USG CORP

USG CORP

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Company Overview
USG Corporation (USG) is a publicly quoted holding company with active interests in the production of construction materials. The company was formed in 1984 as a reverse merger in which United States Gypsum Company became one of just nine operating subsidiaries. The registered head office of the company is located in Chicago, United States of America.
USG is the world’s leading producer of gypsum wallboard, joint compound and a vast array of related products for the construction and remodeling industries. The company is also the global leader in the production of ceiling suspension systems and recognized as the premier acoustical panel and specialty ceiling systems innovator. Its products provide creative building solutions that set new standards for productivity and efficiency. The company’s products are used in major commercial developments and residential housing to simple home improvements. USG’s major brands include Form & Function publication, USG, USG Action Software, USG Ceilings ceiling tiles and panels, Sheetrock Brand gypsum panels and Durock Brand cement board.
Through its subsidiary L&W Supply, USG distributes drywall and related building products. In addition, L&W serves the professional contractor through a network of nearly 200 locations.
Business Summary
USG Corporation (USG), through its subsidiaries, is a manufacturer and distributor of building materials, producing a range of products for use in new residential, new nonresidential, and residential and nonresidential repair and remodel construction, as well as products used in certain industrial processes. The Company is organized into three reportable segments: North American Gypsum, Building Products Distribution and Worldwide Ceilings, the net sales of which accounted for approximately 47%, 35% and 18%, respectively, of its consolidated net sales during the year ended December 31, 2009. North American Gypsum manufactures and markets gypsum and related products in the United States, Canada and Mexico. Building Products Distribution consists of L&W Supply, a specialty building products distribution business in the United States. Worldwide Ceilings segment manufactures and markets interior systems products worldwide.
Description and history
USG Corporation (USG), through its subsidiaries, is a manufacturer and distributor of building materials, producing a range of products for use in new residential, new nonresidential, and residential and nonresidential repair and remodel construction, as well as products used in certain industrial processes. The Company is organized into three reportable segments: North American Gypsum, Building Products Distribution and Worldwide Ceilings, the net sales of which accounted for approximately 47%, 35% and 18%, respectively, of its consolidated net sales during the year ended December 31, 2009.

North American Gypsum

North American Gypsum manufactures and markets gypsum and related products in the United States, Canada and Mexico. It includes United States Gypsum Company (U.S. Gypsum), in the United States, the gypsum business of CGC Inc., (CGC), in Canada, and USG Mexico, S.A. de C.V., (USG Mexico), in Mexico. U.S. Gypsum is a manufacturer of gypsum wallboard in the United States and accounted for approximately 27% of total domestic gypsum wallboard sales during 2009. CGC is a manufacturer of gypsum wallboard in eastern Canada. USG Mexico is a manufacturer of gypsum wallboard in Mexico.

North American Gypsum’s products are used in a variety of building applications to finish the interior walls, ceilings and floors in residential, commercial and institutional construction and in certain industrial applications. These products provide aesthetic, as well as sound-dampening, fire-retarding, abuse-resistance and moisture-control value. The majority of these products are sold under the SHEETROCK brand name. A line of joint compounds used for finishing wallboard joints is also sold under the SHEETROCK brand name. The DUROCK line of cement board and accessories provides water-damage-resistant and fire-resistant assemblies for both interior and exterior construction. The FIBEROCK line of gypsum fiber panels includes abuse-resistant wall panels and floor underlayment, as well as sheathing panels usable as a substrate for exterior systems. The SECUROCK line of products includes glass mat sheathing used for building exteriors and gypsum fiber panels used as roof cover board. The LEVELROCK line of poured gypsum underlayments provides surface leveling and enhanced sound performance for residential and commercial installations.

USG also produces a variety of construction plaster products used to provide a custom finish for residential and commercial interiors. Like SHEETROCK brand gypsum wallboard, these products provide aesthetic, sound-dampening, fire-retarding and abuse-resistance value. Construction plaster products are sold under the brand names RED TOP, IMPERIAL, DIAMOND and SUPREMO. It also produces gypsum-based products for agricultural and industrial customers to use in a number of applications, including soil conditioning, road repair, fireproofing and ceramics.

North American Gypsum manufactures products at 41 plants. North American Gypsum’s plants are located throughout the United States, Canada and Mexico. Its gypsum products are distributed through its wholly owned subsidiary, L&W Supply Corporation, and its subsidiaries (L&W Supply), other specialty wallboard distributors, building materials dealers, home improvement centers and other retailers, and contractors.

In this segment the Company competes with National Gypsum Company, CertainTeed Corporation, Georgia-Pacific, Eagle Materials Inc., Temple-Inland Forest Products Corporation, Lafarge North America Inc., PABCO Gypsum, CertainTeed Corporation, Panel Rey, S.A. and Comex-Lafarge.

Building Products Distribution

Building Products Distribution consists of L&W Supply, a specialty building products distribution business in the United States. During 2009, L&W Supply distributed approximately 11% of all gypsum wallboard in the United States, including approximately 36% of United States. Gypsum’s wallboard production. L&W Supply stocks a range of construction materials. L&W Supply specializes in the distribution of gypsum wallboard (which accounted for 33% of its 2009 net sales), joint compound and other gypsum products manufactured by U.S. Gypsum and others. It also distributes products manufactured by USG Interiors, Inc. (USG Interiors), such as acoustical ceiling tile and grid, as well as products of other manufacturers, including drywall metal, insulation, roofing products and accessories. L&W Supply leases approximately 90% of its facilities from third parties. Typical leases have terms of five years and include renewal options.

The Company competes with ProBuild Holdings Inc., KCG, Inc. and Allied Building Products Corporation.

Worldwide Ceilings

USG’s Worldwide Ceilings segment manufactures and markets interior systems products worldwide. It includes USG Interiors, the international interior systems business managed as USG International, and the ceilings business of CGC. Worldwide Ceilings is a supplier of interior ceilings products used primarily in commercial applications. Worldwide Ceilings manufactures ceiling tile in the United States and ceiling grid in the United States, Canada, Europe and the Asia-Pacific region. It markets ceiling tile and ceiling grid in the United States, Canada, Mexico, Europe, Latin America and the Asia-Pacific region.

Its integrated line of ceilings products provides qualities, such as sound absorption, fire retardation and convenient access to the space above the ceiling for electrical and mechanical systems, air distribution and maintenance. USG Interiors’ brand names include the AURATONE and ACOUSTONE brands of ceiling tile and the DONN, DX, FINELINE, CENTRICITEE, CURVATURA and COMPASSO brands of ceiling grid.

The Company’s principal competitors in ceiling grid include WAVE, Armstrong World Industries, Inc., Chicago Metallic Corporation, OWA Faserplattenwerk GmbH, CertainTeed Corporation and AMF Mineralplatten GmbH Betriebs KG.

Formed as a reverse merger in which United States Gypsum Company became one of just nine operating subsidiaries

Business Line
Holding company with active interests in the production of construction materials
Subsidiary
ALL INTERIOR SUPPLY OF ORLANDO INC
Advisor
DELOITTE & TOUCHE LLP
IPO date
1/29/1931
US SIC Code
3275
Company Address
550, West Adams Street

City province or state postal code
60661, CHICAGO, IL
Phone: +1 312 436 4000
Fax:
Country address: UNITED STATES OF AMERICA
Website url: www.usg.com