DOW JONES NEWSWIRES
USG Corp.'s (USG) second-quarter loss widened, missing
expectations, on charges and weak sales across all its divisions as
the housing market remains weak.
Home builders and suppliers continue to suffer during the global
recession as foreclosures and inventories mount, home prices keep
declining and lending standards remain extremely tight. Little hope
of relief is seen this year.
Shares were recently down 5.9% at $11.40 in premarket
trading.
Chairman and Chief Executive William Foote said revenue in all
segments was under pressure because of "significant declines in
residential and commercial construction activity in the U.S. and
abroad."
He added in the U.S., the company's largest markets - new
residential and home repair and modeling - seem to be stabilizing,
while the commercial market is still declining.
The company posted a loss of $53 million, or 53 cents a share,
compared with a year-earlier loss of $37 million, or 37 cents a
share. The results included 12 cents a share in the latest quarter
and 13 cents last year in restructuring charges and
write-downs.
Revenue decreased 34% to $829 million.
Analysts surveyed by Thomson Reuters expected a loss of 37 cents
a share on revenue of $956 million.
Gross margin rose to 6.2% from 6.1%.
Losses in the North American gypsum business narrowed as sales
slid 29% amid restructuring charges. The L&W Supply building
unit's sales fell 38% as the unit swung to a loss, while the
worldwide ceiling segment's sales fell 27% as operating profit
dropped 40%.
-By Kerry Grace Benn, Dow Jones Newswires; 212-416-2353;
kerry.benn@dowjones.com