USG gets profitable in fourth quarter and full year
One of the nation’s iconic building product brands swung to a profit in its fourth quarter, pointing to “impressive” margin expansion in its gypsum and ceilings businesses.
For the full year, Chicago-based USG’s net income reached $991 million, compared with $37 million in the previous year. Sales for the quarter slipped 3.1%, but were up 1.4% for the full year.
“In 2015, we realized operating margin expansion in all of our businesses and generated the most earnings since 2006 when demand was 50% higher,” said Metcalf. “With growth expected in every market that we serve, a continued focus on controlling costs, and our commitment to innovative new products, I’m excited for what lies ahead in 2016.”
Gypsum segment generated $93 million of operating profit in the fourth quarter of 2015. In the ceiling business, stronger pricing in all tile categories was the primary driver of record fourth-quarter margins of 16.7%.
On a consolidated basis in the fourth quarter of 2015, net sales were $925 million, compared with $954 million in the fourth quarter of 2014. Foreign currency unfavorably impacted net sales by $18 million in the fourth quarter of 2015.
Sales
15Q4: $925 million
14Q4: $954 million
% change: down 3.1%
15FY $3.78 billion
14FY: $3.72 billion
% change: up 1.4%
Net income
15Q4: $812 million
14Q4: ($53 million)
% change: NA
15FY: $991 million
14FY: $37 million
% change: up 2,578%