Gypsum industry news

Belgium: ETEX recorded consolidated net sales of Euro2.97bn in 2021, up by 14% year-on-year from Euro2.62bn in 2020. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 12% to Euro522m from Euro468m, while its profit for the year dropped by 1.4% to Euro198m from Euro201m. The group’s building performance recorded like-for-like sales growth of 21% from 2020 levels and of 15% from 2019 levels. Its gypsum wallboard volumes grew year-on-year, while strong demand in all regions except South Africa impacted some export businesses through supply chain issues and increased shipping costs. The company adapted its prices to offset a sharp rise in raw material and energy cost prices.

During the year, ETEX acquired a top-three Australian gypsum wallboard producer and completed its rebranding as Siniat. It also diversified with the launch of a fourth group division, new ways, which includes light steel framing production operations.

China: BNBM’s operating income grew by 25% to US$3.33bn in 2021 from US$2.66bn in 2020. Its net profit rose by 23% to US$554m from US$451m. Its production and sales volumes of gypsum wallboard increased by 19% to 2.43Bnm² and 18% to 2.38Bnm² respectively. It reported a gypsum wallboard production capacity utilisation rate of 78%. The group added that data from the Gypsum Building Materials Branch of China Building Materials Federation showed that national wallboard production capacity was 4.90Bnm²/yr and that production and sales were 3.51Bnm² in 2021.

Parent company CNBM separately reported that the group raised its average wallboard selling prices by 7%. It said it put up its prices in the reporting period due to high prices of coal, gypsum, paper and other raw materials. Internationally, the group said that a new wallboard plant in Tanzania had started operation in 2021 and that a new plant in Uzbekistan is still being built.

Germany: Wacker’s Silicones division’s sales grew by 16% year-on-year to Euro2.60bn in 2021 from Euro2.24bn in 2020. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 43% to Euro553m from Euro388m. This was attributed to higher selling prices and volumes. Overall the group’s sales increased by 32% to Euro6.21bn and its EBITDA more than doubled to Euro154bn.

Following ‘robust’ demand across all business divisions in the first two months of 2022, chief executive officer Christian Hartel said, “We expect our chemical business to perform well during the rest of the year, and anticipate higher prices, volume growth and positive product-mix effects in this segment.” He added that the direct impact upon sales volumes from the war in Ukraine upon the business would be limited as Commonwealth of Independent States sales represented less than 2% of the group’s sales. However the rise in gas and electricity prices was recognised as a concern. The group added that it had benefited at the start of 2022 from the raw materials and energy it had procured in 2021 under more favourable conditions.

France: Saint-Gobain’s sales grew by 15.8% year-on-year to Euro44.2bn in 2021 from Euro38.1bn in 2020. Its earnings before taxation, interest, depreciation and amortisation (EBTIDA) rose by 41% to Euro6.20bn from Euro4.42bn. Sales and earnings increased by 4% and 27% compared to 2019 levels before the coronavirus pandemic started. Sales revenue and operation income was reported up in all geographical regions. In North America the group noted that the integration of Continental Building Products had boosted its position in the US gypsum wallboard market and helped it to tap new sales channels.

“The records achieved in 2021 confirm that the group has entered a new post-transformation trajectory in terms of performance: market-beating sales growth, record earnings and margins, a high level of free cash flow generation that has more than doubled compared to previous years, and strong value creation for our shareholders thanks to strict capital allocation and the determined execution of our portfolio optimisation,” said Benoit Bazin, the chief executive officer of Saint-Gobain.

The group completed or signed 37 acquisitions in 2021, including Chryso and GCP Applied Technologies (GCP), marking its rapid expansion into the construction chemicals market. In November 2021 On November 15, 2021, Saint-Gobain said that it had acquired a gypsum plant in Nairobi, Kenya. It will be the company’s first production site in Kenya, where it will also invest in a construction chemicals production line.

New Zealand: Revenue from Fletcher Building’s Building Products division rose by 9% year-on-year to US$514m in the first half to 31 December 2021 from US$471m in the same period in 2020. Earnings before interest and taxation (EBIT) fell by 6% to US$68.6m from US$64.6m. The building materials producer, distributor and construction company blamed the declining earnings on a coronavirus-related lockdown in the summer of 2021, although it noted improved performance in the following quarter. Overall group revenue and earnings grew in the reporting period.

“With improved operational performance and cost disciplines now embedded across the business, we were able to deliver a strong performance. This was despite the first quarter being heavily impacted by the up to five week-long Covid-19 stringent lockdown in New Zealand and local lockdowns in Australia which impacted EBIT,” said Fletcher Building’s chief executive officer Ross Taylor.

Fletcher Building’s subsidiary Winstone Wallboards is currently building a new 10Mm²/yr gypsum wallboard plant at Tauriko near Auckland. Commissioning is planned for the group’s 2023 financial year that starts in June 2023. Once completed the company says it will have a total national wallboard production capacity of 40Mm²/yr.

US: GMS’ net sales rose by 36% year-on-year to US$2.19bn in the six months to 31 October 2021 from US$1.62bn in the same period in 2020. Its adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) grew by 68% to US$278m from US$166m. Wallboard sales represented 37% of the net sales total at US$805m, a decrease in share from 41% at US$659m in the same period in 2020.

“Supply chain dynamics have led to all-time high levels of product inflation, which have been the principal driver of both sales growth and incremental profitability. That said, our relentless focus on customer service and the solid execution of our strategic priorities have enabled us to capture the benefits of both this heightened product inflation across our portfolio as well as continued strength in the residential market,” said John C Turner Jr, president and chief executive officer of GMS.

GMS distributes gypsum wallboard, ceiling, steel framing and complementary construction products in the US

Japan: Chiyoda Ute’s revenue remained stable at US$165m in the first nine months of its financial year to 31 December 2021. Its net profit grew by 53% year-on-year to US$5.37m from US$3.52m in the same period in 2020. The gypsum wallboard producer reported that domestic house building had grown from March to December 2021 in tandem with a relaxation in coronavirus health measures from September 2021. It said that national gypsum wallboard shipping volumes grew by 2.4% to 344Mm² in the nine months to 31 December 2021. It added that due to the capital and business alliance it started with Knauf Group in January 2020 it viewed its future prospects as ‘competitive.’ In late 2019 the Germany-based construction materials company increased its shareholding in Chiyoda Ute to 45% from 26%.

US: Eagle Materials’ wallboard sales volumes fell by 4% year-on-year to 64.6Mm² in the third quarter of its financial year to 31 December 2021 from 67.5Mm² in the same period in 2020. The company blamed this on ongoing homebuilder supply chain difficulties and reported that its “order pace improved during the quarter.” Despite this revenue and earnings from its Light Materials division grew in the quarter.

For the nine months to 31 December 2021 the company’s Light Materials division revenue grew by 25% year-on-year to US$584m from US$469m in the same period in 2020. Gypsum wallboard sales volumes rose by 2% to 204Mm² from 200Mm². Earnings from the division increased by 40% to US$197m from US$140m. Overall company revenue grew by 13% to US$1.45bn from US$1.28bn.

Switzerland: Sika’s sales grew by 17.3% year-on-year to Euro8.96bn in 2021 despite the Covid-19 pandemic and procurement delays for raw materials. Sales increased in all regions with notable growth reported in the Middle East, Eastern Europe, the UK, the US, Latin America and China. The group said that in the Americas a strategic focus on business activities in metropolitan areas, major infrastructure projects and cross-selling helped it. Sika is also currently in the process of buying MBCC Group, a construction chemicals suppler previously known as BASF Construction Chemicals, for Euro2.8bn.

"2021 was expected to be a challenging year and it proved to be a very successful one for Sika. We are benefiting from a number of growth platforms and are in an ideal position to achieve long-term success,” said chief executive officer Thomas Hasler. “We have solutions in place for all the development stages of construction markets, and government supported investment programs running into the billions will provide further impetus for our business.

US: GMS’s consolidates sales were US$2.19bn in the first half of 2021, up by 36% year-on-year from US$1.62bn in the first half of 2020. Its gypsum wallboard sales constituted 37% of its total sales at US$805m, up by 22% from US$659m. The company’s earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 70% to US$265m from US$156m, while its gross profit rose by 35% to US$708m from US$526m.

President and chief executive officer John Turner said “Net sales again topped US$1bn, with record levels of net income and adjusted EBITDA. Supply chain dynamics have led to all-time high levels of product inflation, which have been the principal driver of both sales growth and incremental profitability. He added “That said, our relentless focus on customer service and the solid execution of our strategic priorities have enabled us to capture the benefits of both this heightened product inflation across our portfolio as well as continued strength in the residential market.”

Turner concluded “While commercial activity remains well below pre-Covid levels, we were pleased to see certain commercial projects that were previously on hold receive approvals to move forward. With other positive signs also emerging, we believe that we are very well positioned as we head into the next calendar year to benefit from an eventual commercial construction recovery.”