USG Reports Third Quarter Results
November 1, 2001
USG Corp. recently reported third quarter 2001 net sales of $842 million and net earnings of $27 million. This compared with net sales of $956 million and net earnings of $65 million in the third quarter last year. Diluted earnings per share for the third quarter of 2001 were $0.61, compared with $1.48 a year ago. This year's third quarter results benefited from the reversal of certain restructuring-related charges taken last year. The reversals increased net earnings by $7 million, or $0.15 per share, in the quarter. The decline in sales and earnings was primarily due to lower selling prices for SHEETROCK(R) brand gypsum wallboard sold by USG's United States Gypsum Co. subsidiary. Prices have fallen considerably over the past two years as the gypsum wallboard industry has added significant amounts of new capacity. Market conditions did improve somewhat during the third quarter as demand grew and some excess industry capacity closed, allowing the company to raise prices for the first time since the end of 1999. Net sales for the first nine months of 2001 were $2,474 million, versus net sales of $2,940 million for the same period in 2000. Net earnings for the first nine months were $25 million compared to $264 million for that period last year. Diluted earnings per share for the first nine months of 2001 were $0.57, compared to $5.66 for the first nine months of 2000.
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