 4.4% drop in like-for-like sales in the first quarter of 2013, mainly due to a drop in volumes in western Europe. However, Asia and emerging countries reported a 8.8% rise in sales.

By region across all business sectors, in France Sant-Gobain reported a 8.8% fall in sales to Euro2.80bn in the first quarter of 2013 from Euro2.90bn in the same quarter in 2012. Other western European countries saw a 9.5% fall in sales to Euro3.80bn from Euro4.18bn. North America reported a rise of 3.1% to Euro1.56bn from Euro1.52bn. Emerging countries, Asia and Pacific saw a 1.5% rise to Euro2.03bn from Euro1.94bn. In this territory Sant-Gobain singled out 5.4% sales growth in Latin America for offsetting declines in China and South Korea.

US: USG Corporation (USGC) reported first quarter 2013 net sales of US$814m on 24 April 2013, a rise of 4% compared to the first quarter of 2012, when it had net sales of US$783m. USG's first quarter 2013 operating profit was US$49m compared to a US$24m a year earlier. Its first quarter 2013 net income was US$2m, compared to a US$27m net loss in the first quarter 
of 2012.

"We are pleased to report our first quarter of net income in more than five years," said James S Metcalf, Chairman, President and CEO. "All segments showed improved results in the period and our commitment to innovation and lowering our break-even are evident in our results."

The corporation's adjusted net income was US$1m in the first quarter of 2013, which compares to an adjusted net loss of US$27m in the first quarter of 2012. The adjusted net income for the first quarter of 2013 excludes US$2m of restructuring charges and a US$3m benefit from a change in tax law. The adjusted net income for the first quarter of 2012 excludes US$2m of restructuring charges and US$2m of income from discontinued operations.

"Achieving positive net income in the first quarter is an important milestone as we emerge from the most significant downturn in our company's history, but there is more work to be done," Metcalf said. "We will continue to execute 'Our Plan to Win' as the recovery continues in our core markets."