Owens Corning Updates Earnings Expectations
Owens Corning recently announced it has lowered its 2012 earnings outlook, reportedly reflecting a weaker environment for its Roofing and Composites businesses. Full-year adjusted earnings before interest and taxes (EBIT) for the company are now expected to be in the range of $280 million to $310 million, with the primary uncertainty through the remainder of the year attributed to roofing volumes.
Preliminary third quarter adjusted EBIT is $81 million. In the third quarter of 2012, the company had $22 million of certain items that were not the result of current operations. Before adjusting for these items, preliminary third quarter EBIT is $59 million.
Composites demand in the second half of 2012 will reportedly be impacted by lower global industrial production, particularly in Europe, as well as by the weaker U.S. roofing market. The company’s estimate for global glass fiber market demand growth in 2012 has been reduced to approximately 3%, compared to the long-term historical average growth rate of 5%. To respond to this weaker environment, the company has initiated further production curtailments to bring inventories in line with previously discussed year-end targets.
For more information, visit www.owenscorning.com.