Gypsum industry news

US: United States Gypsum Corporation subsidiary L&W Supply has announced the closure of eight of its stores, citing a continued weak US housing market. It also announced that it was to wrap up its Nevada-based custom door and frames business by the end of the current quarter. The closure is expected to cost the unit somewhere in the region of USD13-15m in total.

US: Waste-to-energy projects developer Recycled Energy Development (RED) and building products maker National Gypsum Co (NGC) have jointly announced the development of a combined heat and power (CHP) project at NGC's Burlington 32MM²/yr facility in the state of New Jersey.

The project has received a USD1.36m grant from the state through its Clean Energy Solutions ARRA CHP grant programme. The CHP plant will reportedly have an electricity generation capacity of 3.4MW, representing around 210,000MMBtu of thermal energy, which will result in an overall efficiency of greater than 90%.

"The NGC project will increase industrial productivity, generate clean power and reduce CO₂ emissions," said Sean Casten, RED's president and CEO. "We appreciate the State's support and look forward to investing in New Jersey."

"CHP offers a win-win for manufacturers," said John Corsi, VP of Manufacturing Operations and Engineering of NGC. "This facility allows NGC to further strengthen our competitiveness as well as improve our environmental stewardship."

US: Eagle Materials, Inc has released its fiscal results for the first quarter (ending 30 June 2011) of the 2012 financial year. Its revenues were USD119.8m and its net earnings were USD3.1m, with earnings per diluted share of USD0.07.

In a statement Eagle said that demand for building materials and construction products remained weak and that it would continue to streamline its operations in response to these lower levels of construction activity. Revenues decreased compared to 2010, primarily due to lower sales volumes across all of Eagle's businesses sections.

Eagle's 'Gypsum Wallboard and Paperboard' section first fiscal quarter operating earnings of USD4.3m were down by 53% compared to the same quarter of 2010. The section's revenues for the first quarter totaled USD70.3m, a 9% decrease from the same quarter of 2010.

The revenue decline reflects lower sales volumes and lower average net sales prices. The average gypsum wallboard net sales price the quarter was USD90.03/MSF, 8% less than the 2010 quarter. Gypsum wallboard sales volumes for the quarter were 412MMSF, representing a 9% decline compared to the same quarter of 2010.

US: USG Corporation (USG) has reported second quarter 2011 net sales of USD761m, an operating loss of USD21m and a net loss of USD70m. For comparison in the second quarter of 2010, the corporation's operating loss was USD25m and its net loss was USD74m.

US Gypsum wallboard shipments totaled 986MMSF, down on the second quarter of 2010, which saw 1070MMSF shipped. The average selling price was also down, from USD114.17/MSF on average to USD111.55/MSF.

"We are continuing to pursue our near-term and long-term strategic priorities during the protracted recession in our domestic markets," said James Metcalf, President and CEO of USG. "By strengthening our core businesses, diversifying the sources of our earnings and aggressively leveraging our innovation leadership to differentiate USG's products from the competition, we are confident that we can successfully navigate this recession and capitalise on a recovery."

The corporation's adjusted operating loss was USD19m in the second quarter of 2011, which compares to an adjusted operating loss of USD18m in the second quarter of 2010. The adjusted operating loss for the second quarter of 2011 excludes USD2m of restructuring and long-lived asset impairment charges, while the adjusted operating loss for the second quarter of 2010 excluded USD7m.

US: On 21 June 2011 United States Gypsum Co. was assigned a patent for 'Gypsum-containing product and method for producing same.' The inventors were named as Qiang Yu, Steven W Sucech, Brent E Groza, Raymond J Mlinac, Frederick T Jones and Paul J Henkels, all from the US.

According to the abstract released by the US Patent & Trademark Office, 'The invention provides a set gypsum-containing product having increased resistance to permanent deformation and a method for preparing it comprising forming a mixture of a calcium sulphate material, water and an appropriate amount of one or more enhancing materials chosen from condensed phosphoric acids, each of which comprises two or more phosphoric acid units; and salts or ions of condensed phosphates, each of which comprises two or more phosphate units. The mixture is then maintained under conditions sufficient for the calcium sulphate material to form a set gypsum material.'

Saudi Arabia: National Gypsum Company has released its financial results for the year to 31 December 2010, which show a significant decline in its performance compared to 2009. The company's net profit was down by 40.7% to USD 14m. Sales were down by 24% from USD 54.1m in 2009 to USD 41.1m in 2010.

US: Like other makers of building products, United States Gypsum Company (USG), the US's largest maker of wallboard thrived during the US housing boom. But the company fell into the red in the fourth quarter of 2007 and is yet to climb out. With the anticipated housing rebound remaining elusive, average home prices in the first quarter of 2011 dropped to back to 2002 levels. This weak housing demand has spurred fears the economy may yet return to recession, with further losses expected for USG in the coming months.

USG Chief Executive James Metcalf, joked in a recent interview at the company's headquarters that he was getting tired of being asked to speak at conferences about 'managing in turbulent times' and has declined to predict when his company will return to the black.

Metcalf said that the company was building more modern plants and couldn't have foreseen the precipitous drop in housing construction, currently running at around a quarter of the peak level. USG has cut its work force by about one-third, to about 9250, since the peak. It has shrunk wallboard production capacity by about 30%, closing eight wallboard plants and idling others. The company's prolonged slump shows the peril of relying heavily on any one part of the world, even a market as large as the US, which accounts for 77% of USG's sales.

That said, USG is trying to build up sales in China, parts of Latin America and a few other areas without going fully global. Metcalf said, "We're putting bets down now -- small bets." For now though, the company's top priority is surviving the US housing collapse.

US: CertainTeed is introducing a new wallboard solution, the 'Easi-Lite' wallboard. Easi-Lite boards are up to 30% lighter than normal wallboard and can be used in both interior ceilings and walls in residential and commercial applications.

Its lightweight characteristics make it more easy to transport, stock at worksites and install by hand, helping to reduce muscle strain and worker fatigue. The new product is also easier to score and snap for improved installation. It has been designed with sag resistance in mind and as such it is ideal for 12mm (0.5-inch) ceiling applications, allowing for one board type to be used for interior ceilings as well as walls.

Easi-Lite wallboard panels have a high-strength, sag-resistant gypsum core with a 100% recycled face and back paper and they enable installers to achieve the same high performance standards of a traditional wallboard. It is Greenguard® Children and Schools certified and designated as a low volatile organic compound (VOC) emitting product.

"Building professionals are constantly looking for innovative ways to streamline their processes to maximise profitability without sacrificing quality," said President of CertainTeed Gypsum John Donaldson. "The introduction of Easi-Lite complements CertainTeed's comprehensive product line and strengthens our position as a single source for products that meet a wide range of performance attributes and specifications."

US: National Gypsum Company has announced that the plaintiff in Yee versus National Gypsum, et al. (pending in the US District Court for the District of Arizona) voluntarily dismissed his putative nationwide class action lawsuit filed against the company in October 2009.

"While we are pleased with the outcome of this case, we are hardly surprised. Throughout this litigation, we have never doubted the quality and safety of our gypsum wallboard and were confident we would be fully exonerated," said Craig Weisbruch, senior vice president of sales and marketing. "Our wallboard has passed the industry's most rigorous testing and certification processes for indoor air quality and has been used by the US Environmental Protection Agency (EPA) and the US Green Building Council in their buildings."

The putative class action, (Raymond) Yee versus National Gypsum, et al., alleged that the company manufactured defective wallboard that emitted high levels of sulphur, damaged property inside homes and caused health problems. These problems have typically been associated with allegedy defective Chinese wallboard and not US wallboard. National Gypsum vigorously defended itself against the claims and denied all allegations. The plaintiff did not produce any credible scientific evidence that could substantiate his allegations. "We have not seen any reliable evidence that our gypsum wallboard poses any of the issues associated with defective Chinese wallboard," said Weisbruch.

"The decision to dismiss the case without prejudice is not a reflection of the merits of Mr Yee's case," said William Anderson, an attorney representing the Arizona homeowner. "The dismissal in no way exonerates National Gypsum and any assertion to the contrary is irresponsible and false. Mr Yee is a member of the proposed class in litigation in Florida and we will watch with great interest how that case proceeds."

Robert Gary, who is working on the Florida case, said it made sense to move Yee's case to the Florida lawsuit. The 93 plaintiffs in that lawsuit say that National Gypsum wallboard caused corrosion problems in their homes. "Everyone has decided that the cases are most appropriately centred in Florida, because that's where the bulk of the victims are," said Gary. "The suit involves the same team of lawyers involved in the Arizona case."

The Consumer Product Safety Commission is leading its own investigation into reported American wallboard problems.