USG reports third-quarter net loss of $40 million
USG, the Chicago-based building products company, announced a net loss of $40 million for the third quarter, compared with net earnings of $7 million in the year-ago period.
Net sales were $1.2 billion for the quarter, down 8 percent from 1.3 billion in the same period last year.
The company’s consolidated third-quarter results included restructuring charges of $5 million, related to manufacturing plant shutdowns and the closure of distribution locations.
"Our focus on costs and efficiencies, including capacity closures and overhead reductions, has helped to mitigate the effects of the downturn in all our markets," said William C. Foote, USG chairman and CEO. "As conditions continue to deteriorate in the broader economy, we are preparing plans to significantly reduce costs further, improve operational efficiency and maintain our liquidity.”
USG's North American gypsum business recorded third-quarter net sales of $610 million, down 13 percent from last year. L&W Supply and its subsidiaries, which comprise USG's building products distribution business, saw net sales of $526 million, down 14 percent compared to the third quarter of 2007.