Gypsum industry news
USG Reports on second quarter of 2017
26 July 2017US: USG Corporation has reported its financial results for the second quarter of 2017, showing a double digit increase in wallboard sales despite a competitive environment. "Our US wallboard shipments in the second quarter of 2017 were up double-digits and were at the highest levels we have seen since 2008," said Jennifer F Scanlon, President and CEO. "However, rising commodity costs and a competitive pricing environment weighed on our operating margins and second quarter performance. We are taking actions to address inflation and will continue our strategic investment in advanced manufacturing to deliver profitable growth."
On a consolidated basis in the second quarter of 2017, USG's net sales were US$811m, compared to US$769m in the second quarter of 2016. Operating profit decreased to US$96m from US$122m, while adjusted operating profit decreased to US$117m from US$127m in the second quarter of 2017 compared to the second quarter of 2016. USG generated US$36m compared to US$74m in the second quarter of 2016.
The corporation's gypsum segment generated US$90m of operating profit in the second quarter of 2017. On an adjusted basis, operating profit of US$95m in the gypsum segment decreased by US$6m compared to the second quarter of 2016. US wallboard volumes increased by 10% in the second quarter of 2017. US wallboard prices decreased by approximately 1% due primarily to competitive pricing pressures and the impact of transitioning certain wallboard volumes from wholly-owned distribution at L&W Supply, which was sold in 2016, to independent distribution. USG's US wallboard production costs increased by US$8m due almost exclusively to rising waste paper costs.
National Gypsum upgrades Oxford paper plant
06 July 2017US: National Gypsum is upgrading its paper plant in Oxford, Alabama. The work includes replacing a boiler at the site first installed in 1950s, according to the Anniston Star newspaper. The investment is intended to reduce operational costs and increase energy efficiency. Paper produced at the plant is used in the manufacture of gypsum wallboard at the company's other plants. No value for the upgrade has been disclosed.
US: Taishan Gypsum and its owner China National Building Material Company (CNBM) say they have settled with Lennar Homes, LLC and US Home Corporation in one of its lawsuits about alleged defective gypsum wallboard. Fellow subsidiary Beijing New Building Material (BNBM) and Taishan Gypsum have agreed to pay the companies concerned US$0.5m and US$6m respectively in instalments by 31 July 2017. In return the plaintiffs have agreed to drop all claims and allegations within three days of receipt of the payment.
US: National Gypsum has published 17 health product declarations (HPD) for a range of products that cover nearly all of its interior wall systems.
"At National Gypsum, we recognize that sustainable building design isn't just a trend but has become the preferred business practice for top architects and developers in the country," said John Mixson, vice president of sales and marketing.
The HPDs cover all product brands and 40 products. They include: Gold Bond Brand; Fire-Shield Type X; Fire-Shield Type C; XP Fire-Shield Type X; XP Fire-Shield Type C; High Strength Fire-Shield LITE; High Strength Fire-Shield LITE 30; SoundBreak XP Fire-Shield; eXP Interior Extreme; eXP Tile Backer; eXP Sheathing; eXP Shaftliner; DEXcell Brand Glass Mat Roof Board; DEXcell Brand Cement Board; and PermaBase Brand Cement Board.
USG wins two manufacturing leadership awards
15 June 2017US: USG has won two manufacturing awards from Frost & Sullivan's Manufacturing Leadership Council. The building materials manufacturer earned an award in the 'Improving Operational Excellence' category for its Lean Six Sigma (LSS) programme achievements and its Mexican subsidiary, USG Mexico, earned an award in the category of 'Supply Chain Leadership' for the optimisation of its import logistics and distribution programs. The Manufacturing Leadership Awards recognise manufacturing organisations and individual leaders shaping the future of global manufacturing.
"USG is committed to manufacturing excellence and it is an honour to receive these prestigious Manufacturing Leadership Awards," said Dom Dannessa, USG's Executive Vice President and Chief Operations and Innovation Officer. "Investments in Lean Six Sigma and our Supply Chain have allowed us to better anticipate our customers' needs so that we can continue to provide them with superior solutions."
USG says that its LSS programmes have enabled it to optimise production and pricing, cut transportation costs and reduce excess inventory, leading to more than US$250m in operational savings and significantly improving team productivity. USG Mexico meanwhile invested in local distribution centres to increase its product range in the region.
Valerie Gervais appointed Senior Vice President of Human Resources for Saint-Gobain in North America
19 May 2017US: Valerie Gervais has been appointed as the Senior Vice President of Human Resources for Saint-Gobain Corporation, the group's holding company in North America. She will take a position on the group's North American Executive Committee and will report directly to Tom Kinisky, president and chief executive officer (CEO) of Saint-Gobain Corporation.
Gervais will be relocating to Saint-Gobain's North American headquarters in Malvern, Pennsylvania from Paris, France where she was responsible for human resources for Saint-Gobain Glass US and human resources for Saint-Gobain ADFORS and Saint-Gobain Performance Plastics within the Innovative Materials Sector globally. In addition to her new position in North America, she will continue to support the global Performance Plastics business, reporting to James Thomson, Vice President of Human Resources for Saint-Gobain's Innovative Materials Sector.
Gervais started working for Saint-Gobain in 2010 as Vice President of Development and Recruitment for Saint-Gobain in North America. Prior to that, Gervais held the positions of Director of Global Talent Management and Director of Leadership & Organizational Development for GlaxoSmithKline. She holds a master's degree in business from the Institute of Management in Rennes, France.
US: Eagle Materials' sales revenue rose by 6% year-on-year to US$1.21bn in its financial year to 31 March 2017 from US$1.14bn in the same period in 2016. The building materials producer completed its acquisition of Cemex's Fairborn cement plant in Ohio with associated assets in February 2017 and this contributed to its cash flow in the period. The group's gypsum wallboard sales volumes rose by 4% to 231m3 from 222m3 despite a fall in volumes in the fourth quarter.
Guillermo Gutierrez appointed Vice President of Investor Relations at International Paper
18 May 2017US: Guillermo Gutierrez has been appointed the Vice President of Investor Relations at International Paper with effect from 1 July 2017. He will report to Glenn Landau, the senior vice president and chief financial officer. He succeeds Jay Royalty, who has been named vice president and general manager, Foodservice.
Gutierrez, aged 45 years, joined International Paper in 1994 and has held roles of increasing responsibility in finance, sales, marketing, supply chain and general management. He currently serves as Regional Managing Director, EMEA Packaging. Gutierrez earned a Bachelors degree in finance from Tulane University in 1994 and an MBA from the University of Miami in 2001. Guillermo and his family will relocate from Madrid, Spain to Memphis, US.
Canada: The government has opened its Drywall Support Program for applications until the end of May 2017. This program provides drywall contractors and builders in Western and Northern Canada with compensation for elevated drywall costs due to anti-dumping duties imposed on imported drywall from the US, according to Canadian Newswire. The initiative is also intended to homeowners in the Regional Municipality of Wood Buffalo (RMWB) whose homes were severely damaged or destroyed by the 2016 wildfires and are now facing higher rebuilding costs. The US$9m scheme will be administered by Western Economic Diversification Canada and the Canadian Northern Economic Development Agency.
Thomas Kinisky appointed president and chief executive officer of Saint-Gobain in North America
02 May 2017US: Thomas Kinisky has been appointed as the president and chief executive officer (CEO) of Saint-Gobain Corporation, Saint-Gobain's holding company in North America. He has also been appointed as the Senior Vice President for Saint-Gobain and is a member of the company's Global Management Committee. Kinisky assumed the position earlier in 2017 when he succeeded John Crowe. Crowe was also the president and CEO of Saint-Gobain's subsidiary CertainTeed. He has been succeeded in these roles by Benoit Bazin, who will also continue to serve as the global President of the Construction Products Sector and Senior Vice President for Saint-Gobain.
Kinisky joined Norton Company in 1989 before its acquisition by Saint-Gobain in 1990. He spent over a decade working in research and development in various roles, including Vice President of Technology and New Business Development for the company's Abrasives Division, before assuming the role as president for Saint-Gobain Crystals in 2002 and Saint-Gobain Performance Plastics in 2008.
He holds a Bachelor of Science in chemistry from Pace University and a Master of Science in materials science from New York University (Polytechnic University). He has authored technical publications and holds five US patents.