L&W Supply, the drywall specialty company that ranks 9th on the ProSales 100, recorded an operating profit of $15 million in the second quarter, up 66% from the year-earlier period, on a 6.0% rise in sales to $386 million.
The results were part of parent company USG's earnings report, which was issued today.
Operating margins improved 140 basis points to 3.9% in the second quarter, USG reported. L&W's same-store sales and wallboard volumes both increased 8%. USG noted that prices for its wallboard were down 1% from 2015's second quarter.
Chicago-based L&W reported $1.43 billion in sales last year, 98% of it to pros. As of Jan 1 it had 142 branches nationwide and just over 2,000 employees.
James Metcalf, USG's chairman, president and CEO, said he's please with L&W's progress over a much longer term than just the second quarter.
"There's been a nice margin increase from the last five quarters," Metcalf told analysts in a conference call to discuss the result. "I think, we started out with margin of a 0.5%, and we're almost at 4% where that's not where we need to be. But we have some very specific initiatives ... around inventory and truck utilization. We've right-sized the organization. ... If you look at our year-on-year progress, actually we've done everything that we've mentioned to you and we're pleased with the results."