Usg Corp (USG) SEC Filing 10-Q Quarterly report for the period ending Sunday, September 30, 2018

Exhibit 99.1

USG Corporation Reports Third Quarter 2018 Results

Price Improvement Offset by Cost Inflation

CHICAGO--(BUSINESS WIRE)--October 25, 2018--USG Corporation (NYSE:USG), an industry-leading manufacturer of building products and innovative solutions, today reported financial results for the third quarter of 2018. As compared to 2017’s third quarter, results for 2018’s third quarter are below:

• Net sales of $851 million up $56 million, or 7%
• Operating profit of $69 million down $22 million, or 24%
• Net income of $59 million down $7 million, or 11%
• Diluted EPS of $0.41 down $0.05, or 11%

As compared to 2017’s third quarter, non-GAAP financial measures for 2018’s third quarter are below:

• Adjusted operating profit of $90 million down $16 million, or 15%
• Adjusted net income of $65 million down $3 million, or 4%
• Adjusted diluted EPS of $0.45 down $0.02, or 4%

Consolidated Third Quarter Results

Third quarter 2018 net sales were $851 million on a consolidated basis, compared to $795 million in the third quarter of 2017. Operating profit decreased to $69 million from $91 million, while adjusted operating profit decreased to $90 million from $106 million in the third quarter of 2018 compared to the third quarter of 2017. The lower operating profit in the third quarter of 2018 was driven primarily by rising costs, including higher transportation costs coupled with higher planned SG&A costs to support USG’s Customer-First strategy.

USG recorded $59 million in net income, or $0.41 per diluted share, for the third quarter of 2018, compared to net income of $66 million, or $0.46 per diluted share, in the third quarter of 2017. On an adjusted basis, net income of $65 million, or $0.45 per diluted share, for the third quarter of 2018 decreased from $68 million, or $0.47 per diluted share, in the third quarter of 2017. A full reconciliation of GAAP to adjusted metrics is provided in the attached schedule.