USG's building materials segment and the seventh-largest company in the 2014 Prosales 100, L&W Supply, posted a $4 million operating profit in the third quarter of 2014 on net sales of $359 million, compared to an operating profit of $3 million and $331 million in net sales one year ago.
Overall, USG posted an operating profit of $22 million on total net sales of $972 million, a decline over the company's 2Q 2013 operating profit of $75 million, but a gain over its 3Q 2013 net sales and $925 million. Part of the reason for the decline in operating profit is a $48 million class-action lawsuit settlement the company made in the
"It is very disappointing to settle this lawsuit when we strongly believe we have done nothing wrong,” said James Metcalf, USG's president and CEO. “However, we have to be realistic about the cost and risk a lawsuit like this creates for USG. Settling allows us to put this issue behind us and continue to focus on serving our customers. USG has always established its prices and pricing policies independently and in full compliance with the law. In addition, we still expect to achieve our de-levering targets over the planning horizon."
The company posted an adjusted operating profit of $112 million, a gain over last year's 3Q 2013 adjusted operating profit of $75 million.
"During the third quarter, we generated our strongest quarterly adjusted EBITDA since 2006,” said