Gypsum industry news
USG’s fourth quarter sales up by 4% 06 February 2015
US: USG Corporation has reported fourth quarter 2014 net sales of US$954m, up by 4% from the fourth quarter of 2013, when net sales were US$915m. Its fourth quarter 2014 operating loss was US$24m compared to US$60m of operating profit in the fourth quarter of 2013, primarily due to US$75m of charges for impairments and other related costs associated with its non-core shipping business and US$13m of charges to permanently settle a pension plan in the UK. During the fourth quarter of 2014, net loss attributable to USG was US$53m compared to US$3m in the fourth quarter of 2013.
"I'm pleased with the progress we made towards our 'Plan to Win' during the quarter, delivering strong adjusted operating profit from our operations," said James S. Metcalf, chairman, president, and CEO. "All of our businesses are heading in the right direction and we are well positioned for profitable growth in all of our improving end markets."
USG's adjusted operating profit was US$79m in the fourth quarter of 2014, which includes, among other items, adjusted equity method investment income of US$14m from USG Boral Building Products, compared to an adjusted operating profit of US$75m in the fourth quarter of 2013. Adjusted net income was US$35m in the fourth quarter of 2014 compared to US$22m in the fourth quarter of 2013. Adjusted net income and adjusted operating profit in the fourth quarter of 2014 excluded long-lived asset impairment charges of US$60m and contract termination and loss on receivable charges of US$15m related to the corporation's non-core shipping business, as well as a pension settlement charge of US$13m related to the wind-up of its pension plan in the UK.
USG recorded full year 2014 net sales of US$3.7bn and an operating profit of US$162m, with a net income of US$37m. On an adjusted basis for the full year of 2014, adjusted operating profit was US$353m and adjusted net income was US$168m. For the full year of 2013, net sales were US$3.6bn, operating profit was US$258m and net income was US$47m. On an adjusted basis for the full year of 2013, adjusted operating profit was US$278m and adjusted net income of US$73m.
"In 2014 our adjusted net income of US$168m more than doubled relative to what we generated in 2013, with our USG Boral joint venture contributing significantly to our success," said Metcalf. "While the pace of the recovery is clearly more shallow than what we were anticipating, our trajectory continues to be positive and we are confident that 2015 will outperform 2014."
Minor mineral mining, including gypsum, now under state control 06 February 2015
India: The Centre of Mining has decided to put 31 minerals under the control of state governments by scaling down their status from major to minor as part of a mining policy change, according to Mines minister Narendra Singh Tomar. This allows states to decide the mining lease of the minerals, which account for about 60% of the total leased area in the country.
The decentralised minerals include gypsum, quartz, chalk and china clay. The change in policy will let states decide the rate of royalty, contribution to the district mineral foundation, procedure for grant of mineral concessions and rules. The Mines Ministry will allow states' public sector undertakings to explore minerals in areas under their jurisdiction.
"It is an important step in fulfilling the minimum government, maximum governance motto of our government," said Tomar. "This is being done to devolve more power to the states and expedite the process of mineral development in the country." States cannot lease out major minerals such as coal and iron ore without mandatory clearances from central ministries. High revenue earners, coal and iron ore, retain their positions as major minerals even after the policy shift.
The decision to broaden the list of minor minerals should drastically shorten the lease approval process because the state would be dealing with all the paperwork. Production should also increase. However, India could be treading on a minefield of environmental degradation if adequate protection measures are not taken.