Owens Corning Q3 earnings decline

Owens Corning has reported consolidated net sales of $1.28 billion in the third quarter of 2012, down 11.7% from $1.45 billion during the same period last year. 

The company reported net earnings of $44 million, compared with net earnings of $124 million in the third quarter of 2011. 

"We are disappointed in our third-quarter financial results," said chairman and CEO Mike Thaman.  "Despite these results, we are proud that our Insulation business achieved profitability in the quarter for the first time in four years, in an improving U.S. construction market. Roofing and Composites are experiencing challenging market conditions in the second half.  We continue to focus on actions that will position these businesses for near-term improvement."

The company expects full-year adjusted earnings before interest and taxes (EBIT) in the range of $280 million to $310 million.  The company's revised adjusted EBIT expectation for the year reflects near-term weakness in roofing demand, higher curtailment and start-up costs in composites, as well as softer growth in global industrial production. 

In the building materials segment, roofing weakness in the latter part of the third quarter is not expected to improve for the rest of the year.  “However, the company expects the factors that have driven margins in recent years will continue to deliver profitability in this business,” according to a company press release.

Owens Corning expects that insulation will improve financial performance for the remainder of the year and narrow losses in 2012 on improved U.S. housing starts and operating leverage in the business.