USG 1Q Loss Widens On Sales Drop

CHICAGO (AP) — Building products manufacturer USG Corp. said Tuesday its first-quarter loss widened, blaming the continued slumps in the housing market and commercial construction.

USG posted a loss of $42 million, or 42 cents per share, compared with a loss of $41 million, or 42 cents per share, in the year-ago period. Sales dropped 26 percent to $864 million from $1.17 billion in the year-ago period.

Analysts polled by Thomson Reuters expected a loss of 73 cents per share on $952.1 million in sales.

Company officials credited cost-cutting actions taken last year with helping offset the effects of an exceptionally weak housing market, a decline in commercial construction and shrinking international markets.

North American gypsum sales dropped 23 percent to $478 million, while building products distribution sales dropped 28 percent to $353 million and worldwide ceilings sales fell 19 percent to $171 million.

The recent quarter's results included $7 million, or 7 cents per share, in restructuring and asset impairment charges, while the year-ago quarter included $2 million, or 2 cents per share, in charges.

USG shares rose $1.53, or 16 percent, to $11.06 in morning trading.