Owens Corning Q2 sales fall 2.8%

First-Half Execution Positions Company for Strong Second-Half EBIT Growth

- Roofing delivered 21 percent EBIT margins in first half; positioned for full-year margin expansion
- Insulation achieved profitable second quarter for first time since 2008; on track for full-year profitability
-Composites delivered significant sequential EBIT growth; positioned to deliver second-half improvement
- Company reaffirms 2013 outlook of at least $100 million growth in adjusted EBIT

Second-quarter 2013 adjusted earnings were $69 million, or $0.57 per diluted share, compared with $67 million, or $0.55 per diluted share, during the same period one year ago.  The company reported net earnings of $49 million, or $0.41 per diluted share, in the second quarter of 2013, compared to $39 million, or $0.32 per diluted share, in 2012. 

"We are pleased with our progress in the second quarter and the first half of 2013, with strong margin performance in our Roofing business, price increases and operating leverage in Insulation, and improved performance in Composites," said Chairman and Chief Executive Officer Mike Thaman.

"We expect improvement in all three businesses for the full year 2013.  In Roofing, we anticipate the full-year market demand to be flat.  Based on our first-half shipments, we expect stronger volumes in the second half versus 2012.  This demand distribution is more consistent with historical patterns," Thaman said. "Stronger second-half Insulation volumes driven by growth in residential new construction, higher capacity utilization and improved pricing will support full-year 2013 Insulation profitability. The Composites business is well positioned to deliver second-half improvements on positive operating leverage."

Consolidated Second-Quarter Results

- Owens Corning's safety performance in the second quarter of 2013 improved by 16 percent compared with the same period one year ago.

- Adjusted EBIT in the second quarter of 2013 was $124 million, up from $117 million in 2012.  In the second quarter of 2013, the company had certain items that were not the result of current operations.  Before adjusting for these items, second-quarter 2013 EBIT was $118 million.  This compares favorably with a second-quarter 2012 EBIT of $85 million. 

-To support growth opportunities in the U.S. building materials market, the company acquired Thermafiber, a mineral wool insulation manufacturer, expanding its Insulation product portfolio, and announced plans to build a Composites non-wovens facility in the U.S.

The company announced agreements with China-based manufacturers Taishan and Jinniu, which will enable its Composites businessto leverage commercial strengths, lower capital investment and eliminate high-delivered-cost assets.

Owens Corning