USG Expects Q3 Profit; To Form JV With Boral - Quick Facts

(RTTNews) - USG Corp. (USG), a building products company, announced it expects to report third-quarter net sales of approximately $925 million, net income of approximately $23 million, and net income per share of approximately $0.21. For the three-month comparative period in 2012, net sales were $828 million, and net loss was $29 million or $0.28 per share.

The company attributed the year over year improved results to better wallboard price and volume and positive operating results at L&W Supply, partially offset by higher SG&A expense as expected and lower profitability from its shipping company, GTL, due to timing of shipments in the second half of the year.

Analysts polled by Thomson Reuters expect the company to report profit per share of $0.28 for the quarter. Analysts' estimates typically exclude special items. Analysts expect the company to report revenue of $939.17 million.

USG Corp. and Boral Limited announced they have entered into agreements to form a strategic joint venture to create a world-leading building business, USG Boral Building Products. The 50/50 joint venture will leverage the two companies' iconic brands, complementary geographic footprints and technological expertise to deliver a unique portfolio of building products across Asia, Australasia and the Middle East. In order to achieve an interest of 50% in the joint venture, USG will pay Boral total cash payments of up to $575 million.

Boral will contribute its Gypsum division to the joint venture, which includes its plasterboard operations in Australia and Asia. USG will contribute its Asian and Middle Eastern businesses, as well as exclusive access to its ceilings, cement board, fibre board, lightweight plasterboard and joint compound building products technologies in the joint venture's territory.