USG wraps up 2016 on a strong note

USG Corporation reported top-line growth during the fourth quarter and full fiscal year — and put itself on strong financial footing by paying off a large sum of debt.

Net sales for the quarter rose 2.2% to $734 million, with net income of $307 million down considerably from the previous year's $812 million.

The company recorded full-year sales of $3 billion in 2016 and net income of $510 million, up from net sales of $2.9 billion but down from net income of $991 million in 2015.

“We are in a stronger financial position than we have been in for many years,” said Jennifer Scanlon, president and CEO. “In 2016, we expanded adjusted operating margins in our Gypsum, Ceilings and USG Boral businesses. We finished the year on a high note by paying off $900 million of debt and today we announced a $250 million share repurchase program to return capital to our shareholders.”

The company also completed a sale of L&W Supply, its building product distribution business, to ABC Supply in October. The results for L&W counted as a discontinued operation in the fourth quarter and full year.

“2016 was a transformative year for USG Corporation,” Scanlon said. “With a strong balance sheet and a renewed focus on our core manufacturing business, we enter 2017 excited about the opportunities ahead and anticipating growth in every end market we serve.”