USG 3Q Loss Widens On Higher Charges, Falling Revenue
DOW JONES NEWSWIRES
USG Corp.'s (USG) third-quarter loss widened as the building-products company
reported higher charges and slumping revenue.
Shares dropped 4.9% to $16 in premarket trading as the results came in below
analysts' expectations. As of Tuesday's close, the stock had doubled this year.
Home builders and suppliers have suffered during the global recession as
foreclosures and inventories mount, home prices decline and lending standards
remain tight. In response, USG has trimmed costs. On Wednesday, Chairman and
Chief Executive William C. Foote said the near-term outlook remained
challenging.
USG, which makes and sells building materials such as gypsum wallboard and
ceiling grid and tile, reported a loss of $94 million, or 96 cents a share,
compared with a year-earlier loss of $36 million, or 36 cents a share. The
latest results included 43 cents of restructuring charges and write-downs, while
the prior year had 3 cents.
Revenue slumped 32% to $822 million.
Analysts polled by Thomson Reuters expected a per-share loss of 40 cents on
revenue of $873 million.
Gross margins narrowed to 4.6% from 5.3%.
In the North American gypsum business, sales slid 27% but the operating loss
narrowed. The L&W Supply building unit's sales declined 37% as the unit again
swung to a loss, while the worldwide ceiling segment's sales dropped 24% as
operating profits fell 19%.
-By John Kell, Dow Jones Newswires; 212-416-2480; john.kell@dowjones.com
(END) Dow Jones Newswires
10-21-090910ET
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