Gypsum industry news

US: USG Sheetrock® Brand UltraLight Gypsum Base Imperial is now being manufactured at six USG plants. The panel is the sixth product in USG's lightweight wallboard portfolio and will be available at retail, specialty dealer and pro-dealer distributors nationwide in September 2014. The launch extends USG's position as the industry's leader in lightweight innovation. The gypsum base panel is used when a project calls for a plaster veneer finish, and is up to 30% lighter than the current ½inch USG Imperial® Gypsum Base panel. The traditional panel will be discontinued upon the launch of the new panel.

US: Continental Building Products (CBP) has announced its results for the second quarter of 2014, which ended on 30 June 2014. Net sales increased by 3.2% to US$103m and adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) fell to US$26.7m from US$27.4m for the same period of 2013.

"During the second quarter we continued to grow our net sales, generate significant cash flow and strengthen our balance sheet," said Ike Preston, CBP's CEO. "Excluding the impact of higher freight costs, our average mill net pricing remained firm compared to the first quarter 2014, as expected. Our overall modest wallboard demand was supported by higher shipments in our US operations that grew by 3.1% compared to 2013. As we look to the remainder of 2014, we remain confident in our ability to maintain disciplined cost control and generate additional cash flow as demand improves."

Average gypsum wallboard prices rose by 4.1% during the quarter. Wallboard volumes rose slightly to 525Mft² compared to 523Mft² in the same quarter of 2013, with a 3.1% increase in US volumes mostly offset by lower volumes in Canada. The second quarter gross profit was significantly impacted by purchase accounting from the acquisition by Lone Star. Gross profit was US$20.9m, down compared to US$25.7m in the same quarter of 2013, primarily as a result of US$7.8m in higher depreciation and amortisation costs from the acquisition.

Operating income was US$12.8m in the second quarter of 2014, down from US$17.2m in the prior year quarter, largely attributable to the impact of higher depreciation and amortisation resulting from the Lone Star acquisition. Net income was US$4.7m for the second quarter of 2014, compared to US$16.7m in the prior year quarter.

Europe: Microban International has secured a European patent relating to treated wallboard, increasing its portfolio of wallboard technology patents that include the United States, Canada, Mexico, China, Hong Kong, Australia and Brazil. The patent covers the incorporation of an antimicrobial additive package into the wallboard to resist the growth of mould and mildew. The patented wallboard employs a two-part anti-microbial system and an innovative targeting approach to provide protection against mould, mildew and fungus.

"These types of product patents help us to develop new specific formulations for dealing with microbial issues that wallboard may have, especially in humid or damp areas," said Ivan Ong, VP of research and development. "In wallboard, fungal issues typically occur at the interface between the paper and the gypsum core. Fungal infiltration of this nature can occur without visual cues until it becomes extensive and damaging. The patent provides an effective and manufacturing-friendly method to deliver a combinatorial package of antimicrobial agents to specifically target microbial issues this interface."

US: Stephen H Meima has been named as the executive director of the Gypsum Association. In this position, he leads the organisation's day-to-day operations, oversees its significant contributions to model building codes and standards and ensures that Association member companies and their customers receive vital services, including technical information on the proper selection and installation of gypsum panel products. The Gypsum Association represents all of the active gypsum wallboard manufacturers in the United States and Canada.

"The Gypsum Association has a lengthy history of service to both the gypsum community and the public in North America," said Meima. "I am proud to represent a building materials industry with a tradition of innovation and sustainability and an established commitment to safety and consumer satisfaction."

In addition to serving as the Gypsum Association's director of promotion from 1996 to 1999, Meima returned as CEO in 2013. During the interim, he served within a Gypsum Association member company for over a decade, taking on various marketing and communications leadership roles. Meima also headed marketing and membership at the Design-Build Institute of America.

A LEED Green Associate credential has enhanced Meima's ability to serve building professionals at a time when sustainability has taken on new and growing significance within the industry. In addition, Meima holds an Accreditation in Public Relations from the Public Relations Society of America.

US: USG Corporation has reported its strongest quarterly net income since 2007. Second quarter 2014 net sales of US$948m were up by 3% from second quarter 2013 net sales of US$916m. USG's second quarter 2014 operating profit was US$98m compared to US$74m in the second quarter of 2013. Second quarter 2014 net income was US$57m. This compares to a net income of US$25m in the second quarter of 2013.

"I'm pleased to report our best quarterly results in seven years," said James S Metcalf, chairman, president, and CEO of USG. "Despite slower than expected acceleration in industry opportunity, most of our businesses and products improved their performance from a year ago and we also recorded our first full quarter of operations in our USG Boral joint venture."

The corporation's adjusted operating profit was US$93m in the second quarter of 2014, which includes adjusted equity method investment income of US$6m from USG Boral Building Products, compared to an adjusted operating profit of US$76m in the second quarter of 2013. Adjusted net income was US$48m in the second quarter of 2014 compared to an adjusted net income of US$26m in the second quarter of 2013. Adjusted net income in the second quarter of 2014 excluded, among other items, a US$12m gain on the sale of its New Jersey paper mill, which has been idled since 2009.

"We remain confident in the recovery, but challenges in the macro-economic environment still exist," said Metcalf. "However, we believe that the second half of the year will be better than the first half and we are well positioned to capitalise on the improving opportunity."