USG Corp. (NYSE:USG), Chicago, IL, reported sales for the third quarter of $758 million, a decrease of 7.8 percent from the same period a year ago. The building products company recorded a net loss of $100 million, compared to a year ago loss of $94 million.
For the first nine months, sales were $2.24 billion, down 10.8 percent from last year. Net loss for the period was $284 million, compared to a loss of $189 million a year ago.
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\”Our third quarter results reflect continued weak market conditions and extraordinarily low shipping volumes,\” CEO William C. Foote said. \”Nonetheless, operating margins for our domestic wallboard business were stable, our ceilings business had another strong quarter and the performance of our distribution business continued to improve despite ongoing weakness in commercial construction.\”
L&W Supply Corp, and its subsidiaries, which comprise USG’s building products distribution segment, reported third quarter 2010 sales of $281 million, down 15 percent compared to the third quarter of 2009. Third quarter sales reflected lower volumes in all major product categories primarily due to continued weakness in residential and commercial construction.
L&W Supply reported an operating loss of $24 million for the third quarter of 2010, including $5 million in restructuring charges. This compares to an operating loss of $73 million for the third quarter of 2009, which included $41 million in goodwill and other intangible asset impairment charges and $8 million in restructuring charges.
During the third quarter of 2010, L&W Supply re-opened 2 distribution centers and opened one new center. As of September 30, 2010, L&W Supply operated 163 distribution centers.
USG’s North American Gypsum segment reported third quarter 2010 sales of $413 million and an operating loss of $43 million. In last year’s third quarter, the segment reported sales of $443 million and an operating loss of $31 million.
USG’s Worldwide Ceilings segment reported third quarter 2010 net sales of $174 million, up $1 million compared with third quarter of 2009. Operating profit was $21 million for the third quarter of 2010, unchanged compared to the third quarter of 2009.
