Gypsum industry news

Belarus: The Belarusian government has approved a decision to sell its entire 99.5% stake in OJSC Belgips to Russia's Volma Corporation according to Architecture and Construction Minister Anatoly Nichkasov. At a press conference reported upon by Russian News Agency Interfax, Nichkasov added that the government will sell its stake of the wallboard and gypsum partition block producer for to US$7m.

"This topic has been considered at the government level and it was approved in principle by the presidential administration. At the request of Russian company Volma, the government stake will be transferred to it once preparations of the investment contract are finished," the minister said. The sale is expected to be finalised in the third quarter of 2013.

The government intends to modernise Belgips' existing wallboard plant in Minsk, which was originally commissioned in 1948, and to build a new plant outside of Minsk with the sale. In addition, the sale will carry the agreement that the Volma will supply raw gypsum to the company at a reduced cost.

US: Eagle Materials has reported financial results for the first quarter of the 2014 fiscal year, which ended on 30 June 2013. It saw its revenue for the quarter increase to US$227m, an increase of 47% year-on-year and earnings before interest and income taxes were up by 109% to US$49.5m. Its net earnings were US$30.1m, a 115% rise from US$14m in the first quarter of the prior fiscal year.

Eagle's Gypsum Wallboard and Paperboard businesses reported first quarter operating earnings of US$35.3m, up 83% from the same quarter of the prior fiscal year. Improved gypsum wallboard net sales prices were the primary driver of the quarterly earnings increase. Additional contributions came from improved sales volumes in both wallboard and paperboard.

Gypsum Wallboard and Paperboard revenues for the first quarter totalled US$114.9m, a 28% increase from the same quarter in the 2013 fiscal year. The revenue increase reflects higher average wallboard net sales prices and higher gypsum wallboard and paperboard sales volumes. The average gypsum wallboard net sales price this quarter was US$1.57 per square meter, 23% greater than the same quarter a year ago.

Wallboard sales volume for the quarter of 532 million square feet represented a 16% increase from the same quarter of the 2012 - 2013 fiscal year.

US: PABCO Building Products has acquired the QuietRock sound-proofing wallboard business from Serious Energy, a producer of acoustic and thermal insulation. PABCO has not disclosed the cost of the purchase.

"Given our long history with PABCO, we were happy when they sought to acquire the QuietRock business. We look forward to a smooth transition," said Tassilo Baeuerle, the president and CEO of Serious Energy. Ryan Lucchetti, president of PABCO, added that the acquisition would expand PABCIOs range of products and give it access to new technology and staff.

QuietRock provides soundproof wallboard products to the commercial and residential building markets. PABCO is a longstanding QuietRock supplier and it plans to continue production at the QuietRock manufacturing site in Newark, California, according to Serious Energy.

US: The Gypsum Association, the gypsum industry association for North America, has announced that Stephen H Meima has assumed the position of Deputy Executive Director / Chief Operating Officer. The association said that, in this role, Maima would help strengthen the organisation as the gypsum wallboard industry's pre-eminent resource for leadership, education and objective expertise.

"I'm looking forward to working closely with Gypsum Association Executive Director Michael Gardner, the Board of Directors and committees and the staff to promote the value and sustainability of gypsum board and gypsum panel products," said Meima. "I am, indeed, eager to help advance the development, growth and general welfare of the gypsum industry in the US and Canada."

Michael Gardner praised Meima's extensive background in marketing and building materials management. "This position will contribute significantly to the Gypsum Association's ability to meet the challenges of representing a building materials industry as the economy continues to recover," said Gardner. "Steve's strong industry background and his experience in sustainability issues impart a substantial talent to our organisation."

US: USG Corporation (USG) has reported that its net sales rose by 15% year-on-year to US$916m in the second quarter of 2013 from US$798m in the same period in 2012. Net income rose to US$25m in the quarter compared to a loss of US$57m in 2012.

"We are pleased to generate net income for the second consecutive quarter," said James S Metcalf, Chairman, President and CEO. "Results in all major business units have improved from one year ago, including L&W Supply, which achieved an operating profit for the first time since 2008." Metcalf attributed the results to the success of the company's 'Plan to Win' business strategy.

Business unit highlights from the second quarter of 2013 included a 12% rise in wallboard shipments to 120MM2 from 107MM2.