Gypsum industry news

US: Eagle Materials has reported financial results for the second quarter of its 2020 fiscal year, a period that ended on 30 September 2019. Its overall revenue was US$414.5m for the period, a 9% year-on-year improvement.

Gypsum wallboard and paperboard revenue declined slightly from the prior year, as improved sales volume was offset by lower pricing. Gypsum Wallboard sales volume reached 63.3Mm3 (681Mft2), a rise of around 8% year-on-year, while the average Gypsum Wallboard net sales price declined by 10% to US$13.78Mm2 (US$148.16/Mft2).
Paperboard sales volume for the quarter also increased, up by 9% to a record 86,000t. The average paperboard net sales price was US$475.98/t, down by 6% from the prior year, consistent with the pricing provisions in our long-term sales agreements.
Operating earnings were US$48.6m in the sector, a decline of 11%, reflecting improved wallboard and paperboard sales volume offset by lower net sales prices. Operating costs during the quarter declined primarily due to lower recycled fibre costs.

India: US-based moisture measurement specialist MoistTech has deployed a manager and technical staff to India to liaise directly with its customers there. The new branch will take up all customer support functions previously enacted by Earthtekniks.

Australia: US-based private equity company Lone Star Funds is considering acquiring Boral, according to the Australian newspaper. Lone Star Funds purchased building materials manufacturer Forterra from Heidelberg Cement. Boral later formed a joint venture with Forterra Brick in the US in 2016. In a separate deal Lone Star Funds later purchased German building materials producer Xella. Despite growing revenue from continuing operations, Boral’s net profit after tax fell by 7% year-on-year to US$301m in the year to 30 June 2019.

US: The American Coal Ash Association (ACAA) has criticised a proposed revision of coal ash regulations by the Environmental Protection Agency because it will restrict the recycling of coal ash.

"EPA's proposals related to the definition of coal ash beneficial use are the opposite of a regulatory roll-back," said Thomas H Adams, ACAA Executive Director ahead of a hearing with the EPA. "Without any damage cases or scientific analysis to justify its actions, the agency is seeking to impose burdensome new restrictions that will cause millions more tons of material to be disposed rather than be used in ways that safely conserve natural resources and energy."

Adams and the ACCA argue that previous EPA rules concluded that beneficial use of coal ash should be exempt from regulation and encouraged to contribute to sustainability. However, the ACCA has taken exception with a 2015 definition of beneficial use, which was intended to prevent ‘disposal activities masquerading as beneficial use.’ By expanding the scope of this definition the ACCA says that more coal ash will be landfilled instead of being recycled.

Coal is the fuel source for approximately one-third of electricity generation in the US and produces large volumes of solid coal combustion products - primarily ash and synthetic gypsum from emissions control devices. This family of diverse products is referred to as coal combustion residuals in a disposal setting and is often generically referred to as ‘coal ash.’

According to ACAA's most recent ‘Production and Use Survey,’ 64.4% of the coal ash produced during 2017 was recycled. By volume, 71.8Mt of coal combustion products were beneficially used in 2017 out of 111Mt that were produced. Coal ash production volume increased by 4% year-on-year from 2016.

US: Munson has launched a ribbon blender for the homogenisation of dry bulk solids, including gypsum plaster. The unit, which can also blend solids with liquids from its spray lines to pastes or slurries, has a volume of 2.4m³. The company reports that its novel bag dump, which draws dust into filter cartridges by intermittent blasts from a number of nozzles, will improve worker safety and plant hygiene.

US: National Gypsum’s Shippingport wallboard plant in Pennsylvania and its Anniston paper plant in Alabama have both won the Lloyd H Yeager Award for working 1 million hours or more worked without a lost time accident (LTA). The Shippingport plant reached 2 million hours without a LTA. The award is organised by the Gypsum Association (GA) and 13 plants have been recognised on this occasion. The Anniston paper plant makes face paper for National Gypsum’s wallboard products including the distinctive purple paper used in the company’s Purple product line.

“Under Lloyd H Yeager’s leadership, the GA ran a robust safety training program for the gypsum industry and was very successful in emphasising the importance of workplace safety among GA member companies,” said Stephen H Meima, executive director of the GA.

US: Gypsum Resources has filed for Chapter 11 bankruptcy at the Nevada US Bankruptcy Court. It is aiming to reorganise the business amid financial and operational difficulties, according to the Las Vegas Reiew Journal newspaper. The company operates a gypum mine at Blue Diamond Hill but it has been trying to develop a residential housing project at the site for over a decade. The development has been opposed by local environmentalists.

Company president James Rhodes blamed the bankrupty decision on ambitious growth plans, disrupted mining operations due to equipment failure and bad weather. He was optimistic that market demand for gypsum is steady and that the company will report positive net income later in 2019. The mine supplies gypsum to the wallboard, cement and agricultural industries.

US: Continental Building Products says it has been confronting a ‘sluggish’ new home construction market in the second quarter of 2019. Jay Bachmann, president and chief executive officer (CEO), said that the company was expecting the market to recover in the second half of the year and its improvement programme to reduce costs. Its net sales fell by 4% year-on-year to US$246m in the first half of 2019 from US$256m in the same period in 2018. Its net income dropped by 34% to US$28.8m from US$35.5m. Its gypsum wallboard volumes fell slightly by to 123Mm².

The wallboard producer also said that the shutdown of its Buchanan plant in New York due to mechanical failure might cause a boost operating income and earnings before interest, taxation, depreciation and amortisation (EBITDA) of up to US$2m once an insurance claim is settled. The plant was shut from January 2019 to 15 March 2019. The company increased production at its plants in Silver Grove, Kentucky and Palatka, Florida to offset a portion of the lost production from the Buchanan plant.

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.’

US: China National Building Material Company (CNBM) has proposed paying US$248m in one of its on-going legal cases related to alleged defective gypsum wallboard sold by Taishan Gypsum. This latest settlement agreement covers plaintiffs not previously covered by the Amorin Case, those in the Brooke Case and all other property owners with Chinese gypsum board alleged to be attributed to Taishan and connected partners. The settlement is dependent on all parties signing the agreement.