In connection with the previously announced tender offer and consent solicitation relating to its 9.75 percent notes due 2014, USG announced preliminary, unaudited results for January and February 2012. For the two-month period, USG reported net sales of $516.9 million, operating profit of $5.7 million and a net loss of $30.5 million. For the comparable two-month period in 2011, USG reported net sales of $446.9 million, an operating loss of $46.8 million and a net loss of $82.3 million. The company attributes the improved year-over-year results primarily to increases in its U.S. average wallboard price and wallboard gross margin.
The manufacturer currently expects that operating results
for the month of March 2012 will reflect the continuing impact of the
above-mentioned wallboard price and gross margin increases. Complete results
for the first quarter are expected to be announced on April 17, and USG does
not intend to update the information in this release prior to that date.
The company also expects loans to and investments in joint
ventures to aggregate approximately $60 million in 2012, up from the previously
announced estimate of $18 million, as a result of contemplated further steps in
the implementation of its international growth strategy. USG expects to fund
the additional investments through future surplus asset sales and other
The preliminary, unaudited results and the expected March
results presented herein are based on currently available information. These
results have not been prepared in accordance with, and are subject to, USG’s
quarterly closing and review procedures and the regular quarterly review
process of its independent auditors. As a result, the information presented herein
is not necessarily indicative of actual results for the first quarter and is
subject to change.