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USG CORP. REPORTS 2 PERCENT INCREASE IN SALES AND 31 PERCENT INCREASE IN EBITDA DURING 1993 FIRST QUARTER

 /EDITOR'S NOTE: Due to USG's bankruptcy filing and its implications for financial reporting, USG will report EBITDA (earnings before interest, taxes, depreciation, depletion, amortization and other non- cash charges) as its basis for comparison since operating profit will no longer be a valid comparison./
 CHICAGO, April 23 /PRNewswire/ -- USG Corp. today reported first quarter EBITDA of $46 million and net sales of $436 million. These results compare with 1992 first quarter EBITDA of $35 million and net sales of $426 million.
 USG reported a net loss of $279 million for the first quarter of 1993 after interest expense and several one-time charges. This loss included pre-tax net interest expense of $73 million, a $69 million pre- tax charge for reorganization items related to the corporation's financial restructuring (the majority of these charges were paid prior to 1993), and an after-tax $150 million net one-time charge which reflects accounting changes due to the adoption of FASB 106 and FASB 109. A net loss of $50 million was reported for the first quarter of 1992.
 Commenting on the corporation's first quarter performance, USG Chairman Eugene B. Connolly said, "The substantial improvement in USG's EBITDA during the first quarter demonstrates that the operating foundation we have laid during the past several years will enable us to capitalize on the unfolding recovery in the construction markets."
 DOMESTIC OPERATIONS
 Although housing starts demonstrated some weakness in the first quarter due to weather-related aberrations, industry demand for gypsum products continues to improve. As a result, the gypsum industry operated at an 86 percent capacity utilization rate in the first quarter of 1993 vs. 82 percent during the first quarter of 1992.
 United States Gypsum Company reported higher selling prices for gypsum wallboard for the fourth consecutive quarter. U.S. Gypsum's average selling price of $74.98 per-thousand-square-feet was $7.20, or 10.6 percent, higher in the first quarter of 1993 than 1992.
 As a result of strong industry demand and steadily rising prices for gypsum wallboard and related products, EBITDA for the corporation's domestic gypsum business (primarily U.S. Gypsum) increased $8 million over the prior-year quarter.
 This improvement was partially offset by a slight decline in profitability by the corporation's domestic interior systems business, for which EBITDA declined by $1 million.
 NON-DOMESTIC OPERATIONS
 EBITDA for the corporation's Canadian operations (primarily CGC, a 76 percent-owned subsidiary) rose $2 million, primarily due to higher gypsum wallboard selling prices. USG's other foreign operations reported results which were comparable to 1992.
 USG Corp. is a Fortune 250 company whose subsidiaries are market leaders in their key products groups of gypsum wallboard, joint compound and related gypsum products, ceiling tile and grid and building products distribution.
 USG CORP.
 CONDENSED CONSOLIDATED STATEMENT OF EARNINGS
 (In millions of dollars except per-share figures)
 Three Months Ended March 31, 1993 1992
 Net sales $436 $426
 Gross profit 79 71
 Selling and administrative
 expenses 52 51
 Operating profit 27 20
 Interest expense, net 73 83
 Other expense, net 7 (2)
 Reorganization items (A) 69 -
 Taxes on income/(income
 tax benefit) 7 (11)
 Loss before cumulative effect of
 changes in accounting
 principles (129) (50)
 Cumulative effect of changes
 in accounting principles (B) (150) -
 Net loss (279) (50)
 Loss per common share:
 Loss before accounting
 changes (2.33) (0.89)
 Cumulative effect of changes
 in accounting principles (2.68) -
 Net loss per common share (5.01) (0.89)
 Average number of shares
 outstanding 55,755,021 55,784,995
 Calculation of EBITDA (C)
 Operating profit $27 $20
 Depreciation and depletion 15 14
 Other 4 1
 EBITDA 46 35
 (A) Includes restructuring fees and expenses related to investment banking services, bank negotiations and outside legal counsel. Also includes write-off of 1988 capitalized financing costs.
 (B) Reflects adoption of FASB 106, "Employers' Accounting for Postretirement Benefits Other Than Pensions" ($180 million expense) and FASB 109, "Accounting for Income Taxes" ($30 million income).
 (C) Earnings before interest, taxes, depreciation, depletion, amortization and non-cash postretirement charges.
 -0- 4/23/93
 /CONTACT: USG, Corporate Communications Department, 312-606-4124; Investor Communications Department, 312-606-5594.
 (USG)


CO: USG Corp. ST: Illinois IN: CST SU: ERN

LR -- NY038 -- 0022 04/23/93 11:53 EDT
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Date:Apr 23, 1993
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