Strong Q2 for USG
Building products titan USG Corporation – the makers of Sheetrock – reported second quarter 2018 net sales of $880 million, up nearly 9% from net sales of $811 million in the second quarter 2017.
The Chicago-based company also reported second quarter net income of $58 million, soaring 61% from a net income of $36 million for the same period last year.
USG’s U.S. Wallboard & Surfaces segment net sales for the second quarter of 2018 increased $30 million, or 6%, compared with the second quarter of 2017. The segment generated $81 million of operating profit in the second quarter of 2018.
Prices of wallboard price increased 2% from the second quarter of 2017 due primarily to a January 2018 price increase. While volumes increased 2% compared to the second quarter of 2017, wallboard costs were $12 million higher than the prior year primarily due to rising input and transportation costs, USG said.
The U.S. Performance Materials segment net sales increased by $5 million, or 5%, year over year due to a higher average realized selling price. The segment generated $6 million of operating loss in the second quarter of 2018 partially due to proactively terminating a longstanding marketing contract, which resulted in an $8 million loss.
The company’s U.S. Ceilings segment net sales increased $21 million, or 18%, compared to the second quarter of 2017. The segment generated $23 million of operating profit in the second quarter of 2018.
Last month German building materials manufacturer Gebr. Knauf KG (Knauf) announced that it was acquiring USG in a $7 billion deal that is expected to close in early 2019.
Knauf will buy all of the outstanding shares of USG for about $7 billion. The deal calls for USG shareholders to receive $44 per share, consisting of $43.50 per share in cash payable upon closing of the transaction and a $0.50 per share special dividend that would be paid following shareholder approval of the transaction.
The Chicago-based company also reported second quarter net income of $58 million, soaring 61% from a net income of $36 million for the same period last year.
USG’s U.S. Wallboard & Surfaces segment net sales for the second quarter of 2018 increased $30 million, or 6%, compared with the second quarter of 2017. The segment generated $81 million of operating profit in the second quarter of 2018.
Prices of wallboard price increased 2% from the second quarter of 2017 due primarily to a January 2018 price increase. While volumes increased 2% compared to the second quarter of 2017, wallboard costs were $12 million higher than the prior year primarily due to rising input and transportation costs, USG said.
The U.S. Performance Materials segment net sales increased by $5 million, or 5%, year over year due to a higher average realized selling price. The segment generated $6 million of operating loss in the second quarter of 2018 partially due to proactively terminating a longstanding marketing contract, which resulted in an $8 million loss.
The company’s U.S. Ceilings segment net sales increased $21 million, or 18%, compared to the second quarter of 2017. The segment generated $23 million of operating profit in the second quarter of 2018.
Last month German building materials manufacturer Gebr. Knauf KG (Knauf) announced that it was acquiring USG in a $7 billion deal that is expected to close in early 2019.
Knauf will buy all of the outstanding shares of USG for about $7 billion. The deal calls for USG shareholders to receive $44 per share, consisting of $43.50 per share in cash payable upon closing of the transaction and a $0.50 per share special dividend that would be paid following shareholder approval of the transaction.