EXHIBIT 99
FOR IMMEDIATE RELEASE Contact:
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Friday, April 25, 2003 John F. Rebele
Senior Vice President
and Chief Financial Officer
Building Materials Corporation
of America
(973) 628-4038
BUILDING MATERIALS CORPORATION OF AMERICA ANNOUNCES
FIRST QUARTER OPERATING RESULTS
Wayne, NJ -- Building Materials Corporation of America ("BMCA" or "the
Company"), announced today first quarter of 2003 net income of $3.6 million
compared to net income of $2.9 million in the first quarter of 2002,
representing an increase of 24.1%. The increase in first quarter of 2003 net
income was primarily attributable to lower other expenses.
Operating income in the first quarter of 2003 was $20.7 million
compared to $20.6 million in the first quarter of 2002. Operating results were
positively effected by higher net sales of both residential and commercial
roofing products together with lower manufacturing costs, offset by higher raw
material costs, principally asphalt due to higher crude oil prices and limited
asphalt availability, higher energy costs and increased selling, general and
administrative expenses.
Net sales for the first quarter of 2003 reached $338.9 million, a 6.1%
increase over first quarter of 2002 net sales of $319.3 million, with the
increase primarily due to higher unit volumes and higher average selling prices
of both residential and commercial roofing products.
Interest expense for the first quarter of 2003 decreased to $13.5
million from $13.7 million for the same period in 2002, primarily due to lower
average borrowings and a lower average interest rate. Other expense net, was
$1.6 million for the first quarter of 2003 compared with $2.3 million for the
same period in 2002.
OTHER MATTERS
During the first quarter of 2003, the petroleum industry strike in
Venezuela continued to impact the asphalt supply for the U.S. roofing industry.
The tightness in supply of asphalt has resulted in significant asphalt cost
increases. The Company believes that the continued geo-political tensions and
seasonal increases in demand for paving asphalt may further impact asphalt
supplies and pricing in the short-term. With the strength of our manufacturing
operations which allows BMCA to use many types of asphalt, the Company has been
able to secure alternative sources of supply of asphalt and, as a result,
believes the asphalt market conditions will not have a significant impact on
future sales, although no assurances can be provided in that regard.
To offset these and other petroleum based cost increases, the Company
announced and implemented multiple price increases during the first and second
quarters of 2003. The Company will attempt to pass on future additional
unexpected cost increases from our suppliers as needed; however, no assurances
can be provided that these price increases will be accepted in the marketplace.
* * * *
Building Materials Corporation of America, which operates under the
name of GAF Materials Corporation, is an indirect subsidiary of G-I Holdings
Inc., and is a leading national manufacturer of residential and commercial
roofing products and specialty building products.
This press release contains "forward looking statements" within the
meaning of the federal securities laws with respect to the Company's financial
results and future operations and, as such, concerns matters that are not
historical facts. These statements are subject to risks and uncertainties that
could cause actual results to differ materially from those expressed in such
statements. Important factors that could cause such differences are discussed in
the Company's filings with the U.S. Securities and Exchange Commission and are
incorporated herein by reference.
BUILDING MATERIALS CORPORATION OF AMERICA
SALES AND EARNINGS DATA
(Unaudited)
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First Quarter Ended
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March 30, 2003 March 31, 2002
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(Millions)
Net Sales $ 338.9 $ 319.3
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Costs and expenses: (1)
Cost of products sold 245.9 229.9
Selling, general and administrative 72.3 68.8
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Total costs and expenses 318.2 298.7
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Operating income 20.7 20.6
Interest expense (13.5) (13.7)
Other expense, net (1.6) (2.3)
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Income before income taxes 5.6 4.6
Income tax provision (2.0) (1.7)
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Net income $ 3.6 $ 2.9
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(1) For the three month periods ended March 30, 2003 and March 31, 2002,
depreciation and amortization amounted to $10.0 and $9.9 million,
respectively.