The Quality Leader in Treated Wood Products

BY: THOMAS E. LIPPINCOTT

USG Flies While Stock Flounders

Despite recent record sales and profits, Sheetrock producer USG Corp. was ranked the Worst lO-Year Stock Performer by the Wall Street Journal's Shareholder Scoreboard.

From December 1989 to December 1999, USG posted an average annual compound total return of negative l4.4%o, placing it last among the 649 Scoreboard firms with lGyear performance histories. Shareholders who invested $1,000 in USG at the end of 1989 now would hold about $212 in stock.

Since emerging from bankruptcy six years ago, though, USG has paid down $l billion in debt, boosted profits fourfold, and is increasing sales l57o annually. Last year's wallboard shortage helped USG record net income of $421 million, up277o from 1998.

Yet investon expect a slowdown in new home construction will hinder future earnings, especially with the drywall shortage ending and USG continuing to add new $100 million plants. Two facilities opened last year and three more will be completed over the next 12 months, each to produce twice as much drywall as an old plant, but at half the cost.

USG's ranking on the list also reflects that its stock continued to trade through the bankruptcy, brought on in part by having to pay $l million in interest a day on a crushing $2.5 billion debt.

Other firms on the Worst Performing Lists included Owens Corning (#12 over the last l0 years, #14 over five years, #18 over three years), Louisiana-Pacific (#10 over five years), and Armstron g $2a over three years).

The only industry firm on the Best Performing List was Home Depot (#25 over l0 years).

We don't make a lot of noise about NASCOR- engineered floor joists. Let's just say they're strongel straighter; lighter and dimensronally truer than any conventional 2x'10 joist you've ever seen. They're also alot quieter. Which makes NASCOR* the strongest, quietest floor joists you've ever heard.

Imagine your customer finding out, after he moved into his new home, that for a minimal cost, he could've had roof decking and wall sheathing that not only would've kepr his home more comfortable, but also would've cut his cooling bills as much as 25o/o? You'd be hot under the collar, too. And do you know who your customer would be hot under the collar at? You. The builder. To ensure that you don't receive any unpleasant phone calls, or damage to your reputation, just tell your prospective homebuyers about the energy saving product called SOIAR BOARD'Radiant Barrier Sheathing, made by International Paper. It's laminated with polished aluminum that refects up to 97o/o of. radiant heat from the sun, which keeps attics 20-30o cooler, which reduces energv costs to cool a home bv as much as 25olo! And in Winter, SOfAR BOARD helps hold heat in a house as well. Your customers will be grateful to you for as long as they own their home. However, if you've akeady sold homes without SOIAR BOARD, pray those homeowners don't find out it costs only a few dollars more per sheet than regular sheathing. It won't take them long to figure out that SOIAR BOARD would've paid for itself very quickly and, after that, would've put the energy salrngs into their pockets month after month, for years to come. That makes people real upset. For complete information about SOIAR BOARD and the name of the wholesaler nearest you, just call us at 1-800-527-5907. You'll see for yourself, the only thing SOIAR BOARD heats up is your sales.

Lowe's Bomber Sentenced

An electronics repairman who earlier had pleaded guilty to five charges relating to bombings at Lowe's stores in North Carolina has been sentenced to 40 years in prison (see Jan., p.25).

George Matos Rocha,5l, confessed in December to planting pipe bombs that exploded Sept. 22, 1999 at stores in Salisbury and Asheboro and an undetonated device Sept. 28 in Concord.

Rocha also admitted to mailing threats to the firm's North Wilkesboro, N.C., headquarters in which he demanded $250,000 to stop the bombing. His motive reportedly was revenge for his earlier arrest for switching price tags at Lowe's of Greensboro.

Sears & AOL Form Alliance

Sears and America Online have agreed to market each other's products and services.

As the retailer's prefened service provider, AOL will issue a new cobranded software edition with special offers and links to sears.com, which sells tools, appliances, lawn and garden equipment and other products.

In turn, Sears will promote AOL's products and services in its stores and in its media advertising, the latter, pro- viding special offers to the service provider's subscribers.

The firms will create online home improvement content that will enable consumers to communicate with Sears' customer service in real time.

Annual Wholesalers' Meeting

A full roster of educational programs, activities and the like will be held during North American Wholesale Lumber Association's l08th annual meeting April29-May 2 at the La Costa Resort and Spa, Carlsbad. Ca.

An 8:30 a.m. board meeting starts things off Saturday, April 29, the day's sole event.

Sunday's events include a business breakfast, brunch, silent auction, golf tournament. and a Manufacturers Council advisory committee meeting.

The general session and keynote address begin at l:00 p.m., including presentation of the Mulrooney Award. Jim Livermore, NAWLA chairman, will moderate an educational program panel discussion afterwards, followed by a welcoming party.

Monday begins with a 5K run/walk, followed by a spouse tour of the Birch Aquarium and lunch at nearby Azul Restaurant. Concunently, wholesalers and suppliers can rub elbows during an informal contact session, and then participate in a mixed doubles tennis tournament prior to happy hour.

The concluding day has two meetings, a men's golf tournament, a beauty and makeup demonstration, plus the Chairman's reception and banquet.

Among the educational programs are J. Michael Marks' "Catching the ECommerce Wave," on Web-based ecommerce practices; Bruce Anderson's "Wood Is Good-The Pro-Wood Initiative," and Robert Glowinski's "New Market Opportunities in Commercial Construction," a symposium on international building codes.

Slow Boat To China, Beware

New trade policies for exporting to China state that all U.S. goods must have proper packing material certification, or risk being destroyed.

However, recognizing the need for flexibility, China said non-compliant shipments will be quarantined at the exporter's expense for up to 60 days while awaiting proper certification.

Local agencies have been given jurisdiction to assess fines for noncompliant companies that fail to present the proper certification within a reasonable period of time.