Owens Corning reported 1 August 2007 consolidated net sales of USD 1.534 billion during the 2Q, compared with USD 1.722 billion in the 2Q 2006, down 11%.
Second-quarter net earnings were USD 29 milli…
Owens Corning reported 1 August 2007 consolidated net sales of USD 1.534 billion during the 2Q, compared with USD 1.722 billion in the 2Q 2006, down 11%. Second-quarter net earnings were USD 29 million, or USD 0.22 per diluted share. Excluding comparability items, related to the company“s prior Chapter 11 proceedings and restructuring and other charges, adjusted net earnings were USD 49 million, or USD 0.37 per diluted share. Such items amounted to approximately USD 30 million (USD 20 million after tax) during the 2Q 2007. “The ongoing decline of the residential construction market in the United States continued to weaken demand for building materials during the 2Q”, said Dave Brown, president and chief executive officer. “We believe that year-over-year performance improvements in our Roofing & Asphalt and Composite Solutions segments will partially offset cyclical weakness in insulation demand. Despite the challenging market, our business mix enables us to reaffirm prior guidance for 2007”. “In addition, we“ve announced strategic steps to significantly improve our business portfolio and accelerate our global growth”, said Mr. Brown. “The acquisition of Saint-Gobain“s Reinforcement and Composites business and the sale of our Siding Solutions business will further our ability to generate profitable growth and drive shareholder value”. Earnings before interest and taxes (EBIT) in the 2Q 2007 were USD 78 million, compared with USD 168 million during the same period of 2006. Excluding comparability items, adjusted EBIT for the 2Q 2007 was USD 108 million, compared with USD 158 million during the same period in 2006. The overall decline was primarily due to lower sales combined with higher raw material and labor costs. For the first six months, EBIT was USD 111 million, compared with USD 283 million for the same period of 2006. Excluding comparability items, adjusted EBIT for the 1H 2007 was USD 169 million, compared with USD 272 million during the same period in 2006. Looking ahead to the 2H 2007, the weakness in new home starts in the United States which continued through the first half of 2007 is expected to carry through well into 2008, based on current estimates by the National Association of Home Builders (NAHB); this weakness will continue to affect the company“s building materials businesses. As the year continues, the financial performance of the Roofing and Asphalt, Composite Solutions and Other Building Materials & Services segments is expected to continue to improve. The company continues to estimate that 2007 adjusted EBIT should exceed USD 415 million, not including the impact of the proposed acquisition of Saint-Gobain“s Reinforcement and Composites business, the divestiture of Owens Corning“s Siding Solutions business or other strategic organizational changes.
