USG Corp. (NYSE: USG) reported second quarter sales of $769 million, a decline of 7.2 percent from the same period a year ago. The manufacturer and distributor of building material products recorded a net loss of $74 million, compared to a year-ago net loss of $53 million.
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For the first six months, sales were $1.49 billion, down 12.3 percent. Net loss was $184 million, compared to a year-ago net loss of $95 million.
\”Market conditions during the quarter were similar to the prior quarter and modestly better than the environment experienced last year, but demand remains exceptionally weak,\” CEO William C. Foote said. \”When the economy recovers and demand improves, we expect to achieve substantial operating leverage in our businesses.\”
USG’s building products distribution arm L&W Supply Corp. and its subsidiaries, No. 8 on the top 10 building materials/construction distributors, reported second quarter sales of $282 million, down 16 percent compared to the second quarter of 2009.
L&W Supply reported an operating loss of $22 million for the quarter, including $1 million of restructuring charges. During the second quarter, L&W Supply closed one distribution center.
USG’s North American Gypsum segment reported second quarter sales of $428 million and an operating loss of $11 million.
Second quarter sales for the Worldwide Ceilings segment were $172 million with an operating profit was $23 million.