USG Q1 Profit Surges, But Misses View - Update

(RTTNews) - Building materials supplier USG Corp. (USG), Thursday reported a surge in profit for the first quarter, primarily on increased shipments and higher selling price. Nonetheless, both earnings and revenues for the quarter came in short of Wall Street expectations, sending USG shares down by about five percent.

Commenting on the results, Chief Executive James Metcalf said, "Despite the harsh winter conditions across most of the United States during the first quarter, we delivered positive operating results and net income."

USG, which provides gypsum wallboard and joint compounds, said its US gypsum wallboard shipments rose to 1.15 billion square feet from 1.11 billion square feet, while average wallboard price climbed to $166.66 per thousand square feet from $153.07 a year ago.

Net sales for the first quarter grew to $850 million from $814 million in the corresponding quarter last year. Fifteen analysts polled by Thomson Reuters had consensus revenue estimate of $879.24 million for the quarter.

Chicago, Illinois-based USG's first-quarter profit surged to $45 million or $0.32 per share from $2 million or $0.02 per share last year.

For the first quarter, the company recorded a gain on deconsolidation of subsidiaries and consolidated joint ventures of $27 million or $0.20 per share.

Adjusted earnings improved to $0.14 per share from $0.01 per share last year. On average, 19 analysts estimated earnings of $0.20 per share for the quarter. Analysts' estimates typically exclude special items.

USG is currently trading at $30.81, down $1.51 or 4.69%, on a volume of 3.66 million shares on the NYSE.