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Press release from Business Wire

USG Corporation Reports 2012 First Quarter Results

<p> <span class='bwuline'><b>First Quarter 2012 vs. First Quarter 2011</b></span> </p> <p> Consolidated Business Highlights </p> <ul> <li class='bwlistitemmargb'> <i>Sales increased 13 percent to $812 million</i> </li> <li class='bwlistitemmargb'> <i>Operating profit of $27 million compared to operating loss of $58 million</i> </li> <li class='bwlistitemmargb'> <i>Adjusted operating profit of $29 million compared to adjusted operating loss of $49 million</i> </li> </ul> <p> Business Unit Highlights </p> <ul> <li class='bwlistitemmargb'> <i>U.S. Gypsum wallboard shipments totaled 1.16 BSF vs. 992 MMSF</i> </li> <li class='bwlistitemmargb'> <i>U.S. Gypsum average wallboard price of $130.43 per thousand square feet vs. $109.15</i> </li> <li class='bwlistitemmargb'> <i>Worldwide Ceilings operating profit increased 12 percent to $29 million</i> </li> <li class='bwlistitemmargb'> <i>L&W same store net sales increased 13 percent</i> </li> <li class='bwlistitemmargb'> <i>SHEETROCK</i><sup><i>®</i></sup><i> Brand UltraLight Panels accounted for 41 percent of all USG wallboard shipments in the United States</i> </li> </ul>

Tuesday, April 17, 2012

USG Corporation Reports 2012 First Quarter Results08:30 EDT Tuesday, April 17, 2012 CHICAGO (Business Wire) -- USG Corporation (NYSE:USG), a leading building products company, today reported first quarter 2012 net sales of $812 million, up 13 percent from first quarter 2011 net sales of $721 million. USG's first quarter operating profit was $27 million compared to a $58 million operating loss in the first quarter of 2011. The first quarter 2012 net loss after-tax was $27 million or $0.26 per share. This result compares to a $105 million net loss in the first quarter of 2011 or $1.01 per share. “Despite continuing low demand, our emphasis on achieving operating profit is succeeding, and continues to be a top priority,” said James S. Metcalf, Chairman, President and CEO. “Our focus on our customers, innovation and growing our adjacent businesses contributed to our first quarter results. All units showed improved results, supported by a modest increase in U.S. wallboard demand and solid performance across our product lines including ceilings, substrates and joint compounds. Of particular note is the market enthusiasm over our expanding line of SHEETROCK® Brand UltraLight Panelsproducts, which now include both SHEETROCK® Brand UltraLight Panels FIRECODE® 30 and SHEETROCK® Brand UltraLight Panels FIRECODE® X, as well as our SHEETROCK® Brand UltraLightweight All Purpose Joint Compound.” The corporation's adjusted operating profit was $29 million in the first quarter of 2012, which compares to an adjusted operating loss of $49 million in the first quarter of 2011. The adjusted operating profit for the first quarter of 2012 excludes $2 million of restructuring and asset impairment charges. The adjusted operating loss for the first quarter of 2011 excludes $9 million of restructuring and asset impairment charges. “Although demand in our core markets still remains near historical lows,” Metcalf said, “we are confident our strategy will continue to move us toward positive net earnings.” A conference call is being held today at 10:00 A.M. Central Time during which USG senior management will discuss the corporation's operating results. The conference call will be webcast on the USG website, www.usg.com, in the Investor Relations section. The dial-in number for the conference call is 1-800-315-2944 (1-847-413-2929 for international callers), and the pass code is 32196653. After the live webcast, a replay of the webcast will be available on the USG website. In addition, a telephonic replay of the call will be available until Friday, April 27, 2012. The replay dial-in number is 1-888-843-7419 (1-630-652-3042 for international callers), and the pass code is 32196653. USG Corporation is a manufacturer and distributor of high-performance building systems through its United States Gypsum Company, USG Interiors, LLC, L&W Supply Corporation and other subsidiaries. Headquartered in Chicago, USG's worldwide operations serve the residential and non-residential construction markets, repair and remodel construction markets, and industrial processes. USG's wall, ceiling, flooring and roofing products provide leading-edge building solutions for customers, while L&W Supply branch locations efficiently stock and deliver building materials nationwide. For additional information, visit the USG website at www.usg.com. This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 related to management's expectations about future conditions. Actual business, market or other conditions may differ from management's expectations and, accordingly, may affect our sales and profitability or other results and liquidity. Actual results may differ due to various other factors, including: economic conditions, such as the levels of new home and other construction activity, employment levels, the availability of mortgage, construction and other financing, mortgage and other interest rates, housing affordability and supply, the levels of foreclosures and home resales, currency exchange rates and consumer confidence; capital markets conditions and the availability of borrowings under our credit agreement or other financings; competitive conditions, such as price, service and product competition; shortages in raw materials; changes in raw material, energy, transportation and employee benefit costs; the loss of one or more major customers and our customers' ability to meet their financial obligations to us; capacity utilization rates for us and the industry; changes in laws or regulations, including environmental and safety regulations; the outcome in contested litigation matters; our ability to complete surplus asset sales and other divestitures; the effects of acts of terrorism or war upon domestic and international economies and financial markets; and acts of God. We assume no obligation to update any forward-looking information contained in this press release.     USG CORPORATIONCONSOLIDATED STATEMENT OF OPERATIONS(dollars in millions except per share data)(Unaudited)   Three Monthsended March 31,20122011     Net sales $ 812 $ 721   Cost of products sold   702     685     Gross profit 110 36   Selling and administrative expenses 81 85   Restructuring and long-lived asset impairment charges   2     9     Operating profit (loss) 27 (58 )   Interest expense 52 52   Interest income (1 ) (2 )   Other expense, net   1     -     Loss before income taxes (25 ) (108 )   Income tax expense (benefit)   2     (3 )   Net loss $ (27 ) $ (105 )     Basic loss per common share $ (0.26 ) $ (1.01 ) Diluted loss per common share (0.26 ) (1.01 )   Average common shares 105,718,156 103,021,407 Average diluted common shares 105,718,156 103,021,407   Other Information: Depreciation, depletion and amortization $ 40 $ 41 Capital expenditures 14 13   Average common shares and average diluted common shares outstanding are calculated in accordance with Accounting Standards Codification 260, "Earnings Per Share."     USG CORPORATIONCORE BUSINESS RESULTS(dollars in millions)(Unaudited)   Three Monthsended March 31,20122011Net Sales:   North American Gypsum: U.S. Gypsum Company $ 381 $ 318 CGC Inc. (gypsum) 84 76 USG Mexico S.A. de C.V. 40 41 Other * 8 7 Eliminations   (27 )   (26 ) Total   486     416     Building Products Distribution: L&W Supply Corporation   270     243     Worldwide Ceilings: USG Interiors, Inc. 119 110 USG International 59 61 CGC Inc. (ceilings) 18 19 Eliminations   (13 )   (13 ) Total   183     177     Eliminations   (127 )   (115 ) Total net sales $ 812   $ 721       Operating Profit (Loss):   North American Gypsum: U.S. Gypsum Company $ 29 $ (29 ) CGC Inc. (gypsum) 3 3 USG Mexico S.A. de C.V. 5 5 Other *   (5 )   (8 ) Total   32     (29 )   Building Products Distribution: L&W Supply Corporation   (6 )   (22 )   Worldwide Ceilings: USG Interiors, Inc. 23 18 USG International 3 4 CGC Inc. (ceilings)   3     4   Total   29     26     Corporate (22 ) (29 ) Eliminations   (6 )   (4 ) Total operating loss $ 27   $ (58 )   * Includes a shipping company in Bermuda and a mining operation in Nova Scotia, Canada, that was closed in the fourth quarter of 2011.     USG CORPORATIONCONSOLIDATED BALANCE SHEETS(dollars in millions)(Unaudited)   As ofAs ofMarch 31,December 31,20122011   Assets Current Assets: Cash and cash equivalents $ 470 $ 365 Short-term marketable securities 73 164 Restricted cash 1 1 Receivables (net of reserves - $18 and $18) 396 324 Inventories 313 305 Income taxes receivable 9 8 Deferred income taxes 4 4 Other current assets   37     55   Total current assets 1,303 1,226   Long-term marketable securities 65 122 Property, plant and equipment (net of accumulated depreciation and depletion - $1,684 and $1,637) 2,107 2,117 Deferred income taxes 25 25 Other assets   233     229     Total Assets $ 3,733   $ 3,719       Liabilities and Stockholders' Equity Current Liabilities: Accounts payable $ 249 $ 233 Accrued expenses 261 266 Current portion of long-term debt 7 7 Deferred income taxes 12 12 Income taxes payable   4     7   Total current liabilities 533 525   Long-term debt 2,296 2,297 Deferred income taxes 6 6 Other liabilities 744 735 Commitments and contingencies   Stockholders' Equity: Preferred stock - - Common stock 10 10 Treasury stock - - Capital received in excess of par value 2,568 2,561 Accumulated other comprehensive loss (156 ) (174 ) Retained earnings (deficit)   (2,268 )   (2,241 ) Total stockholders' equity   154     156     Total Liabilities and Stockholders' Equity $ 3,733   $ 3,719             Other Information: Total cash and cash equivalents and marketable securities 608 651 Borrowing availability from lines of credit   219     183   Total Liquidity   $ 827     $ 834       USG CORPORATIONRECONCILIATION of ADJUSTED OPERATING LOSS to REPORTED GAAP OPERATING LOSS(dollars in millions)(Unaudited)   Three Monthsended March 3120122011   Adjusted Operating Profit (Loss): North American Gypsum $ 34 $ (22 ) Building Products Distribution (6 ) (21 ) Worldwide Ceilings 29 26 Corporate (22 ) (28 ) Eliminations   (6 )   (4 ) Total   29     (49 )     Restructuring and Long-LivedAsset Impairment Charges: North American Gypsum 2 7 Building Products Distribution - 1 Worldwide Ceilings - - Corporate   -     1   Total   2     9       Reported GAAP Operating Profit (Loss): North American Gypsum 32 (29 ) Building Products Distribution (6 ) (22 ) Worldwide Ceilings 29 26 Corporate (22 ) (29 ) Eliminations   (6 )   (4 ) Total   27     (58 )   References to Adjusted Operating Loss are non-GAAP measures. Management believes this information provides investors with a more useful comparison of the corporation's ongoing business performance.               UNITED STATES GYPSUM COMPANYWALLBOARD REALIZED PRICE & SHIPMENTS       Quarter 1 Quarter 2 Quarter 3 Quarter 4 Full Year Year Price   Volume Price   Volume Price   Volume Price   Volume Price   Volume 2012 $130.43 1.16   2011 $109.15 0.99 $111.55 0.99 $111.66 1.05 $112.59 1.09 $111.27 4.11   Wallboard price reflects amount per one thousand square feet. Volume expressed in billions of square feet. USG CorporationMedia Inquiries: 312/436-4356Investor Relations: 312/436-6098