Gypsum industry news

US: USG’s operating profit for its gypsum business has fallen by 4.5% to US$85m in the third quarter of 2017 from US$88m in the same period in 2016. The gypsum wallboard producer blamed this on falling prices, rising input costs and poor weather. It said that the average realised selling price for US wallboard decreased by approximately 2% sequentially and was impacted by freight costs and changes in wallboard product mix due to hurricanes Harvey and Irma. US wallboard manufacturing costs also increased by US$10m due, primarily to increased waste paper costs. Despite this, overall net sales for the quarter increased.

“We had positive momentum in the third quarter, with increased net sales and wallboard volume,” said Jennifer Scanlon, president and chief executive officer (CEO) of USG.

Gypsum segment net sales rose by 5.4% to US$2bn for the first nine months of 2017 from US$1.9bn in the same period in 2016. Operating profit fell by 14% to US$266m from US$310m.

US: Sensortech Systems is looking for client companies to run extended trials of its new Kiln Jam Detector KJD-7000. Part of the trial will be to test the functionality of the sensor and, over a period of some months, check reliability and stability. Another part is to receive input from users as to what features need to be incorporated, particularly in the software design.

The company says that its new radio frequency (RF) gypsum wallboard jam detector product offers a saving compared to previous sensors. The RF sensor requires no maintenance and is unaffected by siloxane build-up or other debris. The Kiln Jam Detector KJD-7000 uses a custom-designed coaxial cable able to withstand the high operating temperatures.

The sensor itself follows the design of open-frame planar sensors used for moisture measurement. The outer frame is formed from 16ga stainless steel; ceramic insulators isolate a stainless-steel centre electrode to which the high temperature cable is attached. The electronics unit is located outside the dryer at each deck level. An on-board 32-bit ARM-Based micro-controller processes signals from up to three sensors and networks via RS-485 to a dedicated programmable logic controller (PLC).

The system software is set to trigger an alarm when either no product is detected over the sensor for a pre-defined time interval, a blockage upstream, or if a failure to detect gaps between boards over a pre-defined time is recognised. All sensors in an array are node addressable on an RS-485 network. If an anomaly occurs at any sensor, the exact position will be known including which deck and its position on the deck (left, right, centre).

Sensortech will be displaying its new kiln sensor at the Global Gypsum Conference & Exhibition taking place in Krakow, Poland on 25 – 26 October 2017.

US: Saint-Gobain has appointed Mark Rayfield as the president and chief executive officer (CEO) of its subsidiary CertainTeed. He will also serve as the Region CEO of Saint-Gobain Construction Products for North America.

Rayfield has worked as the CEO of Saint-Gobain Building Distribution United Kingdom and Ireland since 2013. He started his career with Saint-Gobain in 1999 in a sales role within Abrasives North America, before assuming the role of Vice President of Saint-Gobain Abrasives North America from 2007 to 2011. Prior to moving to the UK, Rayfield was President of the CertainTeed Siding business from 2011 - 2013.

He succeeds Benoit Bazin, who has served as president and CEO of CertainTeed since January 2017. Bazin will continue to serve as president and CEO, Saint-Gobain’s Construction Products Sector and Senior Vice President, Saint-Gobain Corporation.

US: USG’s Washingtonville gypsum wallboard plant in Pennsylvania plans to spend US$8m towards automation upgrades in 2017. Plant manager Nicholas Latkovic told the Daily Item newspaper that the company also expects to spend US$8m or higher in 2018. The upgrade will include 20 automated guided vehicles and automated board handling equipment to speed up the production process by 20%. The investment is also expected to add four or five people to the total workforce of 125.

US: Continental Building Products' Palatka wallboard plant in Florida has endured Hurricane Irma without any serious damage to the facility. The site is about 30 miles inland of St Augustine and it employs over 125 workers. It closed for the storm to allow employees to prepare themselves and their families. However, it didn't lose power and 'sustained essentially no known damage'. Continental Building Products has announced it will donate US$25,000 to the American Red Cross to support the relief effort.

US: Gypsum Management & Supply, Inc. (GMS), a distributor of gypsum wallboard, suspended ceiling systems and interior construction products, has acquired ASI Building Products, LLC, a provider of ceilings and building products. Both the companies are based in the US. Following the transaction, ASI Building Products majority owner and industry veteran Dave Mayer, along with the entire ASI team, will continue on with GMS going forward.

The acquisition will allow GMS to expand its presence in Michigan, with a portfolio of quality products and reinforces its commitment to customer service.

US: ACG Materials has acquired Diamond Gypsum, a miner of gypsum products that are sold into various oil and gas, infrastructure and agricultural applications. The company owns and operates a quarry in central Oklahoma. No value for the transaction has been disclosed.

"We are excited to further strengthen our position as the leading industrial mineral and aggregate producer in the Midwest," said Paul Harrington, Chief Executive Officer (CEO) of ACG Materials. He added that the acquisition expands ACG Materials' presence in the Sooner Trend Anadarko Basin Canadian and Kingfisher Counties (STACK) shale basin.

ACG Materials, a subsidiary of HIG Capital, is based in Norman, Oklahoma. It mines, mills, processes, and distributes industrial minerals and aggregates including gypsum, anhydrite, limestone, sand, gravel and downstream food, pharmaceutical and plaster products.

US: Eagle Materials' revenue has risen by 23% year-on-year to US$366.1m in the first quarter of its 2018 fiscal year, which runs 1 April – 30 June 2017. Its first quarter earnings before interest and income taxes increased by 22%, reflecting improved sales volumes and net sales prices across nearly all businesses.

Eagle Materials' Gypsum Wallboard and Paperboard revenues for the first quarter totalled US$154m, 9% higher year-on-year. The average gypsum wallboard net sales price in the quarter rose by 10% to US$1711/Mm² (US$159/MSF). Gypsum wallboard sales volumes rose by 11% to 60Mm² (654MMSF). Paperboard sales volumes fell by 5% to 79,000t, reflecting the timing of third-party purchases. The average paperboard net sales price rose by 10% to US$550/t.

Gypsum wallboard and paperboard reported first quarter operating earnings fell by 4% to US$48.8m. The earnings decline primarily reflected increased operating costs at Eagle Materials' paper mill due to the timing of its annual maintenance outage and higher recycled fibre costs, partially offset by improved wallboard sales volumes and sales prices.

US: 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.

US: 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.