Wallboard plant in N.Y. to close temporarily; 3 distribution facilities to be shut
U.S. Gypsum Co. will temporarily close its wallboard manufacturing plant in Stony Point, N.Y., this June, while L&W Supply Corp. will close three more distribution facilities, parent company U.S. Corp. revealed in an SEC filing submitted late today.
USG will record charges worth $12.2 million related to the closures and workforce cuts. It didn't identify which L&W outlets would be closed. As of Dec. 31, it had 164 distribution centers in 37 states. According to its financial reports, L&W closed six locations in 2007, 54 in 2008, 15 in the first nine months of 2009, and another 22 in October 2009.
Last month, U.S. Gypsum Co. reported that its net sales dropped 32% in the fourth quarter to $315 million, but a $97 million litigation settlement enabled it to record a $57 million operating profit for the final three months of last year. Meanwhile, L&W and its subsidiaries recorded an even worse sales downturn: a 38% slump in the fourth quarter from the year-earlier period to reach $270 million
