Gypsum industry news

Australia: Boral's profit after tax has risen by 8% year-on-year to US$204m in its financial year which ended on 30 June 2016 from US$190m in the previous year. Its sales revenue fell, by 2% to US$3.28bn, but revenue from continuing operations rose slightly. Revenue from continuing operations benefitted from stronger residential activity in Australia and the US, which offset the decline in resource-based and other major project activity. The company's earnings before interest and tax (EBIT) also rose due to operational cost improvements, lower fuel costs and some pricing gains.

"We have continued to improve our performance across our businesses in line with our strategy, managing our portfolio more efficiently and maintaining a strong balance sheet," said CEO and managing director Mike Kane. "The continued growth in Boral's earnings demonstrates the great work that has been done to improve our cost base, grow margins, and efficiently supply market demand, which continues to be strong in Australia and Asia, and is growing in the US."

The group's joint-venture with USG, USG Boral, saw its revenue rise by 10% to US$1.06bn from US$965m. This was attributed to growth in Sheetrock product
wallboard sales resulting in higher pricing, and growth in adjacent product (non-board) sales. Strong volume growth in Australia was offset by contraction in key Asian markets and price competition in South Korea. EBIT increased by 27% to US$136m from US$107m.

US: Continental Building Products' (CBP) net sales have risen by 12.5% year-on-year to US$229m in the first half of 2016 from US$204m in the same period in 2015. Its net income rose to US$25.2m from US$1.89m. Sales volumes of gypsum wallboard rose by 4.2% to 59.7Mm² from 57.3Mm².

"For the second consecutive quarter, we experienced stronger demand in our markets east of the Mississippi, which generated a 13% increase in wallboard volume versus the prior year," said Jay Bachmann, the chief executive officer of CBP.

France: Saint-Gobain's sales revenue has fallen by 1.6% year-on-year to Euro19.6bn in the first half of 2016 from Euro19.9bn in the same period of 2015. Its earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 3.8% to Euro1.89bn from Euro1.96bn. The group blamed the loss in sales revenue on negative currency changes, especially in Latin American, and to a lesser extent, in the UK following its decision to leave the European Union. Saint-Gobain's Interior Solutions division, which includes gypsum wallboard and insulation production, reported a 3.1% rise in sales revenue to Euro3.3bn from Euro3.2bn.

"Saint-Gobain's sales for first-half 2016 confirm our February forecasts, with France stabilising and all regions making strong contribution to growth. Our strategy of investing in emerging markets provides us with a diversified platform for profitable growth. Our first-half results also benefited from efforts to optimise our operations, particularly in Western Europe, and from upbeat trading in the US. The results are in line with our objectives and we expect alike-for-like improvement in operating income for second-half 2016 versus second-half 2015. While the 23 June 2016 Brexit vote in the UK has created a climate of uncertainty, it does not affect our objectives," said Pierre-André de Chalendar, Chairman and Chief Executive Officer of Saint-Gobain.

US: USG's net sales have risen by 5% year-on-year to US$1.97bn in the first half of 2016 from US$1.90bn in the same period in 2015. The company's net income rose by 37% to US$141m from US$103m. Net sales for its overall gypsum business rose by 6% to US$1.27bn from US$1.19bn. However, net sales for its gypsum business in Mexico and Latin America fell by 3% to US$93m in the first half of 2016 from US$94m in the same period of 2015.

"Our focus on operational execution in all of our businesses drove our improved second quarter results," said James S Metcalf, Chairman, President, and CEO of USG. "Expanding operating margins is a key priority for USG, and we delivered margin expansion in all of our businesses in the second quarter."

US: Eagle Materials' sales revenue from gypsum wallboard has fallen slightly by 1.6% year-on-year to US$113m in the first quarter of its 2017 financial year that ended on 30 June 2016 from US$115m in the same period in 2015. Overall company revenue rose by 1.5% to US$298m from US$285m. Gypsum wallboard sales volumes rose by 2% to 54Mm² from 53Mm².

Saudi Arabia: National Gypsum Company has reported that its net profit fell by 64% year-on-year to US$1.5m in the first half of 2016, from US$4.2m in the same period in 2015. Its net profit for the second quarter of 2016 fell more sharply, dropping by 80% to US$573,000.

US: Eagle Materials has reported that its revenue rose by 7% year-on-year to US$1.14bn in the financial year that ended on 31 March 2016 from US$1.07bn in the previous period. Its earnings fell by 18% to US$153m from US$187m.

By business sector its gypsum wallboard operating earnings rose by 9% to US$159m from US$146m. Its wallboard sales volumes rose by 8% to 222Mm² from 205Mm².

US: Continental Building Products' net sales have rise by 21% year-on-year to US$111m in the first quarter for 2016 from US$92m in the same period in 2015. Its wallboard sales volumes have grown by 32% to 57Mm² from 44Mm².

"Our wallboard volumes in the first quarter increased substantially from prior year due to strong underlying demand, favourable weather speeding up completion of projects, and pre-buy activity in advance of the April 1 price increase," said Jay Bachmann, Continental's chief executive officer.

US: USG's net sales have risen by 7% year-on-year to US$970m in the first quarter of 2016 from US$909m in the same period in 2015. Its operating profit rose by 67% to US$127m from US$76m. The building products company reported sales growth across its gypsum wallboard, ceilings and distribution businesses.

"We're off to a strong start in 2016, with arguably the best quarter we've had in almost a decade," said James S Metcalf, Chairman, President, and CEO. "We realised significant operating margin expansion in all of our US operations, led by our ceilings business which turned in an all-time record quarter."

The corporation's gypsum business saw its net sales rise by 10% to US$635m from US$577m. Its operating profit rose by 63% to US$111m from US$68m.
Wallboard sales volumes rose by 20% while the wallboard price was down roughly 2% on differences in mix and the timing of price increases. The corporation reported that a 28 March 2016 wallboard price increase has driven price improvement in wallboard through the first three weeks of the second quarter of 2016.

The USG Boral business generated US$7m of equity method income in the first quarter of 2016, down US$1m from the first quarter of 2015 due to poor exchange rates.

Belgium: Etex's cladding and building board sales revenue rose by 5% year-on-year to Euro1.44bn in 2015 from Euro1.38bn in 2014. It attributed the growth to a strong market in the UK, stabilised performance in construction markets in Germany and the Benelux region and recovery in most of South America.

Overall the company reported that its revenue rose by 2.3% to Euro3.05bn from Euro2.99bn. However, its profit fell by 60% to Euro37m from Euro95m. This was attributed to restructuring in Argentina, France and Germany and impairment charges. The cladding and building board business represents 47% of Etex's building products portfolio. It built three gypsum wallboard plants, in Peru, Brazil and Romania, in 2015.

Etex expects to achieve modest growth in revenue and profit in 2016.