USG Corporation Reports 2014 First Quarter Results
First Quarter 2014 vs. First Quarter 2013
Consolidated Business Highlights
- Sales increased 4 percent to $850 million
- Operating profit of $66 million compared to $49 million
- Adjusted operating profit of $69 million, including income from USG Boral Building Products of $3 million, compared to $51 million
- GAAP net income of $45 million compared to $2 million
- Adjusted net income of $19 million compared to $1 million
Business Unit Highlights
- U.S. Gypsum wallboard shipments totaled 1.15 BSF vs. 1.11 BSF
- U.S. Gypsum average wallboard price of $166.66 per thousand square feet vs. $153.07
- Worldwide Ceilings operating profit of $14 million compared to $27 million
- L&W Supply operating profit of $1 million compared to operating loss of $2 million
- USG Boral Building Products sales of $89 million and operating profit of $10 million
USG Corporation, a leading building products company, today reported its strongest first quarter results since 2007. First quarter 2014 net sales of $850 million are up 4 percent from first quarter 2013 net sales of $814 million. USG’s first quarter 2014 operating profit was $66 million compared to $49 million of operating profit in the first quarter of 2013. First quarter 2014 net income was $45 million or $0.32 per diluted share, or $0.33 per basic share. This result compares to net income of $2 million or $0.02 per diluted share, or $0.02 per basic share, in the first quarter of 2013.
“Despite the harsh winter conditions across most of the United States during the first quarter, we delivered positive operating results and net income,” said James S. Metcalf, chairman, president and CEO. “We also made significant progress with our Plan to Win by finalizing our joint venture with Boral and calling the remaining $75 million in 10% convertible notes.”
The corporation’s adjusted operating profit was $69 million in the first quarter of 2014, which includes equity method investment income of $3 million from USG Boral Building Products, compared to an adjusted operating profit of $51 million in the first quarter of 2013. Adjusted net income was $19 million in the first quarter of 2014 compared to an adjusted net income of $1 million in the first quarter of 2013. Adjusted net income in the first quarter of 2014 excluded, among other items, a $27 million gain on the deconsolidation of our contributed subsidiaries and consolidated joint ventures to the USG Boral Building Products joint venture.
The adjusted net income in the first quarter of 2013 excluded $2 million of restructuring charges and an income tax benefit of $3 million related to the reduction in valuation allowance for deferred tax assets. First quarter 2014 adjusted earnings per basic share was $0.14 compared to adjusted earnings per basic share of $0.01 during the first quarter of 2013. A full reconciliation of adjusted operating profit to operating profit, adjusted net income to net income, and adjusted earnings per basic share to earnings per basic share is set forth on a schedule attached hereto.
“We are confident that the recovery in our end-markets remains intact and our business is well positioned for growth as opportunity improves,” Metcalf said. “We believe that most of the volume lost in the first quarter due to the weather will be realized over the balance of the year.”