Owens Corning: 4Q and annual results for 2002

Owens Corning reported 10 February 2003 financial results for the 4Q ended 31 December 2002, as well as results for the full year 2002.
For the 4Q of 2002, the company had net sales of USD 1.174 bill…

Owens Corning reported 10 February 2003 financial results for the 4Q ended 31 December 2002, as well as results for the full year 2002. For the 4Q of 2002, the company had net sales of USD 1.174 billion, against net sales of USD 1.165 billion for the same period in 2001. Owens Corning reported a loss from operations of USD 44 million for the quarter, including charges of USD 113 million for restructuring and other charges and USD 11 million of Chapter 11-related charges. For the 4Q of 2001, the company reported USD 13 million in income from operations, including charges of USD 46 million for restructuring and other charges, USD 27 million of Chapter 11-related charges and USD 2 million of income from asbestos-related insurance recoveries. For the quarter, the company had a net loss of USD 39 million, as compared to a net loss of USD 7 million for the fourth quarter of 2001. Owens Corning ended 2002 with a cash balance of USD 875 million compared to USD 764 million in 2001. For 2002, the company had net sales of USD 4.872 billion, compared to USD 4.762 billion for 2001. Owens Corning reported a loss from operations of USD 2.313 billion, including charges of USD 2.356 billion for provision for asbestos-related liabilities, USD 166 million for restructuring and other charges, and USD 96 million of Chapter 11-related charges, partially offset by USD 5 million of income from asbestos-related insurance recoveries. For the year, the company had a net loss of USD 2.809 billion. The net loss for 2002 also reflects a non-cash charge of USD 491 million (USD 441 million net of tax) as the result of the adoption of Statement of Financial Accounting Standards No. 142, relating to the accounting for goodwill and other intangibles. For 2001, the company reported USD 116 million of income from operations and net income of USD 39 million. Income from operations for 2001 reflected charges of USD 140 million for restructuring and other charges, USD 87 million of Chapter 11-related charges and USD 7 million of income from asbestos-related insurance recoveries. “Overall, we are pleased with the financial results of our on-going business operations for 2002, which exceeded our operating plan for the year,” said David Brown, Owens Corning“s chief executive officer. “Unfortunately, those results tend to be obscured by the charges that we recorded during the year. When we resolve our asbestos liabilities and emerge from Chapter 11, our reported results should once again more clearly reflect the operational results of our business,” continued Brown. The total asbestos liability of Owens Corning“s total asbestos liability and that ofits Fibreboard subsidiary remains subject to review and negotiations in the company“s Chapter 11 proceedings. The company will continue to review the asbestos reserves for Owens Corning and Fibreboard on an ongoing basis and make such adjustments as it deems necessary.