USG Q1 sales up slightly
Building materials manufacturer USG reported first quarter 2018 net sales of $786 million, up 2.4% from net sales of $767 million in the first quarter of 2017.
The Chicago-based owner of Sheetrock also reported first quarter net income of $37 million, a 32% drop from a net income of $55 million during the same period a year ago.
First quarter 2018 results were affected by wallboard volumes decreasing by approximately 12%. Additionally, wallboard costs were $14 million higher than the prior year. Wallboard price increased 9% from the fourth quarter of 2017 and 1% from the first quarter of 2017, due primarily to a January 2018 price increase, USG reported.
"As we previously indicated, our wallboard volumes were impacted by the timing of our U.S. wallboard price increase and the frequent storms that affected many regions of the country," said Jennifer Scanlon, president and CEO of USG Corporation. "However, we are encouraged to see shipping volumes increase over the last six weeks, as our Sheetrock brand and industry leading technology continue to be preferred by contractors."
The U.S. Wallboard and Surfaces segment had sales of $441 million for the quarter, down 6% from sales of $469 million during the first quarter of 2017. U.S. Performance Materials rose 7% to $92 million from $86 million. U.S. Ceilings sales grew 23% to $138 million from $112 million for the period.
U.S. Boral Building Product sales increased 4% to $287 million from $276 million.
The Chicago-based owner of Sheetrock also reported first quarter net income of $37 million, a 32% drop from a net income of $55 million during the same period a year ago.
First quarter 2018 results were affected by wallboard volumes decreasing by approximately 12%. Additionally, wallboard costs were $14 million higher than the prior year. Wallboard price increased 9% from the fourth quarter of 2017 and 1% from the first quarter of 2017, due primarily to a January 2018 price increase, USG reported.
"As we previously indicated, our wallboard volumes were impacted by the timing of our U.S. wallboard price increase and the frequent storms that affected many regions of the country," said Jennifer Scanlon, president and CEO of USG Corporation. "However, we are encouraged to see shipping volumes increase over the last six weeks, as our Sheetrock brand and industry leading technology continue to be preferred by contractors."
The U.S. Wallboard and Surfaces segment had sales of $441 million for the quarter, down 6% from sales of $469 million during the first quarter of 2017. U.S. Performance Materials rose 7% to $92 million from $86 million. U.S. Ceilings sales grew 23% to $138 million from $112 million for the period.
U.S. Boral Building Product sales increased 4% to $287 million from $276 million.