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USG Corporation Reports Third Quarter 2015 Results
Written by Global Gypsum staff
23 October 2015
US: USG Corporation has reported that, on a consolidated basis in the third quarter of 2015, its net sales were US$972m, consistent with the third quarter of 2014.
On an adjusted basis, USG's net sales increased by US$20m or 2%. Operating profit improved by US$80m to US$102m. USG's adjusted operating profit was US$115m in the third quarter of 2015, an US$8m increase from the third quarter of 2014. USG generated US$76m in net income in the third quarter of 2015, compared to a net loss of US$12m in the third quarter of 2014. On an adjusted basis, net income of US$76m increased by US$14m from the third quarter of 2014. Foreign currency unfavourably impacted consolidated net income by US$8m in the third quarter of 2015. Adjusted results exclude results from Gypsum Transportation Limited (GTL) a shipping operation which USG has exited, litigation settlement charges and impairment charges were all recorded in the third quarter of 2014.
USG's gypsum segment generated US$89m of operating profit in the third quarter of 2015. On an adjusted basis, operating profit of US$89m improved by US$4m over the third quarter of 2014, led by the US gypsum business. Wallboard provided US$7m of improved operating profit, while the surfaces and substrates businesses contributed US$6m in incremental profit. These improvements were offset by US$5m of increased selling, general and administrative spending due to the timing of projects and costs incurred, as well as a US$4m unfavourable foreign currency impact.
The USG Boral business generated US$12m of equity income in the third quarter of 2015, consistent with the amount earned in the third quarter of 2014. On a currency-neutral basis, the USG Boral business earned US$15m of equity income, a US$3m improvement over the 2014 quarter.
"We saw margin expansion in our gypsum, distribution and USG Boral businesses, notwithstanding softer than expected demand," said James S Metcalf, Chairman, President, and CEO. "In the third quarter we saw improvements in wallboard, strong contributions from our surfaces and substrates businesses, organic margin growth in distribution and continued expansion in USG Boral. With our focus on controlling costs, we are well positioned to take advantage of an improving demand environment going forward."
Wynnchurch Capital invests in Gypsum Technologies
Written by Global Gypsum staff
21 October 2015
US/Canada: Wynnchurch Capital Ltd, a US-based private equity firm, has made a growth equity investment in Canada's Gypsum Technologies Inc.
Saint-Gobain plants time-capsule in Coventry
Written by Global Gypsum staff
16 October 2015
UK: As part of the 350th Anniversary Celebrations of French building materials group Saint-Gobain, time capsules filled by more than 30 Saint-Gobain brands have been buried at the company's UK Headquarters in Binley, West Midlands followed by the unveiling of a specially-commissioned landmark sculpture designed by architectural students at the University of Nottingham.
The time capsules have been collected from brands across the country, including British Gypsum, Jewson and Celotex, and have been filled with products and innovations from each brand, as well as mementos from current employees.
Richard Halderthay, director of communications at Saint-Gobain UK and Ireland, said, "We hope that when our future colleagues, the 18th generation of Saint-Gobain employees, unearth these capsules in 100 years, they will see how our employees were innovators of the time. This is a great opportunity to celebrate our history as well as share our vision for the future."
Knauf begins construction of Euro16.8m gypsum plant in Samara
Written by Global Gypsum staff
15 October 2015
Russia: Knauf has begun the construction of a Euro16.8m gypsum dry building mix plant in Chapayevsk, Samara. The plant is expected to be commissioned at the end of 2016. The 170,000m2 plant area is under municipal ownership and will be leased by Knauf for 49 years. The plant will be Knauf's 15th production enterprise in Russia.
"In the region there is a raw materials base, which is important for Knauf. As there is quite a large amount of construction in the region currently, construction materials producers are needed. We understand that it is much more advantageous to localise production here, than to transport materials from other regions and engage in, in particular, international logistics," said Samara's Regional Economic Development Minister Alexander Kobenko. "It is planned for the plant to reach full capacity in two and a half years. It will produce about 240,000t/yr of gypsum binder and 130,000t/yr of building mixes. This is about Euro25m/yr," said Kobenko.
CNBM to buy stake in Taishan Gypsum via BNBM for US$661m
Written by Global Gypsum staff
14 October 2015
China: China National Building Materials' (CNBM) 45.2%-owned subsidiary Beijing New Building Material Public Limited Company (BNBM) has agreed to acquire a 35% equity interest in Taishan Gypsum Company through a private issuance of 369 million BNBM shares to Taishan Gypsum minority shareholders at US$1.79/share for a total of US$661m.
Upon completion, BNBM will directly and indirectly hold the entire equity interest in Taishan Gypsum. Taishan Gypsum minority shareholders will hold 20.7% of the enlarged issued share capital of BNBM after the private issuance. The equity interest held by CNBM in BNBM will reduce from about 45.2% to 35.84%.
Upon completion of the transaction, Taishan Gypsum will be wholly-owned by BNBM, enabling CNBM to further integrate its internal resources, allowing BNBM to improve its operating results and further consolidate the group's market position.