USG Reports 2012 Fourth Quarter; Full Year Results
USG Corp. reported fourth quarter 2012 net sales in February from continuing operations of $815 million, up 12 percent from fourth quarter 2011 net sales from continuing operations of $726 million. The corporation’s fourth quarter operating loss from continuing operations was $8 million compared to a $43 million operating loss from continuing operations in the fourth quarter of 2011. The fourth quarter 2012 net loss was $13 million, or $0.11 per share. This result compares to a $100 million net loss in the fourth quarter of 2011 or $0.95 per share.
“Our wallboard results were the strongest we have seen in over three years, and we achieved our fourth consecutive quarter of positive adjusted operating profit,” said James S. Metcalf, chairman, president and CEO. “The results for Worldwide Ceilings and L&W Supply show the commercial markets remain choppy but we continue to see signs of a housing recovery.”
The corporation’s adjusted operating profit from continuing operations was $5 million in the fourth quarter of 2012, which compares to an adjusted operating loss from continuing operations of $38 million in the fourth quarter of 2011. A reconciliation of adjusted operating profit to operating profit is set forth on a schedule attached hereto. The operating profit from continuing operations in the fourth quarter of 2012 includes $13 million in restructuring and long-lived asset impairment charges.
The corporation recorded full year 2012 net sales from continuing operations of $3.2 billion, an operating profit from continuing operations of $73 million and a net loss of $126 million. For the full year 2011, net sales from continuing operations were $2.9 billion, the operating loss from continuing operations was $206 million and net loss was $390 million.
During the third quarter, USG announced it had entered into a definitive agreement to sell its European operations. This transaction was completed in December 2012, resulting in a gain on sale of $55 million. Results from European operations have been reported as discontinued operations for all periods presented. Those operations reported net sales of $106 million and operating profit of $7 million for 2012, and $114 million and $9 million, respectively, for 2011.
“While I am pleased with the progress on ‘Our Plan to Win’ in 2012, there is more work to be done,” Metcalf said. “Our focus remains on achieving positive net earnings, and I look forward to continued growth in 2013.”
Consolidated Business Highlights (continuing operations)
- Sales increased 12 percent to $815 million
- Operating loss of $8 million compared to operating loss of $43 million
- Adjusted operating profit of $5 million compared to adjusted operating loss of $38 million
Business Unit Highlights (continuing operations)
- U.S. Gypsum wallboard shipments totaled 1.22 BSF vs. 1.09 BSF
- U.S. Gypsum average wallboard price of $132.26 per thousand square feet vs. $112.59
- Worldwide Ceilings operating profit decreased 18 percent to $14 million
- L&W Supply same store net sales increased 13 percent
- SHEETROCK Brand UltraLight Panels accounted for 49 percent of all USG wallboard shipments in the United States