TOLEDO, Ohio, April 28 /PRNewswire-FirstCall/ --
- Consolidated revenue increased 18 percent over 2009
- Composites demonstrated strong operating leverage and
profitability
- Roofing momentum continued with margins of 24 percent
- 2010 adjusted EBIT outlook raised to as much as $450 million
Owens Corning (NYSE: OC) today reported that consolidated net
sales increased 18 percent to $1.3
billion in the first quarter of 2010, compared with
$1.1 billion in the first quarter of
2009.
Owens Corning’s first-quarter 2010 adjusted earnings were
$53 million, or $0.42 per adjusted diluted share, compared with
$5 million, or $0.04 per adjusted diluted share, in the first
quarter of 2009. The Company’s first-quarter 2010 net earnings were
$48 million, or $0.38 per diluted share, compared with a net loss
of $28 million, or a loss of
$0.23 per diluted share, in the first
quarter of 2009. See Tables 1, 2 and
3 for a discussion and reconciliation of these items.
The Composites segment increased profits in the first quarter,
demonstrating strong operating leverage. In the Roofing business,
the strong momentum continued into the first quarter of 2010 with
an increase in earnings before interest and taxes (EBIT) of nearly
one-third over the same period a year ago. The Insulation
business performed as expected, narrowing its losses despite
continued weakness in the U.S. housing market.
Consolidated First-Quarter 2010 Results
- EBIT for the quarter ended March 31,
2010, was $83 million compared
with an EBIT loss of $18 million
during the same period in 2009. Adjusted EBIT (see Table 2)
in the first quarter of 2010 was $97
million, compared with $32
million in the first quarter of 2009.
- Gross margin as a percentage of net sales was 19 percent in the
first quarter of 2010 compared with 15 percent in the first quarter
of 2009.
- The Company’s safety performance improved 20 percent in the
first quarter of 2010 compared with 2009.
“Owens Corning is off to a strong start in 2010,” said
Mike Thaman, chairman and chief
executive officer. “We demonstrated leverage in our
Composites business, driving a return to healthy profit levels. We
continued our strong momentum in Roofing, generating first-quarter
margins of 24 percent. Based on these results, we have raised our
2010 adjusted EBIT outlook to as much as $450 million, which is $100 million higher than our previous
estimate.”
Outlook
Based on continued strong margins in the Roofing business and
improved results for the Composites segment, Owens Corning expects
that the Company’s 2010 adjusted EBIT could be as high as
$450 million, which equates to an
adjusted earnings per share of about $2.00.
In the Composites segment, the Company believes that overall
demand will continue to trend upward as global industrial activity
improves. The rate of market recovery remains uncertain. The
Company expects to increase production to meet improved market
demand, which will result in higher capacity utilization during the
year as compared to 2009. Additionally, the Composites segment will
continue to realize the benefit of various cost-reduction actions
and prior price increases.
The Company expects strong momentum to continue in the Roofing
business, as actions taken to increase margins in 2008 and 2009
will drive profitability in 2010. Owens Corning believes that
margins in excess of 20 percent will be achieved in 2010.
The Company estimates that the Insulation business will narrow
its losses in 2010, despite continued U.S. residential construction
market weakness.
Cash taxes are expected to be below $35
million in 2010. The Company estimates a long-term effective
tax rate of 25 percent based on the blend of effective tax rates
for its U.S. and non-U.S. operations.
General corporate expense in 2010 is estimated to be between
$80 million and $90 million. General
corporate expense includes corporate staff and activities not
directly related to the operations of the Company’s segments. This
estimate is higher than previous guidance due to increased
performance-based compensation expense.
The Company currently estimates that depreciation and
amortization expense will be approximately $325 million in 2010. Capital expenditures in
2010, excluding precious metal purchases, are estimated to be less
than depreciation and amortization expense expected for the year.
This level of investment will allow the Company to maintain its
current asset platform and to complete the new Composites
Reinforcements plant under construction in China.
Other Financial Items
- At the end of the first quarter of 2010, Owens Corning had
total debt less cash-on-hand of $1.7
billion, compared with $1.6
billion at the end of 2009. Total debt less cash-on-hand was
higher compared with year end due to seasonal working capital
needs.
- Owens Corning’s cash-on-hand of $463
million and access to liquidity provide ample funds to meet
the Company’s cash requirements.
- Global capital and credit markets have materially improved and
management is confident that the refinancing of the Company's bank
facilities will be completed well before the end of the year.
- Owens Corning’s federal tax net operating loss carryforward was
$2.5 billion at the end of the first
quarter of 2010.
Business Segment Highlights
Composites
NET SALES
Substantially all of the increase in net sales was attributed to
higher sales volumes. Demand in the Reinforcements business
continued the sequential improvement that began in the first
quarter of 2009. The impact of translating sales denominated in
foreign currencies into the U.S. dollar also increased net sales,
accounting for approximately 10 percent of the increase. Partially
offsetting these increases were lower selling prices in the first
quarter of 2010 as compared to the first quarter of 2009. Selling
prices in the European Reinforcements business trended downward
through the first nine months of 2009, but began to show some
recovery in the fourth quarter of 2009. While selling prices across
most markets rose in the first quarter of 2010, they were generally
still below those seen in the first quarter of 2009.
EBIT
The improvement in EBIT was primarily due to higher sales
volumes, including the impact of improved leverage of production
capacity. During the quarter, the Company restarted capacity so
that production levels were in line with sales volumes. Favorable
translation rates on earnings denominated in foreign currencies
also increased EBIT in 2010 as compared to 2009. These improvements
were partially offset by unfavorable mix and lower selling prices
in the first quarter of 2010 as compared to the first quarter of
2009, although selling prices have continued to increase in the
first quarter.
Owens Corning continues to evaluate its global manufacturing
network in the Composites segment to respond to current and future
market demand. The Company put plans in place in the first quarter
to downsize certain underutilized manufacturing facilities in
Europe to improve its cost
position in that region. Owens Corning recorded $13 million in charges in the first quarter of
2010 related to these actions. These charges were reported in the
Corporate, Other and Eliminations category.
At the same time, the Company is making an investment to expand
its existing manufacturing facility in Russia. This additional capacity will help
Owens Corning serve an attractive market and support customers.
Building Materials
NET SALES
Net sales in the Building Materials segment were higher in the
first quarter of 2010 than the same period in 2009. Substantially
all of this increase was a result of higher sales in the Roofing
business.
In the Roofing business, higher sales volumes increased net
sales by more than 15 percent over the first quarter of 2009.
Management believes that the higher volumes were primarily driven
by customers restocking inventories from levels that were below
normal at the end of 2009, as well as purchasing in advance of the
Company’s announced price increase. In addition, mix was favorable
in the first quarter of 2010 as compared to the first quarter of
2009. The net sales increase was partially offset by lower selling
prices compared to the first quarter of 2009, driven by competitive
pressures in the market. While selling prices have been relatively
stable since the fourth quarter of 2008, they have fluctuated from
quarter to quarter.
In the Insulation business, higher sales volumes outside of
the United States accounted for
the increase in net sales. Lagged U.S. housing starts for the first
quarter of 2010 were 19 percent lower than those for the same
period in 2009, according to data reported by the U.S. Census
Bureau. Management estimates that residential insulation demand
lags residential housing starts by approximately three months.
EBIT
EBIT for the Building Materials segment improved substantially
in the current year, driven by improvements in the Roofing
business.
In the Roofing business, higher sales volumes, including
improved leverage of production capacity, increased EBIT by almost
one-third over the first quarter of 2009. Additionally, the Roofing
business realized benefits in unit margins from improved
productivity, primarily in efficiency of raw materials usage and
lower raw materials cost, particularly asphalt. Partially
offsetting these EBIT improvements were lower first-quarter 2010
selling prices, driven by competitive pressures in the market.
In the Insulation business, higher sales volumes outside of
the United States accounted for
substantially all of the increase in EBIT.
Next Earnings Announcement
Second-quarter 2010 results will be announced Wednesday, August 4, 2010.
Conference Call and Presentation
Wednesday, April 28, 2010
11 a.m. Eastern
All Callers
Live dial-in telephone number: U.S. 1-800-901-5259 or
International 1-617-786-4514
Passcode: 52318745
(Please dial in 10 minutes before conference call start
time.)
Live webcast: http://www.owenscorning.com/investors
Telephone replay available through May 5,
2010: U.S. 1-888-286-8010 or International
1-617-801-6888
Passcode: 91688823
Replay of webcast also available at:
http://www.owenscorning.com/investors.
Presentation
To view the slide presentation during the conference call,
please log on to the live webcast at
www.owenscorning.com/investors.
About Owens Corning
Owens Corning (NYSE: OC) 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 $4.8 billion in 2009
and about 16,000 employees in 28 countries on five continents.
Additional information is available at www.owenscorning.com.
This news release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. These
forward-looking statements are subject to risks, uncertainties and
other factors that could cause actual results to differ materially
from those projected in these statements. Such factors include,
without limitation: economic and political conditions, including
new legislation or other governmental actions; levels of
residential and commercial construction activity; competitive
factors; pricing factors; weather conditions; our level of
indebtedness; industry and economic conditions that affect the
market and operating conditions of our customers, suppliers or
lenders; availability and cost of energy and materials;
availability and cost of credit; interest rate movements; issues
related to acquisitions, divestitures and joint ventures; our
ability to use our net operating loss carryforwards; achievement of
expected synergies, cost reductions and/or productivity
improvements; issues involving implementation of new business
systems; foreign exchange fluctuations; research and development
activities; difficulties in managing production capacity; labor
disputes; and, factors detailed from time to time in the Company’s
Securities and Exchange Commission filings. The information in this
news release speaks as of the date April 28,
2010 and is subject to change. The Company does not
undertake any duty to update or revise forward-looking statements.
Any distribution of this news release after that date is not
intended and will not be construed as updating or confirming such
information.
Table
1
Owens Corning and
Subsidiaries
Consolidated
Statements of Earnings (Loss)
(unaudited)
(in
millions, except per share amounts)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
2010
|
|
|
2009
|
|
NET SALES
|
|
|
|
|
|
|
|
$
|
1,265
|
|
$
|
1,074
|
|
COST OF SALES
|
|
|
|
|
|
|
|
|
1,029
|
|
|
916
|
|
|
|
Gross margin
|
|
|
|
|
|
|
|
|
236
|
|
|
158
|
|
OPERATING EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketing and administrative expenses
|
|
|
|
|
|
|
|
|
124
|
|
|
124
|
|
|
Science and technology expenses
|
|
|
|
|
|
|
|
|
18
|
|
|
15
|
|
|
Charges related to cost reduction
actions
|
|
|
|
|
|
|
|
|
6
|
|
|
22
|
|
|
Employee emergence equity program
expense
|
|
|
|
|
|
|
|
|
-
|
|
|
6
|
|
|
Other expenses
|
|
|
|
|
|
|
|
|
5
|
|
|
9
|
|
|
|
Total operating expenses
|
|
|
|
|
|
|
|
|
153
|
|
|
176
|
|
EARNINGS (LOSS) BEFORE INTEREST AND
TAXES
|
|
|
|
|
|
|
|
|
83
|
|
|
(18)
|
|
Interest expense, net
|
|
|
|
|
|
|
|
|
26
|
|
|
25
|
|
EARNINGS (LOSS) BEFORE TAXES
|
|
|
|
|
|
|
|
|
57
|
|
|
(43)
|
|
Income tax expense (benefit)
|
|
|
|
|
|
|
|
|
9
|
|
|
(14)
|
|
EARNINGS (LOSS) BEFORE EQUITY IN
NET
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS OF AFFILIATES
|
|
|
|
|
|
|
|
|
48
|
|
|
(29)
|
|
Equity in net earnings of affiliates
|
|
|
|
|
|
|
|
|
1
|
|
|
1
|
|
NET EARNINGS (LOSS)
|
|
|
|
|
|
|
|
|
49
|
|
|
(28)
|
|
Less: Net earnings attributable to noncontrolling
interests
|
|
|
|
|
|
|
|
|
1
|
|
|
-
|
|
NET EARNINGS (LOSS) ATTRIBUTABLE TO
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OWENS CORNING
|
|
|
|
|
|
|
|
$
|
48
|
|
$
|
(28)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS (LOSS) PER COMMON SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ATTRIBUTABLE TO OWENS CORNING COMMON
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
$
|
0.38
|
|
$
|
(0.23)
|
|
|
|
Diluted
|
|
|
|
|
|
|
|
$
|
0.38
|
|
$
|
(0.23)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED-AVERAGE COMMON SHARES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
126.5
|
|
|
124.3
|
|
|
|
Diluted
|
|
|
|
|
|
|
|
|
127.5
|
|
|
124.3
|
|
Owens Corning follows the
authoritative guidance referring to "Noncontrolling Interest in
Consolidated Financial Statements," effective January 1, 2009,
which, among other things, changed the presentation format and
certain captions of the Consolidated Statements of Earnings (Loss)
and Consolidated Balance Sheets. Owens Corning uses the captions
recommended by this standard in its Consolidated Financial
Statements such as net earnings attributable to Owens Corning and
diluted earnings per common share attributable to Owens Corning
common stockholders. However, in the preceding release Owens
Corning has shortened this language to net earnings and earnings
per share (or a slight variation thereof), respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
2
Owens Corning and
Subsidiaries
EBIT
Reconciliation Schedules
(unaudited)
|
|
For purposes of
internal review of Owens Corning's year-over-year operational
performance, management excludes from net earnings attributable to
Owens Corning certain items it believes are not the result of
current operations. Additionally, management views net
precious metal lease expense as a financing item included in net
interest expense rather than as a product cost included in cost of
sales. The adjusted financial measure resulting from these
adjustments is used internally by Owens Corning for various
purposes, including reporting results of operations to the Board of
Directors, analysis of performance, and related employee
compensation measures. Although management believes that
these adjustments result in a measure that provides it a useful
representation of its operational performance, the adjusted measure
should not be considered in isolation or as a substitute for net
earnings attributable to Owens Corning as prepared in accordance
with accounting principles generally accepted in the United
States.
|
|
Adjusting items are shown in
the table below (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
|
|
|
|
2010
|
|
2009
|
|
Net precious metal lease expense
|
|
|
|
|
|
|
$
|
-
|
|
$
|
(1)
|
|
Charges related to cost reduction actions and
related items
|
|
|
|
|
|
|
|
(13)
|
|
|
(30)
|
|
Acquisition integration and transaction
costs
|
|
|
|
|
|
|
|
(2)
|
|
|
(6)
|
|
Other
|
|
|
|
|
|
|
|
1
|
|
|
(7)
|
|
Employee emergence equity program
expense
|
|
|
|
|
|
|
|
-
|
|
|
(6)
|
|
|
Total adjusting items
|
|
|
|
|
|
|
$
|
(14)
|
|
$
|
(50)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The reconciliation from net
earnings (loss) attributable to Owens Corning to Adjusted EBIT is
shown in the table below (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
|
|
|
|
2010
|
|
2009
|
|
NET EARNINGS (LOSS) ATTRIBUTABLE TO
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OWENS CORNING
|
|
|
|
|
|
|
$
|
48
|
|
$
|
(28)
|
|
|
|
Less: Net earnings attributable to noncontrolling
interests
|
|
|
|
|
|
|
|
1
|
|
|
-
|
|
NET EARNINGS (LOSS)
|
|
|
|
|
|
|
|
49
|
|
|
(28)
|
|
|
Equity in net earnings of affiliates
|
|
|
|
|
|
|
|
1
|
|
|
1
|
|
EARNINGS (LOSS) BEFORE EQUITY IN NET
EARNINGS
OF AFFILIATES
|
|
|
|
|
|
|
|
48
|
|
|
(29)
|
|
|
|
Income tax expense (benefit)
|
|
|
|
|
|
|
|
9
|
|
|
(14)
|
|
EARNINGS (LOSS) BEFORE TAXES
|
|
|
|
|
|
|
|
57
|
|
|
(43)
|
|
|
Interest expense, net
|
|
|
|
|
|
|
|
26
|
|
|
25
|
|
EARNINGS (LOSS) BEFORE INTEREST AND
TAXES
|
|
|
|
|
|
|
|
83
|
|
|
(18)
|
|
|
Less: adjusting items from above
|
|
|
|
|
|
|
|
(14)
|
|
|
(50)
|
|
ADJUSTED EBIT
|
|
|
|
|
|
|
$
|
97
|
|
$
|
32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
3
Owens Corning and
Subsidiaries
EPS Reconciliation
Schedules
(unaudited)
(in
millions, except per share data)
|
|
For purposes of
internal review of Owens Corning's year-over-year operational
performance, management excludes from net earnings attributable to
Owens Corning certain items it believes are not the result of
current operations. Additionally, management views net precious
metal lease expense as a financing item included in net interest
expense rather than as a product cost included in cost of sales.
The adjusted financial measures resulting from these adjustments
are used internally by Owens Corning for various purposes,
including reporting results of operations to the Board of
Directors, analysis of performance and related employee
compensation measures. Although management believes that these
adjustments result in measures that provide it a useful
representation of its operational performance, the adjusted
measures should not be considered in isolation or as a substitute
for net earnings attributable to Owens Corning as prepared in
accordance with accounting principles generally accepted in the
United States.
|
|
A reconciliation from net
earnings attributable to Owens Corning to Adjusted Earnings, a
reconciliation from diluted earnings per share to adjusted diluted
earnings per share and a reconciliation from weighted-average
shares outstanding used for basic earnings per share to adjusted
diluted shares outstanding are shown in the tables
below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
2010
|
|
|
2009
|
|
RECONCILIATION TO ADJUSTED
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) attributable to Owens
Corning
|
|
|
|
|
|
|
$
|
48
|
|
$
|
(28)
|
|
|
|
Adjustment to remove adjusting items
|
|
|
|
|
|
|
|
14
|
|
|
50
|
|
|
|
Adjustment to classify net precious metal lease
expense as interest
|
|
|
|
|
|
|
|
-
|
|
|
(1)
|
|
|
|
Adjustment to tax expense to reflect an expected
long-term rate of 25%*
|
|
|
|
|
|
|
|
(9)
|
|
|
(16)
|
|
ADJUSTED EARNINGS
|
|
|
|
|
|
|
$
|
53
|
|
$
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION TO ADJUSTED DILUTED
EARNINGS PER SHARE ATTRIBUTABLE
TO
OWENS CORNING COMMON
STOCKHOLDERS
|
|
DILUTED EARNINGS (LOSS) PER COMMON SHARE
ATTRIBUTABLE TO OWENS CORNING COMMON STOCKHOLDERS
|
|
|
|
|
|
|
$
|
0.38
|
|
$
|
(0.23)
|
|
|
|
Convert to adjusted diluted earnings per
share
|
|
|
|
|
|
|
|
-
|
|
|
0.01
|
|
|
|
Adjustment to remove adjusting items
|
|
|
|
|
|
|
|
0.11
|
|
|
0.40
|
|
|
|
Adjustment to classify net precious metal lease
expense as interest
|
|
|
|
|
|
|
|
-
|
|
|
(0.01)
|
|
|
|
Adjustment to tax expense to reflect an expected
long-term rate of 25%*
|
|
|
|
|
|
|
|
(0.07)
|
|
|
(0.13)
|
|
ADJUSTED DILUTED EARNINGS PER SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ATTRIBUTABLE TO OWENS CORNING
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMON STOCKHOLDERS
|
|
|
|
|
|
|
$
|
0.42
|
|
$
|
0.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION TO ADJUSTED DILUTED SHARES
OUTSTANDING
|
|
|
Weighted-average shares outstanding used for basic
earnings per share
|
|
|
|
|
|
|
|
126.5
|
|
|
124.3
|
|
|
|
Non-vested restricted shares
|
|
|
|
|
|
|
|
0.7
|
|
|
1.0
|
|
|
|
Options to purchase common stock
|
|
|
|
|
|
|
|
0.3
|
|
|
-
|
|
|
|
Shares related to employee emergence
program
|
|
|
|
|
|
|
|
-
|
|
|
0.9
|
|
Adjusted diluted shares outstanding **
|
|
|
|
|
|
|
|
127.5
|
|
|
126.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*The company estimates a long-term sustainable
effective tax rate of 25% based upon the projected blend of its
U.S. and non-U.S. operations.
|
|
**The employee emergence shares are reflected as
outstanding because the employee emergence equity expense has been
removed from adjusted earnings.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
4
Owens Corning and
Subsidiaries
Consolidated
Balance Sheets
(unaudited)
(in
millions)
|
|
|
|
|
|
|
|
ASSETS
|
|
March 31,
|
|
Dec. 31,
|
|
|
2010
|
|
2009
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
463
|
|
$
|
564
|
|
|
Receivables, less allowances
of $22 at March 31, 2010 and $23 at Dec. 31, 2009
|
|
|
743
|
|
|
552
|
|
|
Inventories
|
|
|
623
|
|
|
615
|
|
|
Other current
assets
|
|
|
122
|
|
|
123
|
|
|
|
Total current
assets
|
|
|
1,951
|
|
|
1,854
|
|
Property, plant and equipment,
net
|
|
|
2,780
|
|
|
2,806
|
|
Goodwill
|
|
|
1,124
|
|
|
1,124
|
|
Intangible assets
|
|
|
1,166
|
|
|
1,169
|
|
Deferred income
taxes
|
|
|
24
|
|
|
31
|
|
Other non-current
assets
|
|
|
210
|
|
|
183
|
|
TOTAL ASSETS
|
|
$
|
7,255
|
|
$
|
7,167
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
|
|
|
Accounts payable and accrued
liabilities
|
|
$
|
972
|
|
$
|
923
|
|
|
Short-term debt
|
|
|
1
|
|
|
11
|
|
|
Long-term debt – current
portion
|
|
|
7
|
|
|
9
|
|
|
|
Total current
liabilities
|
|
|
980
|
|
|
943
|
|
Long-term debt, net of current
portion
|
|
|
2,184
|
|
|
2,177
|
|
Pension plan
liability
|
|
|
336
|
|
|
340
|
|
Other employee benefits
liability
|
|
|
297
|
|
|
295
|
|
Deferred income
taxes
|
|
|
394
|
|
|
386
|
|
Other liabilities
|
|
|
137
|
|
|
143
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
Mandatorily redeemable
noncontrolling interest
|
|
|
30
|
|
|
30
|
|
OWENS CORNING STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
Preferred stock, par value
$0.01 per share (a)
|
|
|
-
|
|
|
-
|
|
|
Common stock, par value $0.01
per share (b)
|
|
|
1
|
|
|
1
|
|
|
Additional paid in
capital
|
|
|
3,853
|
|
|
3,847
|
|
|
Accumulated deficit
|
|
|
(691)
|
|
|
(739)
|
|
|
Accumulated other
comprehensive deficit
|
|
|
(194)
|
|
|
(185)
|
|
|
Cost of common stock in
treasury (c)
|
|
|
(106)
|
|
|
(104)
|
|
|
|
Total Owens Corning
stockholders' equity
|
|
|
2,863
|
|
|
2,820
|
|
|
Noncontrolling
interests
|
|
|
34
|
|
|
33
|
|
Total equity
|
|
|
2,897
|
|
|
2,853
|
|
TOTAL LIABILITIES AND
EQUITY
|
|
$
|
7,255
|
|
$
|
7,167
|
|
|
|
|
|
|
|
|
|
|
|
(a) 10 shares authorized; none issued or
outstanding at March 31, 2010 and Dec. 31, 2009
|
|
(b) 400 shares
authorized; 133.2 issued and 128.3 outstanding at March 31, 2010;
132.6 issued and 127.8 outstanding at
Dec. 31,
2009
|
|
(c) 4.9 shares at March 31, 2010 and 4.8 shares at
Dec. 31, 2009
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
5
Owens Corning and
Subsidiaries
Consolidated
Statements of Cash Flows
(unaudited)
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
|
|
|
|
2010
|
|
|
2009
|
|
NET CASH FLOW USED FOR OPERATING
ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
|
|
|
|
$
|
49
|
|
$
|
(28)
|
|
|
Adjustments to reconcile net earnings (loss) to
cash used for
|
|
|
|
|
|
|
|
|
|
|
|
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
80
|
|
|
84
|
|
|
|
|
Gain on sale of businesses and fixed
assets
|
|
|
|
|
(2)
|
|
|
-
|
|
|
|
|
Impairment of long-lived assets
|
|
|
|
|
-
|
|
|
2
|
|
|
|
|
Deferred income taxes
|
|
|
|
|
5
|
|
|
(5)
|
|
|
|
|
Provision for pension and other employee benefits
liabilities
|
|
|
|
|
7
|
|
|
6
|
|
|
|
|
Stock-based compensation expense
|
|
|
|
|
7
|
|
|
14
|
|
|
|
|
Other non-cash
|
|
|
|
|
(2)
|
|
|
12
|
|
|
Change in working capital
|
|
|
|
|
(158)
|
|
|
(360)
|
|
|
Pension fund contribution
|
|
|
|
|
(8)
|
|
|
(12)
|
|
|
Payments for other employee benefits
liabilities
|
|
|
|
|
(6)
|
|
|
(6)
|
|
|
Other
|
|
|
|
|
1
|
|
|
5
|
|
|
|
|
Net cash flow used for operating
activities
|
|
|
|
|
(27)
|
|
|
(288)
|
|
NET CASH FLOW USED FOR INVESTING
ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
Additions to plant and equipment
|
|
|
|
|
(63)
|
|
|
(40)
|
|
|
Proceeds from the sale of assets or
affiliates
|
|
|
|
|
5
|
|
|
3
|
|
|
|
|
Net cash flow used for investing
activities
|
|
|
|
|
(58)
|
|
|
(37)
|
|
NET CASH FLOW PROVIDED BY (USED FOR) FINANCING
ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
Proceeds from senior revolving credit
facility
|
|
|
|
|
-
|
|
|
226
|
|
|
Payments on senior revolving credit
facility
|
|
|
|
|
-
|
|
|
(30)
|
|
|
Proceeds from long-term debt
|
|
|
|
|
-
|
|
|
1
|
|
|
Payments on long-term debt
|
|
|
|
|
(3)
|
|
|
(5)
|
|
|
Net decrease in short-term debt
|
|
|
|
|
(9)
|
|
|
(11)
|
|
|
Purchases of treasury stock
|
|
|
|
|
(2)
|
|
|
-
|
|
|
|
|
Net cash flow provided by (used for) financing
activities
|
|
|
|
|
(14)
|
|
|
181
|
|
Effect of exchange rate changes on cash
|
|
|
|
|
(2)
|
|
|
(2)
|
|
Net decrease in cash and cash
equivalents
|
|
|
|
|
(101)
|
|
|
(146)
|
|
Cash and cash equivalents at beginning of
period
|
|
|
|
|
564
|
|
|
236
|
|
CASH AND CASH EQUIVALENTS AT END OF
PERIOD
|
|
|
|
$
|
463
|
|
$
|
90
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
6
Owens Corning and
Subsidiaries
Segment and
Business Information
(unaudited)
|
|
Composites
|
|
The table below provides a
summary of net sales, EBIT and depreciation and amortization
expense for the Composites segment (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
|
|
2010
|
|
2009
|
|
Net sales
|
|
|
|
|
|
|
$
|
463
|
|
$
|
345
|
|
|
% change from prior
year
|
|
|
|
|
|
|
|
34%
|
|
|
-48%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT
|
|
|
|
|
|
|
$
|
31
|
|
$
|
(18)
|
|
|
EBIT as a % of net
sales
|
|
|
|
|
|
|
|
7%
|
|
|
-5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
expense
|
|
|
|
|
|
|
$
|
27
|
|
$
|
31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials
|
|
The table below provides a
summary of net sales, EBIT and depreciation and amortization
expense for the Building Materials segment and our businesses
within this segment (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
March 31,
|
|
|
|
|
|
|
|
2010
|
|
2009
|
|
Net sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insulation
|
|
|
|
|
|
|
$
|
294
|
|
$
|
282
|
|
|
Roofing
|
|
|
|
|
|
|
|
530
|
|
|
457
|
|
|
Other
|
|
|
|
|
|
|
|
26
|
|
|
30
|
|
|
Eliminations
|
|
|
|
|
|
|
|
(3)
|
|
|
(3)
|
|
Total Building Materials
|
|
|
|
|
|
|
$
|
847
|
|
$
|
766
|
|
|
% change from prior
year
|
|
|
|
|
11%
|
|
5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insulation
|
|
|
|
|
|
|
$
|
(35)
|
|
$
|
(39)
|
|
|
Roofing
|
|
|
|
|
|
|
|
128
|
|
|
99
|
|
|
Other
|
|
|
|
|
|
|
|
(6)
|
|
|
(7)
|
|
Total Building Materials
|
|
|
|
|
|
|
$
|
87
|
|
$
|
53
|
|
|
EBIT as a % of net
sales
|
|
|
|
|
10%
|
|
7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insulation
|
|
|
|
|
|
|
$
|
27
|
|
$
|
30
|
|
|
Roofing
|
|
|
|
|
|
|
|
10
|
|
|
11
|
|
|
Other
|
|
|
|
|
|
|
|
3
|
|
|
3
|
|
Total Building Materials
|
|
|
|
|
|
|
$
|
40
|
|
$
|
44
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Owens Corning