Gypsum industry news

France: Saint-Gobain has reported that its sales fell by 4.8% to Euro9.67bn for the first quarter of 2013, down from Euro10.2bn in the same period in 2012. The France-based building materials multinational blamed the decline on bad weather, fewer working days in the period compared to the previous year and the continued economic slowdown in Europe.

"We anticipate a gradual recovery in the group's trading over the next few quarters and confirm our target of a recovery in operating income in the second half after having bottomed out between mid-2012 and mid-2013," said chairman and chief executive, Pierre-André de Chalendar.

Sant-Gobain's Construction Products Interior Solutions sector, which includes gypsum wallboard manufacturing, reported a 4.4% drop in like-for-like sales in the first quarter of 2013, mainly due to a drop in volumes in western Europe. However, Asia and emerging countries reported a 8.8% rise in sales.

By region across all business sectors, in France Sant-Gobain reported a 8.8% fall in sales to Euro2.80bn in the first quarter of 2013 from Euro2.90bn in the same quarter in 2012. Other western European countries saw a 9.5% fall in sales to Euro3.80bn from Euro4.18bn. North America reported a rise of 3.1% to Euro1.56bn from Euro1.52bn. Emerging countries, Asia and Pacific saw a 1.5% rise to Euro2.03bn from Euro1.94bn. In this territory Sant-Gobain singled out 5.4% sales growth in Latin America for offsetting declines in China and South Korea.

US: USG Corporation (USGC) reported first quarter 2013 net sales of US$814m on 24 April 2013, a rise of 4% compared to the first quarter of 2012, when it had net sales of US$783m. USG's first quarter 2013 operating profit was US$49m compared to a US$24m a year earlier. Its first quarter 2013 net income was US$2m, compared to a US$27m net loss in the first quarter 
of 2012.

"We are pleased to report our first quarter of net income in more than five years," said James S Metcalf, Chairman, President and CEO. "All segments showed improved results in the period and our commitment to innovation and lowering our break-even are evident in our results."

The corporation's adjusted net income was US$1m in the first quarter of 2013, which compares to an adjusted net loss of US$27m in the first quarter of 2012. The adjusted net income for the first quarter of 2013 excludes US$2m of restructuring charges and a US$3m benefit from a change in tax law. The adjusted net income for the first quarter of 2012 excludes US$2m of restructuring charges and US$2m of income from discontinued operations.

"Achieving positive net income in the first quarter is an important milestone as we emerge from the most significant downturn in our company's history, but there is more work to be done," Metcalf said. "We will continue to execute 'Our Plan to Win' as the recovery continues in our core markets."

Saudi Arabia: National Gypsum Company has reported that its net income for the first quarter of 2013 fell year-on-year by 31.5% to US$1.72m from US$2.50m in the same period in 2012. The wallboard producer attributed the decrease in net income to increased competition.

National Gypsum Company noted that its gross profit for the first quarter of 2013 fell by 6% to US$2.25m from US$2.39m. Operational income fell by 8.84% to US$1.65m from US$1.81m

Belgium: Etex Group reports that its revenue rose by 38% to Euro3.17bn in 2012 compared to Euro2.30bn in 2011. The building materials group said that the stable revenue reflected some volume losses with sustained margins.

"Despite the economic circumstances, Etex performed well in 2012. The free cash flow generated will enable us to continue to invest substantially in promising segments," commented Fons Peeters, CEO of Etex.

Etex's operating income rose by 65% to Euro290m in 2012 from Euro176m in 2011. Its profit rose by 73% to Euro152m from Euro88m.

In 2012 Siniat's European gypsum business was integrated within Etex, making the group's Cladding and Building Boards the biggest of Etex's four business segments. This segment saw its revenue rise from Euro614m in 2011 to Euro1.46bn in 2012.

By region for its gypsum business, Etex noted in its annual report that Western Europe was affected by difficult macro-economic conditions, particularly in France. In Eastern Europe, Poland and Ukraine saw stable market demand and Romania and the Balkan states had investment to support growth. Siniat Latin America showed 'good' progress in 2012 with investments in Brazil and Peru on the way.

Australia: Building materials supplier Boral has reported a loss of US$25.1m for the first half of its 2012-2013 fiscal year, due to a sustained weakness in the Australian and US housing markets. It recorded a profit of US$157m in the same period in 2011-2012.

For the half-year ending on 31 December 2012, Boral reported a sales revenue of US$2.86bn, 14% above the previous year. Earnings before interest and tax (EBIT) (before significant items) increased by 3% to US$116m. Both figures benefitted from acquisitions that the company made. Profits were hit by US$79.6m impairment charges tied to the suspension of cement production at Waurn Ponds, Victoria and first half restructuring and redundancy costs.

"In Australia, Construction Materials delivered a solid 25% improvement in EBIT, but Building Products reported a very disappointing US$18.6m first half loss, following an US$11.4m loss in the second half of last year," said Boral's CEO and Managing Director Bob Kane.

He added that in the newly combined Boral Gypsum division, Australian Plasterboard was also significantly impacted by lower volumes and higher operational costs, reporting a 45% decline in EBIT. This decline was offset by a US$19.6m increase in reported earnings from Asia as a result of the acquisition of the remaining 50% interest of Boral Gypsum Asia in the 2012 financial year.

US: The US-based building materials provider Eagle Materials has reported financial results for the third quarter of the 2013 fiscal year, which ended on 31 December 2012. These showed that its revenue was up by 33% compared to the same period of the prior fiscal year. Earnings per share were up by 429% year-on-year.

Eagle's third quarter sales volumes improved across all business lines, with sales prices improving in all but one of it business lines. Its gypsum wallboard segment experienced the most significant improvement, with an increase in average net sales prices of 27% as compared with the same quarter of the prior fiscal year.

Eagle's Gypsum Wallboard and Paperboard division's third quarter operating earnings of US$24.8m were up by 362% compared to the same quarter of the 2012 fiscal year. Higher wallboard average net sales prices, higher gypsum wallboard and gypsum paperboard sales volumes and lower recycled paper input costs were the primary driver of the quarterly earnings increase.

Gypsum wallboard and paperboard revenues for the third quarter were US$100.3m, a 37% increase from the same quarter a year ago. The revenue increase reflects primarily higher wallboard average net sales prices and sales volumes. The average gypsum wallboard net sales price for the third quarter was US$120.55/1000ft2, 27% greater than the same quarter a year ago. Wallboard sales volume for the quarter of 519Mft2 represents a 23% year-on-year.

US: USG Corporation (USG) has reported its results for the fourth quarter of 2012 and for the year as a whole. These results showed that sales had increased by 12% to US$815m in the final quarter of the year, but that USG also made an operating loss of US$8m. This, however, was lower than the US$43m that it lost in the final quarter of 2011. The group's adjusted operating profit was US$5m, versus a US$38m adjusted operating loss in the 2011 quarter, but it made a net loss of US$13m. This compares favourably to the 2011 quarter, when it made a loss of US$100m.

In terms of sales, its US gypsum wallboard shipments came to 1.22Bnft² against 1.09Bnft² in the 2011 quarter. The average price was US$132.26/1000ft² ­up from US$112.59/1000ft² in the same period of 2011. USG also announced that its SHEETROCK Brand UltraLight Panels accounted for 49% of all of its US wallboard shipments for the period.

The Corporation recorded full year 2012 net sales from continuing operations of US$3.2bn, an operating profit from continuing operations of US$73m and a net loss of US$126m. For the full year 2011, net sales from continuing operations were US$2.9bn, the operating loss from continuing operations was US$206m and its net loss was US$390m.

"Our wallboard results were the strongest we have seen in over three years, and we achieved our fourth consecutive quarter of positive adjusted operating profit," said James S Metcalf, Chairman, President and CEO. "The results show that commercial markets remain choppy, but we continue to see signs of a housing recovery."

China: China National Building Material Group (CNBM) produced 1.65BnM² of gypsum board in 2012. The Chinese state-owned building materials manufacturer reported that its operations revenue in 2012 grew by 14% year-on-year to US$35.5bn. CNBM saw its profit reach US$1.81bn, while its net profit for the year hit US$1.38bn. As the end of 2012, CMBM had US$46bn in total assets, 38% more than at the end of 2011.

Bulgaria: Bulgarian gypsum producer Gips has reported that its net loss in the first nine months of 2012 has increased by 80% to Euro1.28m from Euro0.71m in the same period in 2011. The company's revenue rose by 35.7% to Euro4.35m in the same period, according to a bourse filing. Gips, Bulgaria's sole producer of natural gypsum, was set up in 1965. The company has absorbed a total of Euro11.2m in investments since it was privatised in 2006.

US: Eagle Materials has reported a rise in revenue of 22% to US$165m for the quarter that ended on 30 September 2012. Previously the company reported $135m for the same period in 2011. Eagle also reported a rise in net earnings of 66% to US$18m in the second quarter of 2012 from US$6.03m in 2011.

The North American building materials producer's Gypsum Wallboard business benefited in the quarter from higher wallboard average net sales prices and higher gypsum wallboard sales volumes. Revenue for the Gypsum Wallboard business increased by 34% to US$77.3m from US$51m. Operating earnings increased to US$16.5m from a loss of US$2.54m in the same quarter in 2011. Wallboard sales volumes increased by 24% to 500MMSF from 403MMSF.

In September 2012 Eagle entered into a definitive agreement with Lafarge North America to purchase Lafarge's Sugar Creek, Missouri and Tulsa, Oklahoma cement plants, as well as related assets, for its cement business. The purchase price was US$446m. The acquisition is expected to close by December 2012.