Gypsum industry news

France: Saint-Gobain’s says its sales for June 2020 rose by 3.7% on a like-for-like basis as markets recovered from the effects of the coronavirus pandemic. Its sales fell by 12.3% year-on-year on a like-for-like basis to Euro17.8bn in the first half of 2020 from Euro21.7bn in the same period in 2019. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) decreased by 32.4% to Euro1.64bn from Euro2.42bn.

“In a macroeconomic and health environment which remains affected by uncertainties, our earnings growth in June and outlook for the third quarter suggest that our operating income for second-half 2020 will improve significantly on first-half 2020,” said Pierre-André de Chalendar, chairman and chief executive officer (CEO) of Saint-Gobain. He added that the group’s portfolio of products, including those in energy-efficiency and renovation markets, positioned it to benefit from national and European stimulus plans supporting energy saving initiatives.

The group noted a 19.2% year-on-year sales decrease in the second quarter of 2020 due to the coronavirus pandemic, with very different situations between countries and markets. Most of its business segments reported growth in June 2020 with the exception of Asia-Pacific, where the Indian market held the division back. Gypsum sales helped deliver ‘robust growth’ in the US and Canada in June 2020. Strong growth in gypsum was reported in Brazil for the first half of 2020. Chinese sales in gypsum benefitted in the second quarter of 2020 from a new plaster plant, which originally opened in 2019, reaching full production capacity. The group’s High Performance Solutions division reported positive trends from its external thermal insulation solutions (ETICS) products in the second quarter of 2020.

US: Eagle Materials’ sales from its Light Materials division rose slightly to US$153m in the first quarter of its financial year to 30 June 2020. Gypsum wallboard sales revenue growth offset declines in paperboard sales. However, earnings fell by 8% to US$44m. Gypsum wallboard sales grew by 7% to 65Mm2. Overall, the group’s revenue and earnings rose.

“While we are very pleased with our first-quarter performance, we recognise a high level of uncertainty persists in our markets and the overall economy: despite the decline in jobless claims from the March peak, total unemployment remains historically high; state and local governments face ongoing revenue pressure, which could have the potential to constrain infrastructure budgets; and, in some geographic areas important to our business, Covid-19 case numbers continue to escalate,” said Michael Haack, president and chief executive officer (CEO).
The group announced plans in May 2019 to split its Heavy Materials and Light Materials divisions into two independent businesses. However, it says the timing remains ‘uncertain.’

US: The Bureau of Land Management has approved American Gypsum’s proposal to expand its gypsum mine at Eagle, Colorado by around 40 hectares. The current quarry has been in operation since 1984. The mine and associated Eagle gypsum wallboard plant near Gypsum produce around 60Mm2/yr of wallboard and employ nearly 100 people. American Gypsum is the fifth largest producer of gypsum wallboard in North America, operating four wallboard plants.

US: GMS’ net sales from its wallboard products rose by 5% year-on-year to US$1.33bn in the financial year to 30 April 2020 from US$1.27bn in the same period in 2019. Its overall sales grew by 4% to US$3.24bn from US$3.12bn. Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) increased slightly to US$300m. Wallboard sales were stable in the fourth quarter of its reporting year as coronavrius-related market declines in late March and April 2020 caused total company sales to decrease in the period.

“Through mid-March 2020 we experienced favourable end-market trends and generated robust volume growth. Even as disruptions from COVID-19 began to escalate in the second half of March 2020, construction and building products distribution were deemed essential in the majority of our markets, which enabled us to keep most of our locations open. However, demand weakened significantly in late March 2020 and in April 2020 as customers delayed orders and building projects were paused due to mandated shutdowns in certain markets or as they focused on responding to the effects of COVID-19 on their businesses,” said John C Turner, Jr, president and chief executive officer of GMS.

US: American Gypsum has been chosen as a featured manufacturer with BSD SpecLink, a specification database designed to help architects hasten editing tasks and reduce specification production time. The gypsum wallboard producer recently added their products and specifications to the SpecLink system to make it easier for architects to incorporate American Gypsum products into their projects.

US: CatchMark Timber Trust and its Triple T joint venture have amended their wood supply agreement with Georgia-Pacific to achieve “market-based pricing on timber sales.” Under the amended deal, Triple T also will be able to increase reimbursement for extended haul distances, sell timber to other third parties and expand its ability to sell large timberland parcels to third party buyers. The supply agreement between Triple T and Georgia-Pacific has also been extended by two years from 2029 to 2031, with optimised harvest volume obligations to enhance and preserve long-term asset value. Triple T has paid Georgia-Pacific US$145m to make these changes.

CatchMark invests in 1.1 million acres of East Texas timberlands through Triple T and acts as the general partner of the venture on behalf of a consortium of institutional investors. Georgia-Pacific produces paper-based consumer products and building materials, including gypsum wallboard.

France: Saint-Gobain says that its overall group activity fell to 60% of 2019 levels in April 2020 due to the effects of the coronavirus pandemic. Since then its level of activity surpassed 80% ‘at comparable working days, with large variations by market and country,’ according to Regulatory News Service. The group expects a ‘challenging’ second quarter 2020 before a recovery in the second half of the year. It continues to preserve cash and reduce costs.

In Europe the group reported that, by the end of May 2020, Nordic countries had almost reached 2019 levels. Germany and Eastern Europe were still seeing activity levels below those of 2019. The UK has seen activity levels progress by around 10%/week since a low point in mid-April 2020 when activity were at a ‘virtual standstill’, reaching around 70% of 2019 levels in the last week of May 2020.

In the group’s Middle East & Africa region activity levels surpassed 50% of 2019 levels since a low in mid-April 2020. In France, activity in distribution came close to the 2019 level in the last week of May 2020, but with big differences by region and brand. Spain and Italy are picking up gradually, but remain below the average level of the region. The Netherlands remains close to a normal level of activity, while the Middle East and Africa remain impacted to varying degrees.

North America has reported a ‘contrasting situation state by state,’ but has shown improvement since the low point of mid-April 2020. Activity in May 2020 moved closer to 2019 levels due to ‘significant’ volumes in exterior solutions and a rebound in gypsum volumes. In Latin America, despite the health situation remaining difficult, activity is picking up week after week, from 40% in mid-April 2020 to around 80% in May 2020 with a ramp-up in Brazil.

In Asia-Pacific sales have now reached 2019 levels following the gradual restart of all its production sites in China in March 2020. India remains ‘severely’ disrupted with the restart dependent on the relaxing of confinement measures. The situation is varied across South-East Asia with a rebound in Vietnam where activity has surpassed 2019 levels, but disruptions still relatively significant in Thailand and neighbouring countries.

US: The Gypsum Association has elected Gregory McCown as the chair of its board of directors for 2020 – 2021. McCown is the Regional Manufacturing Manager – Eastern US for CertainTeed Gypsum. Other appointments include National Gypsum’s Craig Robertson as vice-chair, Pabco Gypsum’s Emil Kopilovich, as treasurer and the Gypsum Association's Stephen H Meima continues as the secretary. USG’s Albert R Zucco is the past chair of the board. All terms are for one year and are effective from 1 May 2020.

US: Colin Hanson, one of the founders of gypsum wallboard moisture measurement expert Sensortech Systems, retired from his position of president of the company on 14 May 2020. A native of Southport in the north west of England, Colin Hanson established Sensortech Systems in Oxnard, California, along with Logan Mosteller and Bob Blankenship, in 1983. He had previously worked for leading moisture measurement equipment manufacturers in the UK and US and in the oil exploration sector in the UK.

Hanson was the pioneering developer behind Sensortech’s resonant frequency (RF) radio approach to moisture measurement. This offered higher accuracy, and hence control, to wallboard manufacturers, as it was more directly dependent on moisture content than the established techniques based on power-loss measurements. The RF approach has since risen to become the dominant approach to wallboard moisture measurement worldwide.

The company’s first product based on the RF approach was the ST-1100 moisture sensor range, which was replaced by the ST-2200 in 1992 and, subsequently, the ST-3300 range in 2018. Sensortech also produces the Instantaneous Moisture Profiling System (IMPS), which analyses moisture across the full width of the board, and has an extensive offering of near infra-red sensors. It most recently developed the Kiln Jam Detector for use inside board dryers.

As Sensortech grew in the 1980s and 1990s, Hanson took over the shareholdings of the other two directors. He became sole owner of the company in 1996. He sold Sensortech Systems to KPM Analytics on 14 May 2019, remaining as president until his retirement a year later. He will remain on hand in an advisory capacity and will continue to offer his insights and expertise to the company, with a focus on the development of existing and new products.

Speaking upon the sale of Sensortech to KPM, Hanson said, “There is a depth of talent within Sensortech, supplemented by KPM, that will provide a seamless transition to a successful future. KPM is putting resources into growing Sensortech, which is fantastic. The company has a development queue representing years of research but there are opportunities to accelerate that with KPM.”

Ron Geis, KPM Analytics’ President, has taken over the role of president of Sensortech Systems.

US: Gypsum wallboard distributor Foundation Building Materials reports that sales of wallboard fell slightly to US$202m in the first quarter of 2020. This was attributed to disruption caused by the coronavirus outbreak. Overall its sales across all business lines rose, in part due to an additional business day in the reporting quarter compared to the same period in 2019. It noted lower sales growth in states with stronger lockdown measures, including Washington, California, Michigan, New Jersey and Pennsylvania. Overall sales in April 2020 were reported as being 20% down year-on-year.