USG moves the needle in Q2

USG Corporation reported progress in the second quarter when it came to revenue -- and a few smaller milestones. However, the company pulled in approximately half the net income it did in the year-ago quarter.

Net sales were $811 million for the quarter ended June 30, up 5.4% from $769 million in the second quarter of 2016.

Net income of $36 million compared to $74 million in the year-ago quarter.

However, the company also set a 9-year record for US wallboard shipments.

“Our US wallboard shipments in the second quarter of 2017 were up double-digits and were at the highest levels we have seen since 2008,” said Jennifer F. Scanlon, President and CEO. “However, rising commodity costs and a competitive pricing environment weighed on our operating margins and second quarter performance. We are taking actions to address inflation and will continue our strategic investment in advanced manufacturing to deliver profitable growth.”

Additionally, US wallboard volumes increased by 10% in the second quarter of 2017. However, Ceilings operating profit decreased by $8 million, a drop that was driven primarily by higher steel costs as well as lower ceiling tile pricing.

“This quarter we launched the Commercial Construction Index, a new quarterly index that will help measure the health and vitality of the commercial construction industry,” added Scanlon. "The initial results from the survey validate our efforts to create and bring to market innovative products like Ensemble Monolithic Acoustical Ceiling Systems and Sheetrock® Brand EcoSmart Panels, which we introduced this year. These products address challenges faced by our industry, including speed of construction, labor availability, and sustainability.”