USG reports third-quarter earnings of $158 million, sales hit record of $1.34 billion

New York, Oct. 25 - USG Corp. recorded net earnings rose $68 million to $158 million in the third quarter compared to the same period of 2004.

Net sales rose $169 million to $1.344 billion, the highest quarterly figure ever for the Chicago-based building products company.

Operating profit for the quarter was $211 million, up from $148 million a year earlier.

Cash at Sept. 30 was $900 million, with a further $189 million of short-term marketable securities and $77 million of restricted cash.

USG said results were stronger in all its business segments, with record product shipments in the domestic wallboard business, higher profits in the worldwide ceilings business and double-digit percentage increases in sales and profits in the distribution business.

"We are pleased with the solid results achieved by all our businesses," said William C. Foote, USG's chairman, chief executive officer and president, in a news release. "Demand for our products remains strong and our strategic initiatives are succeeding. Our new capacity and products will better serve our customers as they strengthen and expand our operations. Combined with our cost reduction programs, these initiatives should position us for continued profitable growth.

"For the balance of the year, we are optimistic that conditions will remain positive for housing, our largest market; however, the operating environment still poses challenges, including persistent energy and raw material cost pressures."

For the first nine months of 2005, net sales were $3.804 billion, up from $3.34 billion for the same period in 2004. Net earnings were $345 million versus $227 million.

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