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Saturday, October 29, 2011

Owens Corning Reports Record Quarterly Results

Best Earnings Performance in the Company's History

  • Improved Third-Quarter EBIT and Revenue in All Three Businesses Versus 2010
  • Delivered 21-Percent EBIT Margins Year-to-Date in Roofing
  • Improved Performance in Insulation on Strong Execution
  • Grew Composites EBIT by 14 Percent Versus 2010

Owens Corning (NYSE: OC) today reported that consolidated net sales increased 22 percent to $1.5 billion in the third quarter of 2011, compared with $1.2 billion in the same period last year.
Third-quarter 2011 adjusted earnings, based on the company's expected full-year effective tax rate of 25 percent, were $110 million, or $0.90 per diluted share, compared with $44 million, or $0.35 per diluted share, during the same period last year.  Third-quarter 2011 net earnings were $124 million, or $1.01 per diluted share, compared with net earnings of $58 million, or $0.46 per diluted share, in the third quarter of 2010.  (See Tables 1, 2 and 3 for a discussion and reconciliation of these items.)

"Owens Corning delivered record earnings performance in the third quarter," said Chairman and Chief Executive Officer Mike Thaman.  "We continue to benefit from strong execution in an uncertain economy and a resilient portfolio of market-leading businesses."

Consolidated Third-Quarter 2011 Results
  • Owens Corning's primary safety metric improved by approximately 25 percent year-to-date over the company's full-year 2010 performance.  This positions the company for a tenth consecutive year of safety improvement.
  • Third-quarter earnings before interest and taxes (EBIT) was $177 million in 2011 compared with $69 million in the third quarter of 2010.  In 2010, the company had certain items that were not the result of current operations.  After adjusting for these items, Owens Corning's third-quarter 2010 EBIT was $90 million.  (See Table 2 for a reconciliation of these items.)
  • Gross margin as a percentage of net sales was 22 percent in the third quarter of 2011 compared with 20 percent in 2010.

Other Financial Items
  • The company maintains a strong balance sheet with ample liquidity.  The company refinanced its senior revolving credit facility in the quarter to extend its maturity to 2016 and reduce borrowing costs.  
  • The company has repurchased 4.0 million shares of its common stock year-to-date.  As of September 30, 2011, an additional 3.7 million shares remained available for repurchase.
  • Owens Corning's federal tax net operating loss carry-forward was $2.3 billion as of September 30, 2011.
  • At the end of the third quarter of 2011, excluding the impact of interest rate swaps, Owens Corning had total debt, less cash-on-hand of $1.96 billion, compared with $1.57 billion at the end of 2010.

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