WASHINGTON (dpa-AFX) - USG Corp. (USG) Wednesday reported a swing to profit in the first quarter from a loss last year, as the building materials provider recorded a modest income tax benefit. Revenues increased four percent from last year mainly on improved U.S. Gypsum wallboard prices amid a recovery in the housing market, but was offset by interest and other expenses.
USG shares gained about six percent in afternoon trade on the New York Stock Exchange.
Chicago, Illinois-based USG reported quarterly net income of $2 million or $0.02 per share, compared with a net loss of $27 million or $0.26 per share last year.
Excluding items, adjusted earnings for the quarter were $1 million, compared to an adjusted net loss of $27 million in the first quarter last year.
On average, 17 analysts polled by Thomson Reuters expected earnings of $0.10 per share for the quarter. Analysts' estimates typically exclude special items.
Sales for the quarter climbed 4 percent to $814 million from $783 million in the prior year.
Analysts on consensus expected revenues of $864.23 million for the quarter.
'All segments showed improved results in the period, and our commitment to innovation and lowering our break-even are evident in our results,' said CEO James Metcalf.
U.S. Gypsum wallboard shipments for the quarter totaled 1.11 BSF, compared to 1.16 BSF a year ago, while average U.S. price improved to $153.07 per thousand square feet from $130.43.
Selling expense for the quarter totaled $73 million and interest expense was $50 million, leading to loss from continuing operations of $1 million, while the prior year posted a loss of $28 million. However, this was offset by an income tax benefit of $3 million.
USG stock is trading $27.05, up $1.50 or 5.87%, on a volume of 4.3 million shares.
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