USG Q4 earning call

·         2009 revenue fall 30%

·         100m cash from lawsuit won,300m senior notes. Total 700m

·         Cash flow: 30m (positive)

·         2010 housing start forecast: 600k to 900k

·         2009: reduce OH spending for 75m

·         Q4 loss is 11m, with the benefit of the 97m income from settlement of lawsuit

·         31m charge on goodwill and asset depreciation

·         2009 net loss is 598m

·         deferred tax valuation allowance: 548m

·         170m interest expense for 2010

·         Industry is running 50% capacity

USG could break out again, but if that happens, better to sell 50% position. long term, it takes years to really recover.