USG's Q3 net loss widens to US$115M from US$100M a year earlier as sales rise to US$792M from US$758M; company focused on strengthening core businesses, diversifying earnings, differentiation through innovation
October 20, 2011
– Third Quarter 2011 vs. Third Quarter 2010
Consolidated Business Highlights
“Many of our key markets continue to experience recessionary levels of demand that are near record lows,” said James S. Metcalf, President and CEO. “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.
A conference call is being held today at 10:00 A.M. Central Time during which USG senior management will discuss the corporation’s operating results. The conference call will be webcast on the USG Web site, www.usg.com, in the Investor Relations section. The dial-in number for the conference call is 1-866-352-2116 for participants in the United States (1-630-691-2782 for callers from other countries), and the pass code is 30907978. After the live webcast, a replay of the webcast will be available on the USG Web site. In addition, a telephonic replay of the call will be available until Friday, October 28, 2011. The replay dial-in number is 1-888-843-7419 (1-630-652-3042 for international callers), and the pass code is 30907978.
USG Corporation is a manufacturer and distributor of high-performance building systems through its United States Gypsum Company, USG Interiors, Inc., L&W Supply Corporation and other subsidiaries. Headquartered in Chicago, USG’s worldwide operations serve the residential and non-residential construction markets, repair and remodel construction markets, and industrial processes. USG’s wall, ceiling, flooring and roofing products provide leading-edge building solutions for customers, while L&W Supply branch locations efficiently stock and deliver building materials nationwide. For additional information, visit the USG Web site at www.usg.com.
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