First Quarter 2012 vs. First Quarter 2011
Consolidated Business Highlights
-
Sales increased 13 percent to $812 million
-
Operating profit of $27 million compared to operating loss of $58
million
-
Adjusted operating profit of $29 million compared to adjusted
operating loss of $49 million
Business Unit Highlights
-
U.S. Gypsum wallboard shipments totaled 1.16 BSF vs. 992 MMSF
-
U.S. Gypsum average wallboard price of $130.43 per thousand square
feet vs. $109.15
-
Worldwide Ceilings operating profit increased 12 percent to $29
million
-
L&W same store net sales increased 13 percent
-
SHEETROCK(R) Brand UltraLight Panels
accounted for 41 percent of all USG wallboard shipments in the United
States
CHICAGO, Apr 17, 2012 (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(R) Brand UltraLight Panels products, which now
include both SHEETROCK(R) Brand UltraLight Panels FIRECODE(R)
30 and SHEETROCK(R) Brand UltraLight Panels FIRECODE(R)
X, as well as our SHEETROCK(R) 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 CORPORATION
|
|
CONSOLIDATED STATEMENT OF OPERATIONS
|
|
(dollars in millions except per share data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
|
|
|
|
ended March 31,
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 CORPORATION
|
|
CORE BUSINESS RESULTS
|
|
(dollars in millions)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
|
|
|
|
ended March 31,
|
|
|
|
2012
|
|
2011
|
|
Net 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 CORPORATION
|
|
CONSOLIDATED BALANCE SHEETS
|
|
(dollars in millions)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
As of
|
|
As of
|
|
|
|
March 31,
|
|
December 31,
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
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 CORPORATION
|
|
RECONCILIATION of ADJUSTED OPERATING LOSS to REPORTED GAAP
OPERATING LOSS
|
|
(dollars in millions)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
|
|
|
|
ended March 31
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
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-Lived
|
|
|
|
|
|
Asset 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 COMPANY
|
|
WALLBOARD 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.
|
SOURCE: USG Corporation
USG Corporation
Media Inquiries: 312/436-4356
Investor
Relations: 312/436-6098
|
