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USG gets profitable in fourth quarter and full year

2/20/2018

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%


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