American Owens Corning, the world leader in technical glass and composite materials, has reported record second quarter sales and earnings. Net income for the quarter increased to US$ 69 million, up 1…
American Owens Corning, the world leader in technical glass and composite materials, has reported record second quarter sales and earnings. Net income for the quarter increased to US$ 69 million, up 10%. Net sales were up 9% for the quarter to US$ 856 million. For the six months ended 30 June 1996, net income, excluding special charges, increased 14% to US$ 108 million, or US$ 1.98 per fully diluted share, compared to net income of US$ 95 million, or US$ 1.88 fully diluted share, in the first half of 1995. Including the charge, the net loss was US$ 434 million for the first six months of 1996. Net sales increased to US$ 1.805 billion for the first six months, compared to US$ 1.721 billion for the same period in 1995. According to analysts, the world glass fibre industry for composites produced 2.3 million tonnes in 1995, valued at US$ 4.3 billion. The Asia-Pacific region accounted for 24% of this. However, the share is expected to increase to 28% by 2000, based on 60% growth to 810,000 tonnes per year. With more than 40% of the world“s population living in this region, there is huge growth potential. Owens Corning has been a major player in the area for some time, and is looking to capitalise on this enormous growth potential. The first indication of this is a new plant planned near Bombay, India, due to be opened in 1998. India is a huge potential market, with large expected growth; the same can be said of China, although the Chinese industry is less structured. The largest market in the region is Japan, which is at present stagnant. The region remains poorly educated with regard to the use of composites, and Owens Corning believes this problem must be addressed before the region“s potential can be exploited to the full. Furthermore, Owens Corning has begun production of ZenTron, a very strong glass fibre with tensile strength 15-20% greater than standard glass fibres. Products made from it are claimed to be 50% tougher than those made from other fibres. It is compatible with epoxy and vinyl ester resins.