The 2020 Mid-Year Economic Update_long

USG Third-Quarter Sales Up 5%

Sales for L&W Supply grew 8 percent for the quarter.

USG Corp. (NYSE: USG), Chicago, IL, reported sales for the third quarter of $972 million, up 5 percent from the same period a year ago. The company recorded a net loss of $11 million for the period, compared to profit of $23 million a year ago.  

L&W Supply, USG's distribution business, reported sales of $359 million for the quarter, a year-over-year increase of 8 percent. Operating profit grew 33 percent to $4 million.

For the first nine months, sales for USG were $2.8 million, a year-over-year increase of 4 percent. Profit grew 82 percent to $91 million.

L&W Supply sales for the first nine months grew 8 percent to $1 billion. Operating profit was $9 million, compared to $2 million a year ago.

During the third quarter, USG reached an agreement in principle to settle all claims made in the direct and indirect purchaser class actions consolidated in the lawsuit, In re: Domestic Wallboard Antitrust Litigation, MDL No. 2437, pending in the United States District Court for the Eastern District of Pennsylvania. Pursuant to the agreement in principle to settle, which is subject to finalization of a settlement agreement and court approval, USG will make a payment of $48 million. USG strongly denies any wrong-doing for the claims made in the lawsuits, but settled to avoid the expense, distraction and risk of further litigation. USG expects to make this cash payment within the next twelve months, while recording the $48 million charge in the third quarter of 2014.

“It is very disappointing to settle this lawsuit when we strongly believe we have done nothing wrong,” said James Metcalf, president and CEO. “However, we have to be realistic about the cost and risk a lawsuit like this creates for USG.”

About the Author
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

By subscribing, you are agreeing to MDM’s Privacy Policy.

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

0

articles left

This is your last free article

Subscribe to MDM Premium today and get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.