Gypsum industry news

US: USG's net sales have risen by 7% year-on-year to US$970m in the first quarter of 2016 from US$909m in the same period in 2015. Its operating profit rose by 67% to US$127m from US$76m. The building products company reported sales growth across its gypsum wallboard, ceilings and distribution businesses.

"We're off to a strong start in 2016, with arguably the best quarter we've had in almost a decade," said James S Metcalf, Chairman, President, and CEO. "We realised significant operating margin expansion in all of our US operations, led by our ceilings business which turned in an all-time record quarter."

The corporation's gypsum business saw its net sales rise by 10% to US$635m from US$577m. Its operating profit rose by 63% to US$111m from US$68m.
Wallboard sales volumes rose by 20% while the wallboard price was down roughly 2% on differences in mix and the timing of price increases. The corporation reported that a 28 March 2016 wallboard price increase has driven price improvement in wallboard through the first three weeks of the second quarter of 2016.

The USG Boral business generated US$7m of equity method income in the first quarter of 2016, down US$1m from the first quarter of 2015 due to poor exchange rates.

US: USG has launched USG Securock Brand UltraLight Glass-Mat Sheathing, a lightweight gypsum wallboard designed for use under exterior claddings. The board has a coated fibreglass facer mat to maximise coverage of air/water barrier systems, it has a treated gypsum core with a fibreglass face and back to provide water resistance and USG say it meets or exceeds the requirements of ASTM C1177.

"Our customers are always looking for innovative products to give them an edge, which is why USG is focused on bringing our gypsum panel technology to the glass-mat category," said Greg Salah, senior vice president, USG Corporation and president, North America. Securock will be rolled out regionally.

US: Transnational Group has delayed the start of gypsum mining and production at its property in Sandy Valley, Nevada. It blamed the setback on unforeseen delays by the Bureau of Land Management (BLM) in issuing Transnational's exploration permits due to the agency's lack of resources. It anticipates that it will will be able to obtain the necessary permits to commence exploration at the site within sixty to ninety days, barring any additional requests or delays by the BLM.

"Due to delays imposed by the BLM stemming from its lack of qualified geologists in our area that could not be foreseen by management, the timeline of our Sandy Valley Project has been extended. However, we expect to secure an exploration permit in the near future and anticipate that Transnational will continue its progress towards producing gypsum on this property," stated Transnational Group's CEO, Philip Dutoit.

US: Continental Building Products has elected Ed Bosowski to serve as chairman of the board of directors effective from 18 March 2016. He replaces Brad Boggess. Bosowski has been a member of the board of directors of the company since February 2014, and has over 30 years of experience in the gypsum wallboard industry.

The company also announced that Brad Boggess, Kyle Volluz and Grant Wilbeck resigned from the board of directors on 18 March 2016 following the sale by an affiliate of Lone Star Funds of all remaining shares of stock it held in the company. The three departing board members were affiliated to Lone Star Funds. The board of directors of Continental Building Products currently consists of five independent members and the company's president and CEO.

US: Headwaters Resources has announced it has entered into a definitive agreement to purchase 100% of the membership interests of Synthetic Materials based in Louisville, Kentucky. The acquisition, which is subject to the satisfaction of certain closing conditions, is expected to close in Headwaters current fiscal year. It is intended to complement the coal combustion product management operations of Headwaters.

Synthetic Materials handles synthetic gypsum processing and management. It has 21 years of experience providing services to the flue gas desulfurisation industry, including the design and construction of gypsum dewatering systems, gypsum marketing, landfill and pond management. At present it provides operations and maintenance services at 10 different utility sites and manages over 4Mt/yr of bulk synthetic gypsum, generating approximately US$25m in annual revenue. The expected purchase price will range between US$38 – 45m, depending upon certain conditions.

US: Continental Building Products sales fell slightly to US$422m in 2015 from US$425m in 2014. Despite this its net income rose by 5% to US$16.7m from US$15.9m. Wallboard volumes sales rose by 0.9% to 204Mm² from 203Mm².

Canada: Gypsum revenues grew at Superior Plus in the fourth quarter of 2015. Revenue for its Construction Products Distribution division grew by 11% year-on-year to US$244m from US$220m in the previous period in 2014. It attributed the growth to improved US sales volumes as a result of on-going improvements in the US residential construction sector, an increase in average selling prices and currency effects. Canadian revenues fell slightly year-on-year for the quarter.

Overall Superior Plus reported an increase in its gross profit of 11% year-on-year to US$241m for the fourth quarter from US$248m in the previous year. However, its revenue fell by 15% to US$814m from US$957m. The company operates a diverse portfolio of businesses in construction products distribution, propane distribution, speciality chemical supplies and energy services.

US: USG Corporation has grown its gypsum business operating profit by 65% year-on-year to US$316m in 2015 from US$192m in 2014. The company attributed the results to price rises.

"We finished 2015 on a strong note by achieving impressive margin expansion in our Gypsum and Ceilings businesses. Improved pricing in both businesses, coupled with our cost discipline, drove this increased performance," said James S Metcalf, Chairman, President and CEO.

Net sales for its gypsum business rose by 5% year-on-year to US$2bn from US$1.9bn. Notably, sales dropped by 4% to US$187m in its Mexico and Latin America region although profits rose in the saUSHme period.

As a whole, the company reported sales of US$3.78bn in 2015, a slight rise from 2014. Operating profit more than doubled to US$381m from US$162m. Its USG Boral business reported that its net sales rose by 7.6% to US$1bn. Its operating profit rose by 30.5% to US$125m.

US: Gypsum Management and Supply (GMS) has acquired Robert N Karpp Company, a drywall supplier based in Boston, Massachusetts. The purchase gives GMS, a North American distributor of gypsum wallboard and suspending ceiling systems, entry into the New England market.

"This addition to our business is a natural fit for GMS as we continue to expand our geographic footprint, while providing our resources as a national brand to help support new and existing local yards," said Mike Anderson, the GMS VP of Operations for the Northeast region.

US: Transnational Group has appointed Israel Gamliel as the company's Chief Operating Officer (COO). The firm is a mineral and natural resource exploration company focused on acquiring and mining mineral-rich assets, including high-grade gypsum, in the Southwestern US.

"Transnational Group is very pleased to welcome Israel Gamliel as our new COO. He has demonstrated an ability to lead companies through periods of significant revenue growth in a short time frame through the optimum management of people, products, raw materials and financial resources," said the Company's CEO, Philip Dutoit.

Gamliel has several years of experience serving as the CEO, president and owner of multiple companies in diverse markets including construction, real estate and the garment industry.