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Owens Corning Reports Second-Quarter 2017 Results

TOLEDO, Ohio--(BUSINESS WIRE)--Owens Corning (NYSE: OC) today reported consolidated net sales of $1.60 billion in second-quarter 2017, compared with net sales of $1.55 billion in second-quarter 2016, an increase of 3%.

“In addition, we were pleased to complete the acquisition of Pittsburgh Corning and its well-recognized FOAMGLAS® product line, which expands the geographic footprint and product portfolio of our Insulation business.”

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Second-quarter 2017 net earnings attributable to Owens Corning were $96 million, or $0.85 per diluted share, compared with $138 million, or $1.19 per diluted share, during the comparable quarter in 2016. For first-half 2017, net earnings were $197 million. Second-quarter 2017 adjusted earnings were $136 million, or $1.20 per diluted share, compared with $151 million, or $1.30 per diluted share, during the same period one year ago (See Use of Non-GAAP Measures, See Table 3).

“Owens Corning built upon the performance achieved in the first quarter and delivered strong second-quarter results. Through the first half, the company produced adjusted EBIT of $401 million and continues to generate strong operating cash flow,” said Chairman and Chief Executive Officer Mike Thaman. “In addition, we were pleased to complete the acquisition of Pittsburgh Corning and its well-recognized FOAMGLAS® product line, which expands the geographic footprint and product portfolio of our Insulation business.”

Consolidated Second-Quarter 2017 Results

  • Owens Corning sustained a high level of safety performance in the second quarter, with a recordable incident rate of 0.48, compared with 0.54 in second-quarter 2016, representing an 11% improvement.
  • Reported earnings before interest and taxes (EBIT) for second-quarter 2017 were $190 million, compared with $240 million during the same period in 2016. Adjusted EBIT in second-quarter 2017 was $230 million, compared with $253 million in 2016 (See Table 2).
  • During the quarter, the company incurred $40 million of net expenses which were excluded from adjusted EBIT. Charges associated with pension risk mitigation, the acquisition of Pittsburgh Corning, and the decisions not to rebuild sub-scale furnaces in the Composites business were partially offset by income from a legal settlement.
  • During second-quarter 2017, Owens Corning repurchased 1.0 million shares of its common stock for $61 million. As of the end of the quarter, 7.8 million shares were available for repurchase under the current authorization.

Senior Notes Offering

  • On June 26, 2017, the company issued a new 30-year bond of $600 million at 4.3% and launched a tender offer for all of the outstanding bonds maturing in 2019, and up to $140 million of bonds maturing in 2036. The new debt structure improves the company’s debt maturity profile and liquidity. In association with the tender offer, the company expects to incur a loss on debt extinguishment of approximately $70 million in third-quarter 2017.

2017 Outlook

  • The company continues to expect an environment consistent with consensus expectations for U.S. housing starts and moderate global industrial production growth.
  • In Roofing, second-quarter volumes remained strong and first-half shingle shipments were up mid-single digits. The company now expects that continued growth in new construction and reroof demand will offset potential declines from storm activity, resulting in a relatively flat market for 2017.
  • In Composites, the business has experienced strong volume performance during the first half of the year. The company now expects EBIT growth of about $30 million, with the improved outlook primarily driven by stronger volume expectations.
  • In Insulation, the company now expects to deliver revenue growth of more than $250 million and EBIT of about $185 million. This improved outlook is driven by successful pricing actions in the U.S. residential Insulation business and the benefit of the Pittsburgh Corning acquisition, partially offset by the greater than expected start-up impact of the recently commissioned mineral wool facility.
  • The company estimates an effective tax rate of 32% to 34%, and a cash tax rate of 10% to 12% on adjusted pre-tax earnings, due to the company’s $1.8 billion U.S. tax net operating loss carryforward.
  • The company expects general corporate expenses to be between $135 million and $140 million in 2017. Capital additions in 2017 are expected to total approximately $385 million. Interest expense is expected to be about $110 million.
  • For full-year 2017, the company expects adjusted EBIT of at least $825 million, as growth accelerates in the second half of the year.

Next Earnings Announcement

Third-quarter 2017 results will be announced on Wednesday, October 25, 2017.

Second-Quarter 2017 Conference Call and Presentation

Wednesday, July 26, 2017
11 a.m. Eastern Daylight Time

All Callers

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: 480-9731 (Please dial in 10-15 minutes before conference call start time)
Live webcast:

Telephone and Webcast Replay

Telephone replay will be available one hour after the end of the call through August 2, 2017. 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: 101-095-83
Replay available at
Webcast replay available until July 26, 2018

About Owens Corning

Owens Corning (NYSE: OC) develops, manufactures, and markets insulation, roofing, and fiberglass composites. Global in scope and human in scale, the company’s market-leading businesses use their deep expertise in materials, manufacturing and building science to develop products and systems that save energy and improve comfort in commercial and residential buildings. Through its glass reinforcements business, the company makes thousands of products lighter, stronger and more durable. Ultimately, Owens Corning people and products make the world a better place. Based in Toledo, Ohio, Owens Corning posted 2016 sales of $5.7 billion and employs 17,000 people in 33 countries. It has been a Fortune 500® company for 63 consecutive years. For more information, please visit

Use of Non-GAAP Measures

Owens Corning uses non-GAAP measures in its earnings press release that are intended to supplement investors’ understanding of the company’s financial information. These non-GAAP measures include EBIT, adjusted EBIT, adjusted earnings, adjusted diluted earnings per share attributable to Owens Corning common stockholders (“adjusted EPS”), adjusted pre-tax earnings, and...