Gypsum industry news

Spain: Isolana has gained an Environmental Product Declaration (EPD) for its Isoplac laminated gypsum wallboard product. The EPD was registered in late January 2018, it will last five years and it was verified by Tecnalia R&I Certifcación. Isoplac A13 and A15 are laminated gypsum boards with double-sided cardboard and gypsum core, manufactured by continuous rolling process. Isoplac gypsum boards are installed in partitions, backings and interior ceilings forming systems that provide the acoustic insulation, thermal resistance and fire resistance required in each case.

France: Saint-Gobain’s Interior Solutions division sales rose by 4.6% year-on-year to Euro6.88bn in 2017 from Euro6.58bn in 2016. However, its earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 3% to Euro953m form Euro982m. The group said that its division sales grew faster in the second half of the year, driven by growth in Asia and emerging countries. Volumes continued to pick up in Western Europe, especially in France. Trading in North America improved in the second half. Prices rose ‘significantly’, with an acceleration over the course of the year, but remained behind the ‘sharp’ increase in raw material and energy costs.

“All Business Sectors and regions contributed to this good set of results, especially France, which confirmed its recovery. In line with our focus on pricing in an environment where inflation is increasing once again, sales prices rose significantly, particularly in the second half of the year,” said Pierre-André de Chalendar, Chairman and Chief Executive Officer of Saint-Gobain.

US: National Gypsum is considering reopening a gypsum wallboard plant in either Tampa, Florida or Wilmington, North Carolina. The wallboard producer plans to make its final decision late in 2018, according to the Greater Wilmington Business Journal. The Tampa plant was shut in 2008 and the Wilmington plant stopped operations in 2009. The company is planning to expand its presence in the south-east of the country.

Australia: Boral Ltd has announced that its profit for the first half of the 2017-2018 fiscal year (from 1 July 2017 – 31 December 2017) rose by 13%. The company benefited from the 2017 acquisition of the US-based building products firm Headwaters Inc. and continued growth in its Australian business.

It reported a net profit of US$136.0m for the six month period, a rise of 12.7% compared to the same period of the 2016 – 2017 fiscal year when it made US$120.7m. Its profit before amortisation and significant items increased by 58% to US$$186.5m.

"These strong results confirm that our transformation strategy is on track," said Chief Executive Mike Kane. "The Headwaters acquisition has helped transform Boral into a construction materials and building products group with a greater geographic reach and improved prospects for growth."

Boral’s US business, which was only breaking even in 2015 – 2016, recorded a fourfold rise in earnings, despite adverse impacts from bad weather, including two hurricanes.

Kane also said Boral’s Australian arm, its largest divison, was ‘exceptionally strong’ during the half. Boral reported a 12% rise in earnings before interest, tax, depreciation and amortisation from that business.

"Higher revenues and earnings were driven by increased spending on infrastructure, in line with our expectations that a large proportion of our work would gradually shift from residential to infrastructure projects, primarily in the eastern states," said Kane.
Boral reported a 1% dip in earnings from its USG Boral division, a joint-venture with USG Corp., the largest US maker of gypsum wallboard, which operates throughout Asia, the Middle East, Australia and New Zealand.

US: Eagle Materials has reported its financial results for the third quarter of the 2018 fiscal year, which ended on 31 December 2017. It recorded record revenues of US$359.4m, a rise of 19% compared to the same period of the 2017 fiscal year.

Gypsum wallboard and paperboard revenues for the third quarter of the 2018 fiscal year totalled US$162.6m, which were 11% greater than the same quarter a year ago. The average gypsum wallboard net sales price this quarter was US$151.13/MSF, 1% less than the same quarter a year ago. Gypsum wallboard sales volumes were a third quarter record of 709MMSF, a 10% increase from the same quarter last year. Paperboard sales volumes for the quarter were also a record and 7% greater than the same quarter a year ago. The average paperboard net sales price for the quarter was US$581.95/t, 11% greater than the same quarter a year ago.

Gypsum wallboard and paperboard activities reported third quarter operating earnings of US$50.7m, up by 1% from the same quarter last year. The earnings improvement primarily reflects improved gypsum wallboard and paperboard sales volumes and higher average paperboard net sales prices.

During the third quarter, Eagle and its subsidiary, American Gypsum, entered into settlement agreements with counsel representing the direct and indirect purchaser classes to settle all claims made against the company and American Gypsum. Pursuant to the settlement agreements, which remain subject to court approval, the Company and American agreed to make payments totalling approximately US$39m. Eagle and American Gypsum continue to deny all wrongdoing but settled to avoid further litigation expense, distraction of management, and the risk of litigation. Eagle expects to make this cash payment in the next 12 months.