Owens Corning recently reported a consolidated net sales increase of 5% to $1.5 billion in the second quarter 2011, compared with $1.4 billion in the second quarter of 2010. Second quarter 2011 adjusted earnings, based on the company’s expected full-year effective tax rate of 28%, were $77 million, compared with $73 million during the same period last year. Second quarter 2011 net earnings were $78 million, vs. net earnings of $937 million in the second quarter of 2010.
Net sales for the Composites segment increased for both the quarter and year-to-date comparison. For the quarter, net sales were favorably impacted by translating sales denominated in foreign currencies into U.S. dollars and higher selling prices, which accounted for approximately two-thirds and less than one half of the increase over the second quarter of 2010, respectively. Partially offsetting the increase in net sales for the second quarter of 2011 comparison to the second quarter of 2010 was the impact of the May divestiture of the Capivari, Brazil, facility.
Net sales in the Building Materials segment were higher in the second quarter of 2011 and lower for the six-month period ended June 30, 2011, as compared to the same periods in 2010. The increase in net sales during the second quarter was the result of increased sales volumes within the Roofing business. Offsetting this increase were lower sales volumes within the Insulation business and the loss of sales from the divestiture of the U.S. Masonry Products business.
In the Roofing business, net sales increased for both the three- and six-month periods ended June 30, 2011. Sales volume increased for both periods as a result of greater demand due to storm activity. Higher sales volume accounted for substantially all of the increase in net sales for the three months ended June 30, 2011. Selling prices were at similar levels in the second quarter of 2011 compared to the second quarter of 2010 as price increases in the second quarter of 2011 offset price declines in the second half of 2010 and the first quarter of 2011. The slight increase in year-to-date sales was due to higher sales volumes and product mix which were partially offset by lower selling prices in the first three months of 2011.
“Owens Corning delivered a strong second quarter,” said Mike Thaman, chairman and CEO. “The actions we took in the quarter built significant momentum across the company and position us for a strong second half.”
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