Gypsum industry news
Etex raises revenue by 28% in 2012
03 April 2013Belgium: 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.
Boral records US$26m loss in first half of 2012-2013
13 February 2013Australia: 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.
Eagle Materials revenue up: Gypsum performance most improved
07 February 2013US: 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.
USG reduces loss to US$126m in 2012
06 February 2013US: 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."
CNBM produces 1.65BnM2 of gypsum board in 2012
05 February 2013China: 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.
Gips nine-month loss rises by 80% to Euro1.28m
25 January 2013Bulgaria: 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.
Eagle Materials gypsum business continues to recover
02 November 2012US: 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.
USG reduces loss by US$86m in Q3
22 October 2012US: USG Corporation has reduced its net loss in the third quarter of 2012 by US$86m, to US$29m from US$115 in the same quarter in 2011.
In August 2012 USG announced it had entered into an agreement to sell its European operations to Knauf. Results from European operations have been reported as discontinued operations for the 2012 and 2011 periods.
The corporation reported a year-on-year rise in its net sales from continuous operations of 9% in the third quarter of 2012, to US$828m from US$763m. Its operating profit from continuing operations for the third quarter of 2012 was US$29m compared to a US$79m operating loss in 2011.
Discontinued or European operations reported net sales of US$27m in the third quarter of 2012 compared to US$29m in 2011. Discontinued operating profit was US$1m in 2012 compared to US$3m.
"The announced sale of our European operations is another great example of USG's Plan to Win. Completion of this sale will allow us to reallocate assets from a lower-growth market to joint ventures supporting higher-growth markets in India, which will allow us to diversify the company's earnings and offset some of the cyclicality in our core businesses," said, president and CEO, James S Metcalf, Chairman. Metcalf added that wallboard demand remains 'significantly' below previous levels.
USG wallboard shipments rose by 14% year-on-year in the third quarter of 2012, to 366Mm2 from 320Mm2 in 2011. Sheetrock brand UltraLight panels accounted for 47% of all USG wallboard shipments in the United States.
Boral’s second half profit hit by slow housing market
22 August 2012Australia: Boral has reported a 59% fall in second-half profit, hit by weak housing construction in Australia and delays in big resource and road projects. Boral, which removed its chief executive in May 2012, declined to give a fiscal forecast for the year ahead in light of uncertain market conditions, but said it would update investors at its annual meeting in November 2012.
Boral's net profit for the six months to June 2012 fell to US$35.7m from US$87m a year earlier, as calculated from full year figures. The building products maker issued profit warnings in April 2012 and June 2012.
"Earnings from our Australian business in the six months to June were hit by very weak housing and non-residential building activity, combined with delays and disruption from sustained rainfall across the east coast. The positive impact of price increases was more than offset by much weaker sales volumes in these markets and by higher costs, including from the wet weather," said Boral's chief executive officer, Ross Batstone.
Overall for the year to 30 June 2012 profit, after tax dropped by 42% to US$106m from US$183m. Sales revenue grew by 5%, to US$5.24bn from US$4.94bn, but this excludes the impact of the acquisition of Lafarge's 50% of Boral's stake in their Asian plasterboard joint-venture.
Boral's Building Products division reported a 11% fall in revenue for wallboard, to US$368m from US$413m. Sales volumes declined year-on-year by 14%. Overall for the division earnings before interest, taxes, depreciation and amortisation (EBITDA) fell by 46% to US$74.2m from US$138m. The company attributed the decline to the fall in Australian housing which began in year to 30 June 2011 but fell rapidly again in the second half of the 2012 fiscal year, and wet weather. Price increases, which averaged around 2-3% were insufficient to offset the significant impact of lower volumes.
Plasterboard Asia reported a revenue of US$317m since 9 December 2011, when Boral acquired the rest of the joint-venture from Lafarge. Revenues in Indonesia, Thailand and South Korea grew whilst income was below expectations in China, due to a slow-down in construction activity there.
Wallboard capacity increased throughout the year in China with the acquisition of a 35MM2 plant in Shandong and on-going upgrade work increasing capacity from 13MM2 to 43MM2 in Chongqing. In Indonesia a 30MM2 capacity upgrade is currently scheduled in completion for early 2013 and in Vietnam, a 30MM2 upgrade in Ho Chi Minh City plant is progessing in line with expectations but with no given completion date.
For its 2013 outlook Boral expects continued weak housing demand, particularly for the first half of the 2013 fiscal year, to prove challenging for its Building Products division. It added that further interest rate reductions and/or improved consumer 'sentiment' are required for demand to lift in the six months ending June 2013. In Asia, continued growth in construction activity is expected together with more penetration by wallboard. While the residential market remains subdued in China, Boral's plant in Shandong will see growth of sales volumes in new high-end markets in Beijing, Tianjing and Shandong.
Eagle Materials revenue up by 29% in Q1
02 August 2012US: Eagle Materials Inc has reported a 29% rise in total revenue for the first quarter of the 2013 fiscal year which ended on 30 June 2012. The North American building materials producer noted revenue of US$154m for the quarter, up from US$120m in the same period in 2011.
Eagle's gypsum wallboard sector reported a 36% increase in revenue to US$70.2m from US$51.3 in 2011. Improved wallboard net sales prices were the primary driver of the quarterly earnings increase in the company's gypsum wallboard and paperboard division. Sales volumes increased by 11% to 42.5MM2 from 38.3MM2.