USG Corp. (USG, Financial) filed Quarterly Report for the period ended 2009-06-30.
USG Corp. through its subsidiaries is a leading manufacturer and distributor of building materials producing a wide range of products for use in new residential new nonresidential and repair and remodel construction as well as products used in certain industrial processes. USG\'s operations are organized into three operating segments: North American Gypsum Worldwide Ceilings and Building Products Distribution. USG Corp. has a market cap of $1.38 billion; its shares were traded at around $13.93 with and P/S ratio of 0.3.
Selling and administrative expenses decreased in the second quarter and first six months of 2009 compared with the respective 2008 periods primarily due to the continuation of a company-wide emphasis on reducing expenses, including the impact of salaried workforce reductions implemented in 2008 and 2009. Selling and administrative expenses totaled $72 million in the second quarter of 2009 compared with $94 million in the second quarter of 2008, a decrease of $22 million, or 23%. As a percentage of net sales, selling and administrative expenses were 8.7% for the second quarter of 2009 and 7.5% for the second quarter of 2008. Selling and administrative expenses totaled $152 million in the first six months of 2009 compared with $196 million in the first six months of 2008, a decrease of $44 million, or 22%. As a percentage of net sales, selling and administrative expenses were 9.0% for the first six months of 2009 and 8.1% for the first six months of 2008. The increases in the percentages for the 2009 periods were attributable to the lower levels of net sales in those periods compared to the 2008 periods.
Second quarter restructuring and long-lived asset impairment charges totaled $19 million ($12 million after-tax, or $0.12 per diluted share). The pretax charge consisted of $6 million for severance, $5 million for lease terminations, $3 million for asset impairments and $5 million for the write-off of repair parts and other exit costs.
Total restructuring and long-lived asset impairment charges for the first six months of 2009 were $29 million pretax ($18 million after-tax, or $0.18 per diluted share). This amount included the $19 million of charges described above for the second quarter and $10 million of charges recorded in the first quarter of 2009, of which $7 million related to leased space that we no longer occupy in our corporate headquarters, $2 million was for severance and $1 million was for costs related to production facilities that were temporarily idled or permanently closed prior to 2009.
Interest expense was $36 million in the second quarter of 2009 compared with $21 million in the second quarter of 2008. This increase primarily reflected a higher level of borrowings in the second quarter of 2009. Interest expense was $78 million in the first six months of 2009 compared with $38 million in the first six months of 2008. This increase primarily reflected a higher level of borrowings in the first six months of 2009 and a pretax charge of $7 million in the first quarter of 2009 to write-off deferred financing fees in connection with the amendment and restatement of our credit agreement.
A net loss of $53 million, or $0.53 per diluted share, was recorded for the second quarter of 2009 compared with a net loss of $37 million, or $0.37 per diluted share, for the second quarter of 2008. A net loss of $95 million, or $0.95 per diluted share, was recorded for the first six months of 2009 compared with a net loss of $78 million, or $0.79 per diluted share, for the first six months of 2008.
Read the The complete ReportUSG is in the portfolios of Donald Yacktman of Yacktman Asset Management Co., Prem Watsa of Fairfax Financial Holdings, Inc., Wallace Weitz of Weitz Wallace R & Co, Warren Buffett of Berkshire Hathaway, Brian Rogers of T Rowe Price Equity Income Fund, Brian Rogers of T Rowe Price Equity Income Fund, Irving Kahn of Kahn Brothers & Company Inc..
USG Corp. through its subsidiaries is a leading manufacturer and distributor of building materials producing a wide range of products for use in new residential new nonresidential and repair and remodel construction as well as products used in certain industrial processes. USG\'s operations are organized into three operating segments: North American Gypsum Worldwide Ceilings and Building Products Distribution. USG Corp. has a market cap of $1.38 billion; its shares were traded at around $13.93 with and P/S ratio of 0.3.
Highlight of Business Operations:
Consolidated net sales in the second quarter of 2009 were $829 million, down 34% from the second quarter of 2008. An operating loss of $40 million and a net loss of $53 million, or $0.53 per diluted share, were incurred in the second quarter of 2009. These results compared with an operating loss of $39 million and net loss of $37 million, or $0.37 per diluted share, in second quarter of 2008. Financial information for the second quarter of 2008 has been retrospectively adjusted for our change in the fourth quarter of 2008 from the last-in, first-out method to the average cost method of inventory accounting.Selling and administrative expenses decreased in the second quarter and first six months of 2009 compared with the respective 2008 periods primarily due to the continuation of a company-wide emphasis on reducing expenses, including the impact of salaried workforce reductions implemented in 2008 and 2009. Selling and administrative expenses totaled $72 million in the second quarter of 2009 compared with $94 million in the second quarter of 2008, a decrease of $22 million, or 23%. As a percentage of net sales, selling and administrative expenses were 8.7% for the second quarter of 2009 and 7.5% for the second quarter of 2008. Selling and administrative expenses totaled $152 million in the first six months of 2009 compared with $196 million in the first six months of 2008, a decrease of $44 million, or 22%. As a percentage of net sales, selling and administrative expenses were 9.0% for the first six months of 2009 and 8.1% for the first six months of 2008. The increases in the percentages for the 2009 periods were attributable to the lower levels of net sales in those periods compared to the 2008 periods.
Second quarter restructuring and long-lived asset impairment charges totaled $19 million ($12 million after-tax, or $0.12 per diluted share). The pretax charge consisted of $6 million for severance, $5 million for lease terminations, $3 million for asset impairments and $5 million for the write-off of repair parts and other exit costs.
Total restructuring and long-lived asset impairment charges for the first six months of 2009 were $29 million pretax ($18 million after-tax, or $0.18 per diluted share). This amount included the $19 million of charges described above for the second quarter and $10 million of charges recorded in the first quarter of 2009, of which $7 million related to leased space that we no longer occupy in our corporate headquarters, $2 million was for severance and $1 million was for costs related to production facilities that were temporarily idled or permanently closed prior to 2009.
Interest expense was $36 million in the second quarter of 2009 compared with $21 million in the second quarter of 2008. This increase primarily reflected a higher level of borrowings in the second quarter of 2009. Interest expense was $78 million in the first six months of 2009 compared with $38 million in the first six months of 2008. This increase primarily reflected a higher level of borrowings in the first six months of 2009 and a pretax charge of $7 million in the first quarter of 2009 to write-off deferred financing fees in connection with the amendment and restatement of our credit agreement.
A net loss of $53 million, or $0.53 per diluted share, was recorded for the second quarter of 2009 compared with a net loss of $37 million, or $0.37 per diluted share, for the second quarter of 2008. A net loss of $95 million, or $0.95 per diluted share, was recorded for the first six months of 2009 compared with a net loss of $78 million, or $0.79 per diluted share, for the first six months of 2008.
Read the The complete ReportUSG is in the portfolios of Donald Yacktman of Yacktman Asset Management Co., Prem Watsa of Fairfax Financial Holdings, Inc., Wallace Weitz of Weitz Wallace R & Co, Warren Buffett of Berkshire Hathaway, Brian Rogers of T Rowe Price Equity Income Fund, Brian Rogers of T Rowe Price Equity Income Fund, Irving Kahn of Kahn Brothers & Company Inc..
