USG reports margin boosts across the board

USG Corporation pulled ahead in the third quarter with expanded margins across the board and a decent gain in net sales.

“I'm pleased to report that we expanded margins in both of our US businesses as well as in our USG Boral joint venture,” said James Metcalf, president and CEO. “We expect to close the sale of our L&W Supply business for $670 million on October 31st, and intend to use the proceeds from the sale to retire debt.”

Net sales for the quarter came in at $767 million, up from $747 million in the prior-year quarter.

The company's bottom line took a hit, however, with net income of $62 million dow from last year's $76 million. This is partially owing to $18 million in tax expense, compared to $1 million of tax benefit last year.

Operating profit increased to $97 million from $94 million, while adjusted operating profit increased to $127 million from $107 million.

“Our strategy continues to drive improved results and I’m confident in the outlook for all of our businesses,” said Jennifer Scanlon, CEO-Elect. “I believe that our expected strong free cash flow, high return opportunities to reinvest back into our business and a clear focus as a leading manufacturer of building products and innovative solutions for our industry around the world will continue to generate great value for all USG stakeholders.”