Gypsum industry news

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.

Spain: An agreement has been reached to make Etex the majority shareholder of Pladur, a Spanish manufacturer of gypsum products. Spanish sector peer Coemac currently owns 59.31% of the company, while Etex holds the remaining 40.69% of the shares. The agreement, which is subject to customary closing conditions, provides for the sale by Coemac of 35% of the shares to Etex, with an option for Coemac to transfer the remaining 24.31% in 2020. Closing of the transaction is expected to take place in December 2017.

Australia: The Port of Bundaberg has received its first shipment of gypsum for the new Knauf Plasterboard wallboard plant that has been built there. The US$55m plant has recently been constructed at the port, according to Australian Government News. The port expects to receive a gypsum shipment every two to three months from now on. The wallboard plant is expected to officially open in August 2017.

Germany: Rigips has inaugurated its first gypsum recycling plant at Gelsenkirchen in North Rhine-Westphalia. The subsidiary of Saint-Gobain will recycle gypsum with New West Gypsum Recycling Germany. Waste material from buildings from the Rhine-Ruhr region and the northern part of Rhineland-Palatinate will be sent to a reprocessing site operated by New West Gypsum first before being despatched to the Rigips plant where it will be returned to the production process. Rigips intends to open more gypsum recycling plants following the start-up process of its new unit.

"With the start of the plant, Rigips assumes a pioneering role for the entire drywall construction industry. As the first manufacturer, we in North Rhine-Westphalia are now able to implement the idea 'from gypsum to gypsum'. Thus we cover the complete product service life cycle, from the raw material extraction via the production and installation to the demolition and the recycling," said Werner Hansmann, chairman of the management at Rigips.

France: Saint-Gobain says that a cyber attack that hit its operations in late June 2017 is unlikely to negatively affect its first-half financial results by more than 1%. It is still investigating the impact of the incident and will report more fully in its results on 27 July 2017.

The building materials producer added that it had restored its remaining operations still 'experiencing difficulties' back to normal. It said that since early July 2017 the 'vast majority' of its businesses had been operating normally and that no personal data was disclosed to any third party. It does not expect the event to have any future commercial impact.