Monday, January 31, 2011

USG Corp (USG): "We View 2011 as Another Tough Year" - So Why All the Excitement?

Comments from the USG Corp (USG) earnings call:

Looking ahead, I remain optimistic that the demographics will again stimulate demand for our products and services. People will get married and start families, the U.S. housing stock continues to age and world economies will grow, all of which will stimulate meaningful demand for our products and services.
They obviously don't have too much insight into the demographic problems facing the U.S. and the rest of the western world. Someone needs to tell USG that the baby boomers forgot to have children and are going to be selling houses and stocks into a declining market for the next couple decades.
But we feel that we are in the final stage of one of the worst market downturns our industry has ever seen.

The optimism during the first quarter about our recovery faded and the year basically ended up sideways.

We view 2011 as another tough year.
Hmmm... doesn't sound promising. [See the Seeking Alpha transcript for the rest.]

2 comments:

getyourselfconnected said...

"Someone needs to tell USG that the baby boomers forgot to have children and are going to be selling houses and stocks into a declining market for the next couple decades."

Classic! So true.

CP said...

I have a more detailed post about demographics in the pipeline.

Everyone buries their head in the sand about the demographic problem because the implications are so dire (and deflationary).