Gypsum industry news

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: The Gypsum Association has revised its GA-216 Application and Finishing of Gypsum Panel Products technical document. It has been revised in 2018 to fit a three year cycle to coincide with the 2021 code revision cycle and to better align with the Association’s other code-referenced documents, namely GA-600 Fire Resistance and Sound Control Design Manual and GA-253 Application of Gypsum Sheathing. GA-216 is referenced in the International Building Code (and other I-Codes) as well as NFPA 5000 as a standard for the application and installation of gypsum panels.

The 2018 specification provides appropriate installation methods for the various types of gypsum panels. New to the 2018 specification is clarification of language on steel studs and abuse-resistant and impact resistance panel products and updated criteria for panel installation over concrete. Direct adhesion to concrete is no longer acceptable; panels must be installed on framing. Also, GA-223 Gypsum Panel Products, Types, Uses, Sizes, and Standards has been added to the appendix as a reference to ASTM standards and Gypsum Association publications that provide additional information and specifications.

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.

US: USG shareholders have approved an agreement and plan to accept Knauf’s takeover of the company. Approximately 99% of all votes cast voted in favour of the adoption of the agreement, representing approximately 88% of all outstanding shares as of 21 August 2018. Adoption of the merger agreement by USG stockholders is a condition to the closing of the merger. The merger is subject to certain other customary closing conditions, including receipt of regulatory approvals. The company currently expects the deal to close in early 2019.

US: Saint-Gobain North America has appointed Robert Panaro as its chief financial officer (CFO) and Senior Vice President of Finance. He previously worked as Vice President and CFO of CertainTeed, Saint-Gobain’s largest subsidiary in North America, and brings more than 25 years of experience to his new role. In his current role, Panaro will be responsible for overseeing mergers and acquisitions, capital investments and financial services in North America. He assumed the position earlier this year, succeeding Philippe Nouailhac as Senior Vice President of Finance and CFO for Saint-Gobain North America.

Panaro graduated from Boston College and holds a Bachelor of Science in management with a concentration in accounting and finance. He has served on the board of directors for the Grid Company, a joint venture between CertainTeed and Bailey Metals, Merit Abrasives and EcoTarium, a Natural Science Museum in Worcester, Massachusetts.

US/China: The Office of the US Trade Representative has started implementing a 10% tariff on mineral and other products from China, including gypsum products, following a consultation period. Mineral products affected by the proposed tariffs of interest to the gypsum wallboard industry include gypsum, anhydrite and plaster products made from calcined gypsum or calcium sulphate. Lime, cements and additives for cements, mortars and concretes are also affected.

The latest tariff list follows an earlier decision by the US government to tax imports from China worth US$34bn that came into force in early July 2018.

US: Data from the US Geological Survey (USGS) shows that consumption of calcined gypsum rose by 2.95% year-on-year to 8.38Mt in the first half of 2018 from 8.14Mt in the same period in 2017. Production rose by 3.05% to 8.44Mt from 8.19Mt. However, consumption of all gypsum fell by 1.47% to 20.1Mt from 20.1Mt with a decrease in mined gypsum and an increase in imported gypsum. Calcined gypsum used for board products rose by 2.94% to 10.5Mt and the total supply of board products rose by 3.11% to 1.17Bnm².

US: Taishan Gypsum and its owner China National Building Material Company (CNBM) have reached a US$1.98m settlement in one of its on-going legal cases related to alleged defective gypsum wallboard. The Chinese manufacturer says that it has reached settlement with the plantiffs. The case is a third-party claim initiated by original claimants Venture Supply and Porter-Blaine. Following receipt of the payment the plantiffs have agreed to waive all liabilities with respect to Taishan Gypsum.