The following excerpt is from the company's
Composites delivered 9
consecutive quarter of EBIT improvement
Roofing produced $103 million of EBIT and 21 percent EBIT margins
Insulation grew EBIT for the 17
Company now expects full-year adjusted EBIT at or above the high end of the $460 million to $500 million guidance range
TOLEDO, Ohio - October 21, 2015 - Owens Corning (NYSE: OC) today reported consolidated net sales of $1.46 billion in the third quarter of 2015, up from $1.38 billion in 2014.
Third-quarter 2015 adjusted earnings were $113 million, or $0.96 per diluted share, up from $73 million, or $0.62 per dil uted share, in the same period last year. Net earnings in the third quarter of 2015 were $112 million, or $0.95 per diluted share, compared to third-quarter 2014 net earnings of $52 million, or $0.44 per diluted share. (See Table 3 for a discussion and reconciliation of these items.)
“Owens Corning had a very strong quarter, as all three businesses made substantial contributions to earnings,” said Mike Thaman, chairman and chief executive officer. “Our businesses performed at double-digit margin levels as a result of positive macro trends and strong commercial and operational execution.”
Consolidated Third-Quarter 2015 Results
Owens Corning continued to perform at a high level of safety with a Recordable Incident Rate (RIR) of 0.49 for the nine months ending September 30, 2015. This represents safety improvement of eight percent versus the same period in 2014.
Adjusted earnings before interest and taxes (adjusted EBIT) in the third quarter of 2015 were $198 million, up from $132 million in 2014. Reported EBIT for the third quarter was $196 million, compared with $107 million during the same period in 2014. (See Table 2.)
During the third quarter, Owens Corning repurchased 1.1 million shares of the company’s common stock for $47 million. As of September 30, 2015, 5.6 million shares remained available for repurchase under the company’s current authorization.
The company’s Board of Directors declared a quarterly cash dividend of $0.17 per common share. The dividend will be payable on Nov. 3, 2015, to shareholders of record as of Oct. 19, 2015
For the sixth year in a row, Owens Corning earned placement in the Dow Jones Sustainability World Index (DJSI World) in recognition of its sustainability initiatives.
The company continues to expect to benefit in 2015 from sustained improvement in the U.S. housing market and moderate global growth.
In Composites, the company now expects a full-year EBIT improvement of about $80 million based on current volume and pricing strength, including the impact of $25 million in currency headwinds.
In Roofing, the company continues to expect that the full-year U.S. shingle market will be in line with last year. Full-year benefit from asphalt deflation is now expected to be around $60 million, positioning the business to meet or exceed last year’s EBIT performance.
Insulation should continue to benefit from growth in U.S. residential new construction, improved pricing and operating leverage. The company expects revenue growth of about 10 percent in the second half with full-year operating leverage of around 40 percent.
The company now estimates an effective tax rate of 32 percent to 34 percent, and a cash tax rate of 10 percent to 12 percent on adjusted pre-tax earnings, due to the company’s estimated $2 billion U.S. tax net operating loss carryforward.
The company now expects full-year corporate expenses to be around $110 million. Interest expense for the full-year is expected to be about $110 million and capital expenditures approximately $380 million.
For the full year 2015, the company now expects adjusted EBIT to be at or above the high end of its previous guidance range of $460 million to $500 million.
The company will hold an Investor Day on November 18
in Atlanta, GA. Information on the audio webcast of the event will be announced in early November.
Next Earnings Announcement
Fourth-quarter 2015 results will be announced on Wednesday, February 10, 2016.
Conference Call and Presentation
Wednesday, October 21, 2015
11 a.m. Eastern Time
Live dial-in telephone number: U.S. 1.888.317.6003; Canada 1.866.284.3684; and other international +1.412.317.6061.
Entry number: 596-1435 (Please dial in 10-15 minutes before conference call start time)
Telephone and Webcast Replay
Telephone replay will be available one hour after the end of the call through Oct. 28, 2015. In the U.S., call 1.877.344.7529. In Canada, call 1.855.669.9658. In other international locations, call +1.412.317.0088.
Conference replay number: 100-734-18
Replay available at
Webcast replay available until Oct. 21, 2016
About Owens Corning
Owens Corning (NYSE: OC) develops, manufactures and markets insulation...