USG Reports First Quarter Results
USG Corp. recently reported first quarter results in line with expectations outlined by the company in March and earlier last month. The corporation reported net sales of $826 million and net earnings of $11 million, declines of 16 and 90% respectively, from the year before. Diluted earnings per share for the first quarter of 2001 were $0.25 compared with $2.18 in the same period a year ago. "Our first quarter results reflect the fact that the business environment for our largest unit, United States Gypsum Co., remains very challenging," commented William C. Foote, chairman, president and CEO. "Continuing increases in wallboard industry capacity, coupled with a further decline in demand, depressed pricing during the quarter. Significantly higher energy costs, especially natural gas prices, and harsh winter weather also held down results."
Several of these factors also negatively affected results in USG's second and third largest operating subsidiaries, L&W Supply Corp. and USG Interiors, Inc., respectively.
For more information, visit http://www.usg.com.