Gypsum industry news
Eagle Materials revenue up by 5% to US$933m in first nine months of 2017 financial year
26 January 2017US: Eagle Materials revenue has risen by 5% year-on-year to US$933m in the first nine months of its financial year to 31 March 2017 from US$891m in the same period in the previous year. Its net earnings rose by 43% to US$162m from US$113m. Sales from its cement division rose by 7% to US$359m from US$335m. However, sales volumes fell slightly to 3.89Mt. Sales from its gypsum wallboard and paperboard division grew by 7% to US$440m from US$411m. Sales volumes of gypsum wallboard rose by 7% to 175Mm2 from 164Mm2.
Gypsum Association revises technical documents
19 January 2017US: The Gypsum Association (GA) has released revisions to five of its technical documents to update them with current best practice. These include: GA-220-2016 Gypsum Board Winter Related Installation Recommendations; GA-223-2016 Gypsum Panel Products, Types, Uses, and Standards; GA-226-2016 Application of Gypsum Board to Form Curved Surface; GA-234-2016 Control Joints for Fire Resistance Rated Systems; and GA-338-2016 Guidelines for Prevention of Mold Growth on Gypsum Board.
"Regular review and revision of GA documents is a key component of the association's technical services mandate and the GA's Building Code and Technical Committee (BCTC) has made a three-to five-year revision cycle for all documents a high priority," said GA Director of Technical Services Michael Schmeida.
All the documents are available for free via the GA.
Canada: The Canadian International Trade Tribunal has ruled that gypsum wallboard dumping from the US exports has caused injury to the domestic industry. The ruling means that preliminary duties of up to 276% imposed by the Canada Border Services Agency on imports from the US in September 2016 end but will be replaced by permanent variable duties on any imports that fall below a floor price established in December 2016, according to the Canadian Press.
In a separate ruling the tribunal also found that provisional duties in Western Canada have 'substantially' reducing competition in those markets. It has recommended that the government consider refunding some of the duties paid so far to alleviate short-term pain for contractors and consumers, and that it consider a special remission of duties to residents of Fort McMurray.
CertainTeed Gypsum Canada complained to the Canada Border Services Agency about wallboard originating in the US being sold at 'unfair' prices and this led to an investigation in June 2016. However, CertainTeed Gypsum Canada may have benefitted from being the only Canadian manufacturer of wallboard in Western Canada following the introduction of provisional duties in September 2016.
The tribunal will issue the reasons for its findings and recommendations in both cases on 19 January 2017.
Continental Building Products sales rise so far in 2016
08 November 2016US: Continental Building Products' net sales have risen by 10% year-on-year to US$343m in the first nine months of 2016 from US$311m in the same period of 2015. Its adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 8.6% to US$100m from US$92m. Its gypsum wallboard sales volumes rose by 18% to 176Mm2 from 149Mm2. The company attributed this in the third quarter of 2016 to stronger demand in major construction markets, especially from new residential construction and overall in the southeast of the country.
"For the third consecutive quarter, we experienced stronger demand in our markets east of the Mississippi which drove the 6% net sales growth versus last year," said Jay Bachmann, Continental's chief executive officer.
Johns Manville receives UL certification for DuraCore 300
04 November 2016US: Johns Manville (JM) has received UL certification for DuraCore 300 chopped strands used to reinforce wallboards in the building industry. The product is manufactured at JM's facility in Slovakia. The certification recognises the product for performance and safety standards.
"Our customers can continuously rely on UL certified DuraCore products with improved dosing consistency and dispersion in wallboards," said Jared Cox, Global Product Manager-Chopped Strands Fibers for JM Engineered Products.
Gypsoil to stop production at fertiliser plant
02 November 2016US: Gypsoil is stopping production at its pelletised gypsum fertiliser plant in Winona, Minnesota. The plant has been shut down due to poor market demand, according to the Winona Daily News. The US$5m plant opened in early 2016. It used synthetic gypsum from coal smoke stack scrubbers in Ohio.
USG’s gypsum business sales rise by 4.5% to US$1.9bn so far in 2016
01 November 2016US: Net sales from USG's gypsum business have risen by 4.5% year-on-year to US$1.9bn in the first nine months of 2016 from US$1.82bn in the same period in 2015. Its operating profit rose by 18% to US$310m from US$262m. the company said that surfaces and substrates products drove US$5m of this improved profit. US wallboard volumes increased by 1% while domestic wallboard price was down roughly 1% from the third quarter of 2015. Inflation in wallboard input costs was offset by reduced selling, general and administrative expenses spending in the US gypsum business.
"I'm pleased to report that we expanded margins in both of our US businesses as well as in our USG Boral joint venture," said James S Metcalf, president and CEO of USG. He added that the company intends to use the US$670m from its sale of L&W Supply to reduce debt.
Overall, the company reported that its net sales rose by 4% to US$2.28bn from US$2.2bn and its net income rose by 13% to US$203m from US$179m. Sales from its USG Boral business rose by 4.9% to US$778m from US$742m. Improved results from USB Boral in the third quarter of 2016 were attributed to improved gypsum wallboard price and volume, manufacturing efficiencies and increased sales of 'adjacent' products.
Canada: The federal government has asked for a faster review of anti-dumping tariffs on gypsum wallboard imports. However, the new schedule isn't expected to immediately reduce the duties, according to the Canadian Press. The Finance Department says it wants to help middle-class families in Western Canada, especially those involved in the reconstruction of Fort McMurray, Alberta following wildfires earlier in 2016 that destroyed large numbers of buildings.
"I am grateful to hear the federal government is responding to our concerns and the concerns of people across Fort McMurray with the recent ruling by Canada Border Services Agency that effectively closed Western Canada from imported drywall,'' said Brian Jean, the leader of the opposition Wildrose Party in a statement. He added that his party will continue to ask the government to suspend the tariff during its review or exempt wallboard coming into Fort McMurray from the tax.
In September 2016 the Canada Border Services Agency imposed preliminary tariffs of up to 277% cent on US gypsum wallboard imported into Canada for use in British Columbia, Alberta, Saskatchewan, Manitoba and the Yukon and Northwest Territories. The agency said it was responded to a complaint by CertainTeed Gypsum Canada.
Jennifer F Scanlon to succeed James S Metcalf as CEO at USG
29 September 2016US: James S Metcalf will retire as chairman of the board, president and chief executive officer (CEO) of USG with effect from 31 October 2016. He will be succeeded by Jennifer F Scanlon, executive vice president, president, International and president of L&W Supply Corporation. Scanlon has been appointed as a director of USG immediately and she will serve as executive vice president and CEO-elect until 1 November 2016. As part of the leadership transition, Steven F Leer, lead director, will become non-executive chairman of the board, effective 1 November 2016.
"After more than 35 years with the company and more than a decade in senior leadership roles, including almost six years as president and chief executive officer, I believe that it is the right time for me to move on to the next phase of my professional life and for Jenny to guide USG into its next chapter," said Metcalf. He has served as president and chief executive officer since January 2011 and as chairman since December 2011.
Jennifer Scanlon is also a director on the USG Board of Directors and the chairman of the board of USG Boral Building Products. She leads USG's international joint ventures across Asia, Australasia and the Middle East. Her previous assignments at USG include vice president and chief information officer and head of corporate strategy. Scanlon joined USG in 2003 as the director of supply chain and customer relationship strategy. Prior to USG, Scanlon was a senior vice president for Bricker & Associates, a management consulting firm that specialised in assisting Fortune 500 organisations dramatically increasing profits through operational improvement. She began her career at IBM, serving in various operational and consulting roles.
Scanlon graduated from the University of Notre Dame in 1988 with a BA in government and computer applications. She earned an MBA in finance and marketing from the University of Chicago Booth School of Business in 1992. Scanlon serves on the boards of the Chicago Council of Global Affairs and of Shore Community Services. Scanlon is a member of the Economic Club of Chicago and the Executives' Club of Chicago.
Steven Leer has been a director of USG since June 2005, and lead director since January 2012. He serves as chair of the Governance Committee and a member of its Compensation and Organisation Committee. Leer retired as chairman of Arch Coal in 2014 after having served in that position since April 2006. He was also the chief executive officer of Arch Coal, Inc. until April 2012. Leer is a director of Norfolk Southern Corporation, Cenovus Energy Inc. and Parsons Corporation. He is a former director of the Greater St Louis Area Boy Scouts of America and the National Association of Manufacturers.
US: Louisiana's attorney general Jeff Landry says he has cancelled contracts with attorneys involved in state suits against Chinese gypsum wallboard companies, and is auditing nearly US$7m worth of contracts. Landry said he's auditing the billing and work under five contracts to see what they've done to help Louisiana's case. His office will take over the work, according to Associated Press.
"The state has spent nearly US$7m on outside legal counsel for the Chinese drywall litigation," said Landry. "This use of taxpayers' hard-earned money comes to an end under my watch." He added that payments to the firms ranged from nearly US$5.6m to the Perkins Coie law firm to US$101,700 to the Theriot Group.
Knauf Plasterboard Tianjin and four companies it supplied agreed in 2010 to pay for home repairs relating to damage caused by Chinese gypsum wallboard used mainly in the south of the US. District Judge Eldon Fallon has ruled that Taishan Gypsum must pay damages, and is considering the amount.