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Eagle Materials annual revenue bounces back by 30% to US$159m
Written by Global Gypsum staff
16 May 2013
US: Eagle Materials' revenue has increased by 30% to US$643m for its financial year to 31 March 2013, from US$495m in the same period of 2011 – 2012. The US-based building materials provider saw fourth quarter results improve across all business lines reflecting an improving construction market in the US.
Eagle's gross profit for the year more than doubled to US$103m in 2013 – 2012 from US$40.5m in 2012 – 2011. Revenues for its gypsum wallboard business rose by 41% to US$307m from US$218m. Sales volumes of wallboard rose by 17% to 177MM2 from 152MM2. Eagle attributed the increase in operating earnings to higher net wallboard sales prices and sales volumes.
Florida development settles for US$22m in ‘defective’ wallboard case
Written by Global Gypsum staff
09 May 2013
US: A Florida-based property development built with 'defective' Chinese wallboard has reached a US$22m settlement with the manufacturer, supplier and installer, according to its attorney.
The settlements mark the first time a multifamily structure has received compensation under the multi-district litigation in New Orleans federal court, which consolidated Chinese wallboard lawsuits from the individual homeowner to the wallboard makers, said attorney Greg Weiss of Palm Beach Gardens. Weiss has represented the owners of 320-unit Villa Lago at Renaissance Commons in Boynton Beach.
Knauf Plasterboard Tianjin reached a global settlement in the litigation to pay for the repairs. It is estimated Knauf will have to pay US$10.2m to repair Villa Lago. A previous US$4.6m settlement had been reached with the builder, RJR Holdings II LLC, Boynton Beach. In a twist, RJR Holdings was both a defendant and a plaintiff after developing the property and still owning 130 units.
Boral cuts another 100 jobs in Australia
Written by Global Gypsum staff
02 May 2013
Australia: Building materials group Boral has cut 100 jobs from its Australian business, taking total job losses from its global operations to 1100 since January 2013. A company spokesperson confirmed the job cuts to the Australian Financial Review ahead of a presentation by chief executive Mike Kane in Sydney.
Kane's presentation revealed Boral's strategy, including ambitious growth targets for the Asian gypsum and US businesses. Its gypsum business holds a 40-45% market share in Asia with a wallboard production capacity of 625Mm2/yr.
Saint-Gobain sales drop by 4.8% in Q1
Written by Global Gypsum staff
29 April 2013
France: Saint-Gobain has reported that its sales fell by 4.8% to Euro9.67bn for the first quarter of 2013, down from Euro10.2bn in the same period in 2012. The France-based building materials multinational blamed the decline on bad weather, fewer working days in the period compared to the previous year and the continued economic slowdown in Europe.
"We anticipate a gradual recovery in the group's trading over the next few quarters and confirm our target of a recovery in operating income in the second half after having bottomed out between mid-2012 and mid-2013," said chairman and chief executive, Pierre-André de Chalendar.
Sant-Gobain's Construction Products Interior Solutions sector, which includes gypsum wallboard manufacturing, reported a 4.4% drop in like-for-like sales in the first quarter of 2013, mainly due to a drop in volumes in western Europe. However, Asia and emerging countries reported a 8.8% rise in sales.
By region across all business sectors, in France Sant-Gobain reported a 8.8% fall in sales to Euro2.80bn in the first quarter of 2013 from Euro2.90bn in the same quarter in 2012. Other western European countries saw a 9.5% fall in sales to Euro3.80bn from Euro4.18bn. North America reported a rise of 3.1% to Euro1.56bn from Euro1.52bn. Emerging countries, Asia and Pacific saw a 1.5% rise to Euro2.03bn from Euro1.94bn. In this territory Sant-Gobain singled out 5.4% sales growth in Latin America for offsetting declines in China and South Korea.
USG returns to net profit in first quarter 2013
Written by Global Gypsum staff
24 April 2013
US: USG Corporation (USGC) reported first quarter 2013 net sales of US$814m on 24 April 2013, a rise of 4% compared to the first quarter of 2012, when it had net sales of US$783m. USG's first quarter 2013 operating profit was US$49m compared to a US$24m a year earlier. Its first quarter 2013 net income was US$2m, compared to a US$27m net loss in the first quarter of 2012.
"We are pleased to report our first quarter of net income in more than five years," said James S Metcalf, Chairman, President and CEO. "All segments showed improved results in the period and our commitment to innovation and lowering our break-even are evident in our results."
The corporation's adjusted net income was US$1m in the first quarter of 2013, which compares to an adjusted net loss of US$27m in the first quarter of 2012. The adjusted net income for the first quarter of 2013 excludes US$2m of restructuring charges and a US$3m benefit from a change in tax law. The adjusted net income for the first quarter of 2012 excludes US$2m of restructuring charges and US$2m of income from discontinued operations.
"Achieving positive net income in the first quarter is an important milestone as we emerge from the most significant downturn in our company's history, but there is more work to be done," Metcalf said. "We will continue to execute 'Our Plan to Win' as the recovery continues in our core markets."