Post by unlawflcombatnt on Jul 25, 2007 15:15:23 GMT -6
USG Corporation, a producer of wallboard used in home construction, has become another of the many casualties of the Housing Recession. Below are excerpts describing USG's woes, from a Chicago Tribune article titled
Housing crunch sends USG profits down 68%
By James P. Miller
July 24, 2007
"USG Corp., squeezed by the U.S. housing sector's continuing dropoff, this morning reported a 68 percent plunge in second-quarter earnings, on sales that dropped 10.5 percent.
As the leading producer of gypsum wallboard used extensively in home construction, the Chicago-based building products maker has historically been subject to the ups and downs of the residential-construction market. USG thrived during the building boom that began in 2004 and ran through mid-2006, when prices for its product were strong and its plants were running at full capacity nationwide.
But in the latest quarter "the housing market continued to deteriorate," noted USG Chairman and Chief Executive Officer William C. Foote.
In response, USG's net income dropped to $56 million, or 56 cents a diluted share, from the year-ago quarter's hefty $176 million, or $3.03 a share on fewer shares....
Sales fell to $1.41 billion in the latest quarter, from $1.57 billion a year ago.
"The housing recession is entering the second year of what is likely to be a multiyear downturn," said Foote, the CEO. It remains " burdened by an excess supply of new and existing unsold homes," and unusually large inventory of unsold homes promises to "depress new construction and put continued pressure on volumes and prices of building materials until the excess inventory is absorbed."....
USG...has cut more than 1,100 jobs over the past twelve months....
The full article can be found at
Housing crunch sends USG profits down 68%
Housing crunch sends USG profits down 68%
By James P. Miller
July 24, 2007
"USG Corp., squeezed by the U.S. housing sector's continuing dropoff, this morning reported a 68 percent plunge in second-quarter earnings, on sales that dropped 10.5 percent.
As the leading producer of gypsum wallboard used extensively in home construction, the Chicago-based building products maker has historically been subject to the ups and downs of the residential-construction market. USG thrived during the building boom that began in 2004 and ran through mid-2006, when prices for its product were strong and its plants were running at full capacity nationwide.
But in the latest quarter "the housing market continued to deteriorate," noted USG Chairman and Chief Executive Officer William C. Foote.
In response, USG's net income dropped to $56 million, or 56 cents a diluted share, from the year-ago quarter's hefty $176 million, or $3.03 a share on fewer shares....
Sales fell to $1.41 billion in the latest quarter, from $1.57 billion a year ago.
"The housing recession is entering the second year of what is likely to be a multiyear downturn," said Foote, the CEO. It remains " burdened by an excess supply of new and existing unsold homes," and unusually large inventory of unsold homes promises to "depress new construction and put continued pressure on volumes and prices of building materials until the excess inventory is absorbed."....
USG...has cut more than 1,100 jobs over the past twelve months....
The full article can be found at
Housing crunch sends USG profits down 68%