USG Reports Third Quarter 2011 Results
“Many of our key markets continue to experience recessionary levels of demand that are near record lows,” said USG’s President and CEO James S. Metcalf. “To accomplish both our short-term objective of returning the company to an operating profit and our longer term aspiration of reducing volatility in our earnings, we will continue to execute our three strategic priorities: strengthening core businesses, diversifying earnings and differentiating USG through innovation. We remain confident that by pursuing these strategies USG will remain a leading building solutions provider in its key product categories and markets.”
The corporation’s adjusted operating loss was $17 million in the third quarter of 2011, compared to $23 million in the third quarter of 2010. Adjusted operating loss excludes restructuring charges and non-cash long-lived asset impairment charges. The majority of these charges in the third quarter of 2011 were non-cash and primarily relate to the planned closure of a gypsum quarry and ship loading facility in Windsor, Nova Scotia, Canada that were idled in the first quarter of this year. This action was taken as part of the company's objective to adapt operations to market conditions. For information regarding the amounts of the 2011 and 2010 charges, please see the Reconciliation of Adjusted Operating Loss to Reported GAAP Operating Loss schedule attached to this press release.
For the first nine months of 2011, the corporation reported net sales of $2.3 billion and a net loss of $290 million, or $2.80 per share based on 103.6 million average shares outstanding. For the first nine months of 2010, net sales were $2.2 billion and the net loss was $284 million, or $2.85 per diluted share based on 99.7 million average shares outstanding. The corporation's results for the first nine months of 2011 include restructuring and long-lived asset impairment charges of $70 million compared with $54 million for the first nine months of 2010.
Consolidated Business Highlights:
- Sales of $792 million compared to $758 million
- Operating loss of $76 million compared to $58 million
- Adjusted operating loss of $17 million compared to $23 million
Business Unit Highlights:
- U.S. Gypsum wallboard shipments totaled 1,046 MMSF vs. 1,028 MMSF
- U.S. Gypsum average wallboard price of $111.66 per thousand square feet vs. $114.45
- Worldwide Ceilings operating profit of $25 million compared to $21 million
- L&W operating loss of $17 million compared to $24 million