USG Corp. (NYSE: USG), Chicago, IL, reported sales for fourth quarter 2009 of $720 million, a decline of 26.6% from fourth quarter 2008. The manufacturer and distributor of building products recorded a loss of $958 million, compared to loss of $349 million a year ago.
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Sales for 2009 were $3.24 million, down 29.8% from the prior year. The full year loss was $787 million, compared to loss in 2008 of $463 million.
\”We anticipated very difficult market conditions in 2009 and took action accordingly,\” CEO William C. Foote said. \”Structural cost reduction initiatives and aggressive management of product margins helped to mitigate the impact of exceptionally weak demand.\”
L&W Supply Corp. and its subsidiaries, which comprise USG’s building products distribution segment, reported fourth quarter 2009 sales of $270 million, down 38% compared to the fourth quarter of 2008. The decline reflects lower volumes in all major product categories as a result of weaker commercial and residential construction demand. L&W Supply reported an operating loss of $63 million for the fourth quarter of 2009 compared to an operating loss of $256 million for last year’s fourth quarter.
In order to reduce its cost structure, L&W Supply closed 37 locations in 2009 and significantly reduced other costs. As of Dec. 31, L&W operated 164 distribution centers in 37 states.
USG’s North American Gypsum segment reported fourth quarter sales of $407 million, down from net sales of $505 million reported in last year’s fourth quarter. Operating profit was $63 million, which included $97 million from the settlement of litigation and restructuring and long-lived asset impairment charges of $1 million. North American Gypsum reported an $87 million operating loss, in the fourth quarter of 2008.
USG’s Worldwide Ceilings segment reported fourth quarter sales of $146 million, down 14.6% from a year ago. Operating profit was $5 million, compared to a $12 million operating loss in the fourth quarter of 2008.
