Gypsum industry news
USG Boral’s earnings dip following slowdown in South Korea
27 February 2019Australia: USG Boral’s earnings fell in the first half of its financial year due to a slowdown in South Korea. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) dropped by 16% year-on-year to US$89.3m in the half-year to 31 December 2018 from US$107m in the same period in 2017. Its revenue grew by 2% to US$594m from US$583m. This was attributed to sales volumes growth in Australia, Indonesia, Vietnam and India.
Saint-Gobain’s Interior Solutions division performs well in 2018
27 February 2019France: Saint-Gobain’s Interior Solutions division’s sales revenue grew by 4% year-on-year to Euro7.17bn in 2018 from Euro6.88bn in 2017. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 11% to Euro1.06bn from Euro953m. Overall, the group’s sales and earnings rose in 2018, although at slower rates.
"As expected, our results for the second half show a significant improvement, benefiting from broadly supportive markets, a strong pricing dynamic and the settlement of industrial issues that had weighed on the group's profitability in the first half,” said Pierre-André de Chalendar, chairman and chief executive officer of Saint-Gobain. He added that the group has a program underway to divest sales of over Euro3bn by the end of 2019.
Sika reports growth in all regions in 2018
27 February 2019Switzerland: Sika’s net sales grew by 13.4% year-on-year to Euro6.23bn in 2018 from Euro5.5bn in 2017. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 7.6% to Euro1.01bn from Euro940m. The building chemicals producer reported growth in all regions, with highlights in Eastern Europe, the US, India, Indonesia and China.
USG’s operating profit falls as Knauf acquisition draws closer
15 February 2019US: USG’s net sales grew by 4% year-on-year to US$3.34bn in 2018 from US$3.20bn in 2017. Its operating profit fell by 36% to US$227m from US$353m. Sales from its wallboard and surfaces division were stable at US$1.93bn but its operating profit fell by 19% to US$248m. The building materials company said that its operating profit in the fourth quarter was negatively affected due to lower sales caused by the timing of when it announced wallboard price increases. USG’s takeover by Germany’s Knauf is expected to close in early 2019.
USG Boral warns of poor market in South Korea
04 February 2019Australia: Boral has warned that its USG Boral joint venture has suffered from market decline and competition in South Korea. It operations in the country were also negatively affected by Typhoon Soulik in August 2018. However, the company reported ‘strong’ results in Australia. Overall, Boral expects that USG Boral will contribute less earnings to the company in the first half of its financial year to the end of 2018.
Eagle Materials grows gypsum wallboard business
30 January 2019US: Eagle Materials’ revenue rose slightly to US$1.11bn in the nine months to 31 December 2018. Revenue from its Light Materials business, including gypsum wallboard, grew by 3% to US$479m from US$467m. Gypsum wallboard production dropped slightly to 185Mm2. Operating earnings increased by 13% to US$166m from US$146m.
“Adjusting for the effects of unusual weather trends during 2018 and a shift in the timing of wallboard price increases and related buying activity, we estimate that the overall market demand for our building materials, notably cement and wallboard, remained in positive territory in 2018, with growth rates in the low single digits,” said chief executive officer (CEO) Dave Powers.
Sika’s sales grow by 13.7% to Euro6.3bn in 2018
08 January 2019Switzerland: Sika’s sales grew by 13.7% year-on-year to Euro6.3bn in 2018 in local currencies. It reported above-average growth rates in Eastern Europe, Africa, the Middle East, US, Indonesia, India, China, and in its Global Business segment.
“With 11 new factories, an additional national subsidiary and four acquisitions, we have invested a great deal in our supply chain in the past year so that we can benefit from the growth in global construction markets and further expand our market position,” said chief executive officer (CEO) Paul Schuler.
GMS benefits from Titan acquisition and rising prices
05 December 2018US: GMS’s half-year wallboard sales have risen due to its acquisition of Canada’s Titan on 1 June 2018 and rising prices. Its wallboard sales rose by 14% year-on-year to US$652m in the half year to 31 October 2018, from US$573m in the same period in 2017. Overall, the wallboard distributor’s net sales increased by 25% to US$1.61bn.
Continental Building Products’ sales rise on demand
12 November 2018US: Continental Building Products’ net sales increased by 8% year-on-year to US$387m in the first nine months of 2018 from US$358m in the same period in 2017. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 13% to US$111m from US$98.8m. Its wallboard sales volumes grew by 7% to 67Mm2 from 62.6Mm2. it attributed the growth in sales volumes to ‘strong’ demand in its markets.
US: Eagle Materials’ sales revenue from gypsum wallboard rose in the first half of its financial year to 30 September 2018 due to higher prices. Its revenue from wallboard grew by 9% year-on-year to US$272m from US$250m. Its wallboard sales volumes increased by 3% to 124Mm2 from 121Mm2. The building materials producer said that Hurricane Florence had disrupted its southeastern markets reducing salese in the second quarter. Overall, the company’s sales across all businesses rose.