Sheetrock Maker Flies While Stock Flounders

Despite recent record sales and profits, Sheetrock producer USG Corp. was ranked the Worst l0-Year Stock Performer by the Wall Street Jou rnal's Shareholder Scoreboard.

From December 1989 to December 1999, USG posted an average annual compound total return of negative 14.4%, placing it last among the 649 Scoreboard firms with l0-year 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 four-fold, and is increasing sales l57o annually. Last year's wallboard shortage helped USG record net income of $421 million, up 27Vo from 1998.

Yet investors 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 pro- duce 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 building products companies 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 Armstrong World Industries (#24 over three years).

The only building products-related firm on any of the Best Performing Lists was Home Depot (#25 over l0 years).

ldaho Sues Forest Service

The State of Idaho is suing the U.S. Forest Service, claiming the federal government is not giving state officials any say in a plan that proposes to set aside 50 million acres of U.S. land to remain roadless.

The state filed suit after its