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Gypsum industry news
US: Eagle Materials has reported financial results for the first quarter of fiscal 2015, which ended on 30 June 2014. First quarter earnings before interest and income taxes increased by 21% year-on-year to US$59.8m, as first quarter sales volumes improved across nearly all businesses areas and sales prices improved in all businesses.
Gypsum wallboard and paperboard reported first quarter operating earnings were US$45.0m, up by 27% from the same quarter of its 2014 fiscal year. Improved wallboard sales prices and increased wallboard and paperboard sales volumes were the primary drivers of the earnings increase. Wallboard and paperboard revenues totalled US$136m, an 18% year-on-year increase. The revenue increase reflects higher average wallboard sales prices and higher wallboard and paperboard sales volumes. The average wallboard sales price grew by 11% year-on-year. Wallboard sales volumes of 569Mft2 represent a 7% year-on-year increase.
Housing upturn aids Thai Gypsum Products
02 July 2014Thailand: Thai Gypsum Products Plc (TGP), a subsidiary of France's Saint-Gobain, expects sales of its Gyproc construction and finishing materials will expand by 5% in 2014, citing continuous growth in home renovations and building markets.
Thongchai Kamolpattana, the commercial director for the Gyproc brand, said that demand from housing projects and home renovations had increased since 2013 and would allow TGP to earn higher revenue in 2014. Kamolpattana added that provincial markets would keep Gyproc sales afloat even if political problems persist in Bangkok.
Earlier in 2014 TGP experienced a minor negative effect from the prolonged political impasse that caused consumers to delay decisions to buy condominium units in Bangkok. "Demand for condominiums declined because customers in Bangkok took a wait-and-see stance," said Kamolpattana. "However, our market still did well in other provinces." He added that if political problems continue until year-end, TGP's performance in Bangkok might be affected. "If so, consumer confidence would be badly affected and that might reduce demand for our products. However, business confidence has rebounded since the coup."
Gyproc has expanded into modern-trade malls, particularly in Chiang Mai and Chon Buri provinces, helping the brand to boost sales by 5%. The products are available in 400 malls, resulting in greater brand awareness and accessibility to its products among contractors and homeowners nationwide.
The company plans to open more Gyproc solution centres in 2014, including in Phuket, in order to prepare for rising opportunities under the Asean Economic Community, which is due to kick off late in 2015. According to Kamolpattana, gypsum boards have gained strong market recognition in 20 Asia-Pacific markets, particularly the Philippines, Malaysia, Indonesia and Australia.
FAGMIL reports US8.74m profit for 2013 - 2014
01 July 2014India: Gypsum producer FCI Aravali Gypsum and Minerals India Ltd (FAGMIL) has announced profits of US$8.74m in 2013 – 2014, up from US$2.64m in 2009 – 2010.
US: Eagle Materials Inc has reported financial results for fiscal year 2014, which ended on 31 March 2014. Company revenues were up by 40% year-on-year to US$898.4m and net earnings grew by 50% year-on-year to US$200m, reflecting improved sales volumes and stronger sales prices across all business lines. Annual revenue and earnings improvement also reflects the acquisition of assets, including cement plants in Missouri and Oklahoma on 30 November 2012.
Fiscal 2014 operating earnings from gypsum wallboard and paperboard grew by 46% year-on-year to US$138.5m. Revenues from gypsum wallboard and paperboard were up by 22% year-on-year at US$465.1m.
Gypsum wallboard and paperboard fourth quarter operating earnings were US$29.0m, up by 9% from the same quarter of fiscal 2013. The increase in operating earnings was due to higher wallboard sales prices and volumes, which were offset by US$1.5m maintenance costs, US$1.3m legal costs and US$0.9m natural gas costs, all of which grew compared with fiscal 2013. Gypsum wallboard and paperboard revenues for the fourth quarter grew by 11% year-on-year to US$106.3m. Wallboard sales volumes were up by 2% year-on-year to 442Mft2 and paperboard sales volumes for the quarter grew by 4% year-on-year to 59,000t.
US: Continental Building Products, a manufacturer of gypsum wallboard and complementary finishing products, has announced its results for the first quarter of 2014, which ended on 31 March 2014.
Net sales increased by 4.2% to US$87.0m in the first quarter of 2014, up from US$83.5m for the same period of 2013. Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) were US$20.2m, unchanged from 2013, operating income was US$6.3m, down from US$10.0m in 2013 and adjusted net loss was US$0.6m, compared to a net income of US$9.8m in 2013. Wallboard sales volumes were flat at 438Mft2 due to adverse weather conditions. Lower wallboard sales volumes in Canada offset a 2.2% increase in US sales volumes.
"We achieved strong price gains in the first quarter of 2014 amid flat volumes, which were unfavourably impacted by adverse weather conditions in many of our markets in the eastern US," said Ike Preston, Continental's CEO. "Our adjusted EBITDA was stable compared to a year ago as our improvement in sales was offset primarily by higher energy costs. As we move forward in 2014, we believe the long-term recovery in housing markets remains in place and that we are well positioned to grow our business and leverage our low cost as demand improves."
USG first quarter 2014 profit up
25 April 2014US: USG Corp has reported a surge in profit for the first quarter of 2014, primarily on increased shipments and higher selling prices.
Chief executive officer James Metcalf said, "Despite the harsh winter conditions across most of the US during the first quarter of 2014, we delivered positive operating results and net income."
USG said that its US gypsum wallboard shipments rose to 1.15Bnft2 (107Bnm2) from 1.11Bnft2 (103Bnm2), while average wallboard prices climbed to US$166.66/1000ft2 from US$153.07/1000ft2 in 2013. Net sales for the first quarter of 2014 grew to US$850m, up from US$814m in the corresponding quarter of 2013. USG's first quarter profit surged to US$45m from US$2m.
USA: Continental Building Products, which acquired Lafarge North America's gypsum wallboard assets on 30 August 2013, has announced results for the fourth quarter and fiscal year ending 31 December 2013.
In the fourth quarter of 2013, CBP saw its net sales increase by 30% to US$114m compared to Lafarge's like-for-like performance in the fourth quarter of 2012. Its operating income rose from US$2.8m for the 2012 quarter to US$15.9m and its adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) more than doubled to US$29.8m. Net income for the fourth quarter of 2013 was up by 125% year-on-year to US$6.7m. CBP sold 58.7Mm3 of gypsum wallboard during the fourth quarter, a rise of 18% year-on-year.
Over the whole of 2013, which necessarily includes results from Lafarge North America's former gypsum wallboard operations, CBP saw its net sales rise by 29% to US$402m and operating income improve to a profit of U$29.8m compared to a loss of US$45.4m in 2012. Adjusted EBITDA increased by 152% to US$103m for the year, while net income was positive at US$4.9m, compared to a net loss of US$68.7m in 2012.
"The positive momentum in our business continued into the year end, resulting in a net sales increase of 30% during the fourth quarter," said Ike Preston, CEO of CPB. "As we progressed though the year, rising housing starts provided favourable residential construction activity, our repair and remodel end markets improved and commercial orders started to show early signs of a recovery. The improvement in our performance reflects the improved demand environment but is even more reflective of our market-leading positions that we have forged in attractive regions throughout the eastern United States."
"The significant investments that we have made to modernise our capacity allowed us to more than double our adjusted EBITDA in the fourth quarter of 2013," continued Preston. "We believe we are well positioned to continue growing our business as we leverage our existing capacity and low cost production capabilities to support additional profit expansion and cash generation over time."
Boral reports 73% jump in half year profit
12 February 2014Australia: Boral has reported that its half year underlying net profit jumped by 73% on the back of improved housing and road construction markets, cost cutting measures and dry weather conditions. The company saw its underlying net profit rise to US$81.5m in the six months to 31 December 2013. However, the company also warned of a slowdown in activity and earnings in the second half of the financial year, which runs until 30 June 2014.
Boral actually recorded a net loss of US$23.6m for the half year but this figure includes US$106m in one-off accounting charges related to its gypsum plasterboard joint venture, due to be completed on 28 February 2014, which it says will be offset by gains in the second half.
Chief executive Mike Kane highlighted a US$20.8m turnaround in the Australian building products division and a 6% lift in its largest division, building materials and cement.
"The rise was driven by strong project activity, very dry weather conditions in New South Wales and Queensland and the benefit of restructuring and overhead cost reduction initiatives," said Kane. "Despite expected underlying performance improvements, there will be a skew of earnings to the first half compared to the second half due to higher major project volumes, dry weather conditions in the first half and the impact of the gypsum joint venture."
The company achieved US$54.7m in cost savings, much of which came from cutting 1000 jobs. Boral plans to use much of a US$453m payment from its gypsum partner USG to reduce its US$1.26bn net debt.
USG generates net income in 2013, for the first time since 2007
06 February 2014US: USG Corporation has reported fourth quarter 2013 net sales of US$915m, up by 12% from fourth quarter 2012 net sales of US$815m. USG's fourth quarter 2013 operating profit was US$60m compared to an US$8m operating loss in the fourth quarter of 2012. USG's fourth quarter 2013 net loss was US$3m, compared to a US$13m net loss in the same period of 2012.
USG's adjusted net income was US$22m in the fourth quarter of 2013 compared to an adjusted net loss of US$52m in the fourth quarter of 2012. The adjusted net loss in the fourth quarter of 2013 excluded, among other items, a US$16m pension settlement charge related to a lump-sum payout to terminated employees that lowered the pension obligation by approximately US$80m. The adjusted net loss in the fourth quarter of 2012 excluded, among other items, a US$55m gain from the sale of the corporation's European operations.
"We're pleased to have delivered a fourth consecutive quarter of positive operating results with improved performances in all major businesses," said James S Metcalf, chairman, president and CEO. "Our plan to win is working and we expect to improve upon our results as we capitalise on the increasing opportunity in our end markets."
USG recorded full year 2013 net sales of US$3.6bn, an operating profit of US$258m and a net income of US$47m, with an adjusted net income of US$73m. For the full year of 2012, net sales were US$3.2bn, operating profit was US$73m and net loss was US$126m, with an adjusted net loss of US$124m.
"2013 was a foundational year for USG, however our work is not done," Metcalf said. "We remain committed to keeping our breakeven low and delivering our balance sheet, while seeking organic growth opportunities as we build the USG of the future."
Boral provides first half of financial 2014 trading update
28 January 2014Australia: Boral has announced that it expects net profit after tax (NPAT) before significant items for the first half of financial 2014 to be US$90m, subject to finalisation of an audit review.
The result is underpinned by favourable weather conditions in Australia, strong volumes from major projects, a significant turnaround in the performance of the Building Products division and benefits from prior year restructuring activities. For 2014, the company expects a significant skew of earnings to the first half of the year compared to the second half of the year, due to lower contributions from major projects and reduced contributions from Boral Gypsum. The latter is expected following the move from a 100% owned division to a 50% joint venture, upon completion of the transaction with USG during the second half of 2014.