USG Swings To Q3 Profit, Shares Up

(RTTNews) - Shares of USG Corp. (USG) gained about six percent after the building materials supplier reported a swing to profit in the third quarter from a loss last year, driven mainly by revenue growth reflecting higher shipment and selling price.

USG, which provides gypsum wallboard and joint compounds, said its US gypsum wallboard shipments rose to 1.37 billion square feet from 1.05 billion square feet, while average wallboard price climbed to $154.04 per thousand square feet from $131.97 a year ago.

USG said sales for the third quarter rose 12 percent to $925 million from $828 million in the prior year. Analysts polled by Thomson Reuters expected revenues of $934.81 million for the period.

Commenting on the results, Chief Executive James Metcalf said, "We kept our focus on our core businesses and saw continued strong results in North America, and finally, we launched a dynamic new brand for USG."

Chicago-based USG reported a third-quarter profit of $23 million or $0.21 per share, compared to a loss of $29 million or $0.28 per share last year.

Adjusted net income was $24 million, compared to an adjusted net loss of $27 million last year.

On average, 18 analysts polled by Thomson Reuters expected earnings of $0.24 per share for the quarter. Analysts' estimates typically exclude special items.

USG is currently trading at $28.07, up $1.58 or 5.95%, on a volume of 1.31 million shares, on the NYSE.