Owens Corning said 7 May 2008 that adjusted 1Q 2008 income from continuing operations was USD 10 million, or USD 0.07 a share, higher than the mean estimate of analysts polled by Thomson Reuters of US…
Owens Corning said 7 May 2008 that adjusted 1Q 2008 income from continuing operations was USD 10 million, or USD 0.07 a share, higher than the mean estimate of analysts polled by Thomson Reuters of USD 0.02 a share. Sales for the Toledo, Ohio-based building materials company rose 20% to USD 1.35 billion, above the USD 1.2 billion analyst estimate. The company said sales rose on its acquisition of Saint-Gobain“s reinforcements and composite fabrics units in November 2007. In the year-ago period, the company posted adjusted income from continuing operations of USD 18 million, or USD 0.13 a share, on sales of USD 1.12 billion. The company“s Composite Solutions business recorded net sales for the 1Q 2008 of USD 666 million, an 82% increase from USD 366 million during the same period in 2007. The increase was driven by incremental sales associated with the acquisition of the Saint-Gobain reinforcements and composite fabrics businesses. Composite Solutions“ EBIT from continuing operations for the 1Q 2008 was USD 64 million, compared with USD 25 million during the same period in 2007. The increase was primarily due to incremental earnings associated with the company“s composites acquisition and the impact of improved productivity. Net sales for Insulating Systems for the 1Q 2008 were USD 373 million, down 11% from USD 419 million during the same period in 2007. Sales for residential insulation products were significantly affected by the reduction in new residential construction and repair and remodeling in the United States. EBIT for Insulating Systems from continuing operations for the 1Q 2008 was USD 16 million, compared with USD 53 million during the same period in 2007. The decline was primarily due to lower selling prices driven by the weakness in the US housing market. Owens Corning said demand for its building materials unit would be affected if current weakness in the US housing market continues through 2008. The company forecast pretax earnings of USD 240 million.