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Owens Corning reports impressive turnaround in Composites for 2010

News International-French

17 Feb 2011

Owens Corning reported on the 16th of February 2011 consolidated net sales for 2010 of $5.0 billion, a 4-percent increase from net sales of $4.8 billion in 2009.

Full-year adjusted earnings were $199 million, or $1.57 per diluted share, compared with $145 million, or $1.14 per diluted share, in 2009. Net earnings were $933 million, or $7.37 per diluted share, compared with net earnings of $64 million, or $0.50 per diluted share, in 2009. Fourth-quarter 2010 adjusted earnings were $29 million, or $0.23 per diluted share, compared with $1 million, or $0.01 per diluted share, one year ago. Net loss in the fourth quarter of 2010 totaled $110 million, or $0.89 per diluted share, compared with a net loss of $21 million, or $0.17 per diluted share, in 2009. Full-year and fourth-quarter results were both impacted by impairments associated with the sale of the North American Masonry Products business, as well as certain tax-related items. See Tables 1, 2 and 3 for a discussion and reconciliation of these items.

“Our 2010 financial performance was strong,” said Chairman and Chief Executive Officer Mike Thaman. “Owens Corning’s portfolio of market-leading businesses delivered robust profitability despite markets that continued to perform well below their potential.

“Improving global demand fueled impressive operating leverage in Composites,” Thaman added. “In Building Materials, our Roofing business delivered 22-percent operating margins despite enduring a weak market. Looking forward to 2011, we expect improving demand in all of our major end markets, and we are confident in our ability to deliver another year of adjusted earnings per share growth of more than 30 percent.”


Focus on “Composites” Business Segment


Net sales
Net sales in the Composites segment increased 17 percent to $1.9 billion in 2010, compared with $1.6 billion in 2009. Substantially all of the increase in net sales was due to higher sales volumes as global demand improved in 2010. The upward trend in selling prices that began in the fourth quarter of 2008 continued through the end of 2010. As a result, selling prices for all markets within the Reinforcements business at the end of 2010 are approaching levels seen prior to the 2008 global economic downturn.


EBIT
EBIT in the Composites segment increased to $175 million in 2010, compared to a loss of $33 million in 2009. More than three-quarters of the improvement in 2010 was driven by higher sales volumes, including the impact of improved capacity utilization, which returned to levels last seen in 2008. Higher selling prices accounted for the remainder of the increase in EBIT. These improvements resulted in the Composites segment achieving double-digit EBIT margins for the fourth quarter of 2010. 

 

About Owens Corning
Owens Corning is a leading global producer of residential and commercial building materials, glass-fiber reinforcements and engineered materials for composite systems. A Fortune® 500 Company for 56 consecutive years, Owens Corning is committed to driving sustainability by delivering solutions, transforming markets and enhancing lives. Founded in 1938, Owens Corning is a market-leading innovator of glass-fiber technology with sales of $5.0 billion in 2010 and about 15,000 employees in 28 countries on five continents.

 

Source : Owens Corning