USG profits soar in Q4
USG, the Chicago-based building products manufacturer, posted fourth quarter 2018 net sales of $819 million – slipping about 1.4% from net sales of $831 million in the fourth quarter 2017.
Sales for the full year rose 4.3% to $3.34 billion in 2018 from sales of $3.20 billion in 2017.
The maker of the Sheetrock brand of gypsum panels reported a fourth quarter net income of $42 million, marking a big swing from a net loss of $69 million for the same period a year ago. The net loss in the fourth quarter of 2017 included $145 million of income tax expense resulting from the Tax Cuts and Jobs Act.
For the full year, USG reported a net income of $196 million, more than doubling a net income of $88 million in 2017.
The U.S. Wallboard & Surfaces segment net sales for the fourth quarter of 2018 decreased $12 million, or 2%, compared with the fourth quarter of 2017.
Wallboard volumes decreased 8% compared to the fourth quarter of 2017, outpacing industry volumes by 2%. Wallboard prices increased 5% from the fourth quarter of 2017 due primarily to January 2018 and June 2018 price increases. But wallboard costs were $18 million higher than the prior year quarter primarily due to higher input costs, USG said.
U.S. Performance Materials segment net sales decreased by $1 million, or 1%, compared with the fourth quarter of 2017 due to lower shipments. The U.S. Ceilings segment net sales decreased $1 million, or 1%, compared to the fourth quarter of 2017.
USG Boral net sales decreased $20 million, or 6%, compared to the fourth quarter of 2017.
Last June, German building materials manufacturer Gebr. Knauf KG (Knauf) and USG announced that they had entered into a definitive merger agreement to acquire all the outstanding shares of USG. Shareholders of USG approved the move last September.
The transaction is expected to close in early 2019, subject to customary closing conditions, including receipt of regulatory approvals, USG said.
Last month – due to the merger – major changes were unveiled in regard to USG’s top executives and leadership.
Sales for the full year rose 4.3% to $3.34 billion in 2018 from sales of $3.20 billion in 2017.
The maker of the Sheetrock brand of gypsum panels reported a fourth quarter net income of $42 million, marking a big swing from a net loss of $69 million for the same period a year ago. The net loss in the fourth quarter of 2017 included $145 million of income tax expense resulting from the Tax Cuts and Jobs Act.
For the full year, USG reported a net income of $196 million, more than doubling a net income of $88 million in 2017.
The U.S. Wallboard & Surfaces segment net sales for the fourth quarter of 2018 decreased $12 million, or 2%, compared with the fourth quarter of 2017.
Wallboard volumes decreased 8% compared to the fourth quarter of 2017, outpacing industry volumes by 2%. Wallboard prices increased 5% from the fourth quarter of 2017 due primarily to January 2018 and June 2018 price increases. But wallboard costs were $18 million higher than the prior year quarter primarily due to higher input costs, USG said.
U.S. Performance Materials segment net sales decreased by $1 million, or 1%, compared with the fourth quarter of 2017 due to lower shipments. The U.S. Ceilings segment net sales decreased $1 million, or 1%, compared to the fourth quarter of 2017.
USG Boral net sales decreased $20 million, or 6%, compared to the fourth quarter of 2017.
Last June, German building materials manufacturer Gebr. Knauf KG (Knauf) and USG announced that they had entered into a definitive merger agreement to acquire all the outstanding shares of USG. Shareholders of USG approved the move last September.
The transaction is expected to close in early 2019, subject to customary closing conditions, including receipt of regulatory approvals, USG said.
Last month – due to the merger – major changes were unveiled in regard to USG’s top executives and leadership.