USG swings to profit
USG Corp. reported net sales of $828 million for its third fiscal quarter, a 9% increase over net sales of $763 million in the same period a year ago. Operating profit for the third quarter, which ended Sept. 30, 2012, was $29 million, compared with a $79 million loss from continuing operations in the third quarter of 2011.
The third-quarter net loss from both continuing and discontinued operations was $29 million. This result compares with a $115 million net loss from both continuing and discontinued operations in the third quarter of 2011. During the third quarter, the company announced it had entered into a definitive agreement to sell its European operations. Although that sale has not yet been consummated, results from European operations have been reported as discontinued operations for the 2012 and 2011 periods. Those operations reported net sales of $27 million and operating profit of $1 million for the third quarter of 2012, and $29 million and $3 million, respectively, for the third quarter of 2011.
“Our innovative new products, modest demand improvement, new wallboard pricing strategy and recent restructuring efforts contributed to our third consecutive quarter of positive operating profit,” said James Metcalf, USG’s chairman, president and CEO. “We achieved continued wallboard volume growth, and price was essentially flat compared with the prior quarter, with any improvement offset by regional and channel mix and freight cost fluctuations.”
Selling the company’s European operations, Metcalf said, “will allow us to reallocate assets from a lower-growth market to joint ventures supporting higher-growth markets in India, which will allow us to diversify the company’s earnings and offset some of the cyclicality in our core businesses.”
Although wallboard demand remains significantly below historical averages, the company’s wallboard division, L&W Supply, experienced a 10% rise in same-store net sales at its branch locations. And its newer introductions to the market are doing well. According to the Chicago-based company, its Sheetrock brand Ultralight panels accounted for 47% of all USG wallboard shipments in the United States.
Weyerhaeuser to distribute WindsorOne
Weyerhaeuser Distribution has added the full line of WindsorOne trim and molding products to its offerings in California, where it will be the exclusive distributor of manufacturer’s products.
Weyerhaeuser is stocking and shipping the WindsorOne line from its distribution centers in Stockton, Fresno, Santa Clarita and Fontana.
This summer, Weyerhaeuser also announced it is distributing WindsorOne building materials in Texas.
Kodiak Building Partners acquires Great West Drywall Supply
Denver-based Kodiak Building Partners has acquired Great West Drywall Supply, a specialty distributor of drywall, steel framing, ceilings and accessories to contractors in the greater Denver market. The purchase price was not disclosed.
“We are very excited about bringing Todd Mills and the Great West team into the Kodiak portfolio,” said Kodiak CEO Paul Hylbert. “We expect the distribution of drywall and accessories to be a core part of our future growth.”
Great West has been privately owned by a small group of investors since its founding in 2002. The decision by the former ownership group to concentrate its efforts on its other portfolio investments led to the opportunity to sell the business to Kodiak.
“We’re pleased with the sale of our Great West business, in that it will allow us to concentrate on our much larger contracting business, maintain a supply relationship with Kodiak, and ensure that our people have the on-going support of an owner with a desire to grow this business,” said Denis Dieker, managing member and treasurer for the investment group.
The business will be moving to Barton Supply’s 20-acre facility in Aurora, Colo., from its current location in Greenwood Village, Colo. Todd Mills and his team will stay on as management.
In conjunction with the deal, Kodiak announced an expanded senior credit facility with Chicago-based Cole Taylor Business Capital. This facility will support the continued growth of Kodiak’s existing portfolio companies and future acquisitions.
Kodiak Building Partners is a private investment group with a focus on building products distribution. The company’s first investment, Barton Supply, serves professional builders and general contractors out of three locations along the Colorado Front Range with reinforcing products, structural steel and accessories. In July, Kodiak announced the purchase of Gulf and Basco, a specialty distributor of cabinets, appliances and windows serving the greater Houston market.