Gypsum industry news
Continental Building Products fights slow home build market in second quarter of 2019
05 August 2019US: 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.
Continental Building Products shuts down Buchanan gypsum wallboard plant after mechanical failure
31 January 2019US: Continental Building Products says that a significant equipment malfunction took place at its Buchanan gypsum wallboard plant in New York state on 24 January 2019. The plant will likely be shut until the end of February 2019 to make repairs. Standard insurance coverage is expected to pay for the maintenance work. No staff injuries occurred during the incident.
"We apologise to our customers for any disruptions caused by these supply constraints," said Jay Bachmann, president and chief executive officer (CEO) of Continental building Products.
The company expects to limit new orders for shipments normally delivered from our Buchanan plant during the shutdown. The 60Mm2 plant represents about 20% of the company’s wallboard production capacity. Plants in Silver Grove, Kentucky and Palatka, Florida will make up some of the shortfall while the Buchanan plant is being repaired. However the company admitted that due to ‘capacity constraints, logistics and product availability’ the two plants will be unable to make up for all of the lost production.
