TOLEDO, Ohio, Aug. 4 /PRNewswire-FirstCall/ --
- Composites demonstrates leverage as markets sustain
recovery
- Roofing delivers another outstanding quarter
- Board of Directors authorizes additional share repurchase
program for up to 10 million shares
Owens Corning (NYSE: OC) today reported that consolidated net
sales increased 13 percent to $1.4
billion in the second quarter of 2010, compared with
$1.2 billion in the second quarter of
2009.
Owens Corning’s second-quarter 2010 adjusted earnings were
$73 million, or $0.57 per adjusted diluted share, compared with
$62 million, or $0.49 per adjusted diluted share, in the second
quarter of 2009. The company’s second-quarter 2010 net
earnings were $937 million, or
$7.33 per diluted share, compared
with net earnings of $33 million, or
$0.26 per diluted share, in the
second quarter of 2009. See Tables 1, 2 and 3 for a
discussion and reconciliation of these items.
In the quarter, the company reversed an accounting valuation
allowance of $858 million that was
recorded in the third quarter of 2008 against certain U.S. net
deferred tax assets. This non-cash accounting valuation
reversal has no impact on Owens Corning’s cash flow or
liquidity.
Increased global demand in Composites supported improved
capacity utilization and the business demonstrated significant
operating leverage during the quarter. Strong Roofing results
highlighted performance in the Building Materials segment.
Insulation losses narrowed despite continued weakness in the
U.S. housing market.
Consolidated Second-Quarter 2010 Results
- EBIT for the quarter ended June 30,
2010, was $125 million
compared with EBIT of $88 million
during the same period in 2009. Adjusted EBIT (see Table 2)
in the second quarter of 2010 was $130
million, compared with $108
million in the second quarter of 2009.
- Gross margin as a percentage of net sales was 21 percent in the
second quarter of 2010, in line with the same period of 2009.
- In the six months ended June 30,
2010, Owens Corning’s primary safety metric improved
approximately 13 percent over the company’s full-year 2009
performance.
2010 Repurchase Program
Owens Corning today announced that its Board of Directors has
approved a share buy-back program authorizing the company to
repurchase up to 10 million shares of Owens Corning’s outstanding
common stock. This is in addition to the February 2007 program that has 1.9 million shares
remaining. Under the new program, shares may be repurchased
through open market, privately negotiated, or other transactions.
The timing and actual number of shares repurchased will
depend on market conditions and other factors and will be at the
company’s discretion.
“The strength and diversity of our business portfolio produced
another great quarter,” said Mike
Thaman, chairman and chief executive officer.
“Composites demonstrated operating leverage on improved
sequential demand. Roofing continued its strong margin
performance despite weakness in volumes late in the quarter that
have persisted through July.
“Owens Corning’s strong year-to-date performance allows us to
reaffirm our outlook for the year,” said Thaman. “Based on
this outlook, the Board of Directors has authorized an additional
share repurchase program that reflects confidence in our businesses
and our expectation of continued free cash flow generation.”
Outlook
Based on continued strong margins in the Roofing business and
improved results for the Composites segment, Owens Corning is on
track to deliver as much as $450
million in adjusted EBIT in 2010, which equates to 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 demand
improves. The rate of market recovery remains uncertain.
The company has increased production to meet improved market
demand, which will result in significantly higher capacity
utilization during the year as compared to 2009. The
Composites segment continues to realize the benefit of various
cost-reduction actions and prior price increases.
Owens Corning expects that margin improvements seen in its
Roofing business in 2008 and 2009 will continue to drive
profitability in 2010. The company believes that this
business will achieve margins in excess of 20 percent in 2010.
The company estimates that the Insulation business will narrow
its losses in 2010, despite continued weakness in the U.S. housing
market.
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.
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 for the year.
Other Financial Items
- At the end of the second quarter of 2010, Owens Corning had
total debt, excluding the impact of the interest rate swap, less
cash-on-hand of $1.6 billion,
compared with $2.2 billion at the end
of the second quarter of 2009.
- During the second quarter of 2010, Owens Corning completed the
refinancing of its senior revolving credit facility and repaid its
$600 million term loan facility.
- The company continues to focus on generating cash and maintains
a strong balance sheet with ample liquidity. Owens Corning
has no significant debt maturities until the second quarter of 2014
and remains well within compliance of its financial covenants in
the company’s senior revolving credit facility.
- Owens Corning’s federal tax net operating loss carry-forward
was $2.4 billion at the end of the
second quarter of 2010.
Business Segment Highlights
Composites
NET SALES
Net sales in the Composites segment increased 26 percent to
$491 million for the quarter,
compared with $391 million for the
same period in 2009. Substantially all of the increase in net
sales was attributed to higher volumes. Demand in the
Reinforcements business continued the sequential improvement that
began in the first quarter of 2009. Prices improved
sequentially in the second quarter, and were marginally higher as
compared to the same period in 2009.
EBIT
EBIT in the Composites segment increased by $61 million to $42 million for the second
quarter, compared with a loss of $19
million during the same period in 2009. The
improvement in EBIT was primarily due to higher sales volumes,
including the impact of improved capacity utilization.
Production levels stayed in line with sales volumes
throughout the quarter. Manufacturing productivity accounted
for approximately 15 percent of the EBIT increase. EBIT in
the quarter was positively impacted by higher selling prices as
compared with the same period in 2009. Selling prices
continued to increase through the second quarter.
Building Materials
NET SALES
Net sales in the Building Materials segment increased 8 percent
to $937 million for the quarter,
compared with $865 million in the
same period in 2009. The increase was a result of higher
sales in the Roofing and Insulation businesses.
The Roofing business recorded net sales of $573 million in the quarter, compared with
$542 million in the same period in
2009. Substantially all of the increase in net sales for the
quarter comparison was due to higher sales of asphalt to commercial
customers. On a year-to-date basis, higher sales of asphalt
were partially offset by slightly lower selling prices on roofing
products. While selling prices on our roofing products have
been relatively stable since the fourth quarter of 2008, they have
fluctuated from quarter to quarter.
Net sales in Insulation were $328
million in the quarter, compared with $284 million in the same period in 2009.
Higher sales volumes accounted for this increase.
Management estimates that residential insulation demand lags
residential housing starts by approximately three months.
Lagged U.S. housing starts for the second quarter of 2010
were 17 percent higher than those for the same period in 2009,
according to data reported by the U.S. Census Bureau. As a
result, the company is beginning to see some modest improvements in
residential insulation demand.
EBIT
EBIT for the Building Materials segment was $118 million in the quarter, compared with
$143 million in the same period in
2009. The decline of $25
million was driven by lower margins in the Roofing
business.
The Roofing business delivered EBIT of $149 million in the quarter, compared with
$182 million in the same period in
2009. Unit margins decreased as selling prices did not offset
inflation in raw material costs, particularly asphalt.
Decreases in unit margin were partially offset by improved
productivity resulting from efficiency in raw material usage.
The Insulation business recorded a loss of $26 million in the quarter, compared with a loss
of $28 million in the same period in
2009. Improved EBIT in the Insulation business was the result
of modest increases in residential sales volume in North America, including the impact of
leverage on production capacity. Partially offsetting this
improvement was manufacturing performance in certain facilities
that primarily support the commercial and industrial markets.
Next Earnings Announcement
Third-quarter 2010 results will be announced Wednesday, Oct. 27, 2010.
Conference Call and Presentation
Wednesday, Aug. 4, 2010
11 a.m. Eastern
All Callers
Live dial-in telephone number: U.S. 1-866-713-8563 or
International 1-617-597-5311
Passcode: 70882549
(Please dial in 10 minutes before conference call start
time.)
Live webcast: http://www.owenscorning.com/investors
Telephone replay available through Aug.
11, 2010: U.S. 1-888-286-8010 or International
1-617-801-6888
Passcode: 55334789
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 carry-forwards; 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 August 4,
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
(unaudited)
(in millions, except per share
amounts)
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months Ended
|
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
|
|
|
2010
|
|
|
2009
|
|
|
2010
|
|
|
2009
|
|
NET SALES
|
|
$
|
1,378
|
|
$
|
1,219
|
|
$
|
2,643
|
|
$
|
2,293
|
|
COST OF SALES
|
|
|
1,094
|
|
|
969
|
|
|
2,123
|
|
|
1,885
|
|
|
|
Gross margin
|
|
|
284
|
|
|
250
|
|
|
520
|
|
|
408
|
|
OPERATING EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketing and administrative
expenses
|
|
|
138
|
|
|
128
|
|
|
262
|
|
|
252
|
|
|
Science and technology
expenses
|
|
|
18
|
|
|
15
|
|
|
36
|
|
|
30
|
|
|
Charges related to cost
reduction actions
|
|
|
3
|
|
|
8
|
|
|
9
|
|
|
30
|
|
|
Employee emergence equity
program expense
|
|
|
-
|
|
|
6
|
|
|
-
|
|
|
12
|
|
|
Other expenses, net
|
|
|
-
|
|
|
5
|
|
|
5
|
|
|
14
|
|
|
|
Total operating
expenses
|
|
|
159
|
|
|
162
|
|
|
312
|
|
|
338
|
|
EARNINGS BEFORE INTEREST AND
TAXES
|
|
|
125
|
|
|
88
|
|
|
208
|
|
|
70
|
|
Interest expense, net
|
|
|
31
|
|
|
26
|
|
|
57
|
|
|
51
|
|
EARNINGS BEFORE
TAXES
|
|
|
94
|
|
|
62
|
|
|
151
|
|
|
19
|
|
Less: Income tax expense
(benefit)
|
|
|
(844)
|
|
|
29
|
|
|
(835)
|
|
|
15
|
|
Equity in net earnings of
affiliates
|
|
|
1
|
|
|
-
|
|
|
2
|
|
|
1
|
|
NET EARNINGS
|
|
|
939
|
|
|
33
|
|
|
988
|
|
|
5
|
|
Less: Net earnings attributable
to noncontrolling interests
|
|
|
2
|
|
|
-
|
|
|
3
|
|
|
-
|
|
NET EARNINGS ATTRIBUTABLE
TO
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OWENS CORNING
|
|
$
|
937
|
|
$
|
33
|
|
$
|
985
|
|
$
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER COMMON
SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ATTRIBUTABLE TO OWENS CORNING
COMMON
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
7.39
|
|
$
|
0.27
|
|
$
|
7.77
|
|
$
|
0.04
|
|
|
|
Diluted
|
|
$
|
7.33
|
|
$
|
0.26
|
|
$
|
7.72
|
|
$
|
0.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED-AVERAGE COMMON
SHARES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
126.8
|
|
|
124.5
|
|
|
126.7
|
|
|
124.4
|
|
|
|
Diluted
|
|
|
127.9
|
|
|
126.1
|
|
|
127.6
|
|
|
125.9
|
|
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 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
|
|
Six Months Ended
|
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
Charges related to cost
reduction actions and related items
|
$
|
(4)
|
|
$
|
(11)
|
|
$
|
(17)
|
|
$
|
(41)
|
|
Acquisition integration and
transaction costs
|
|
(3)
|
|
|
(8)
|
|
|
(5)
|
|
|
(14)
|
|
Employee emergence equity
program expense
|
|
-
|
|
|
(6)
|
|
|
-
|
|
|
(12)
|
|
Net precious metal lease
expense
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(1)
|
|
Other
|
|
2
|
|
|
5
|
|
|
3
|
|
|
(2)
|
|
|
Total adjusting items
|
$
|
(5)
|
|
$
|
(20)
|
|
$
|
(19)
|
|
$
|
(70)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The reconciliation from net
earnings attributable to Owens Corning to Adjusted
EBIT is shown in the table below (in millions):
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months Ended
|
|
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
NET EARNINGS ATTRIBUTABLE
TO
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OWENS CORNING
|
$
|
937
|
|
$
|
33
|
|
$
|
985
|
|
$
|
5
|
|
|
|
Less: Net earnings attributable
to noncontrolling interests
|
|
2
|
|
|
-
|
|
|
3
|
|
|
-
|
|
NET EARNINGS
|
|
939
|
|
|
33
|
|
|
988
|
|
|
5
|
|
|
Equity in net earnings of
affiliates
|
|
1
|
|
|
-
|
|
|
2
|
|
|
1
|
|
|
|
Income tax expense
(benefit)
|
|
(844)
|
|
|
29
|
|
|
(835)
|
|
|
15
|
|
EARNINGS BEFORE TAXES
|
|
94
|
|
|
62
|
|
|
151
|
|
|
19
|
|
|
Interest expense, net
|
|
31
|
|
|
26
|
|
|
57
|
|
|
51
|
|
EARNINGS BEFORE INTEREST AND
TAXES
|
|
125
|
|
|
88
|
|
|
208
|
|
|
70
|
|
|
Less: adjusting items from
above
|
|
(5)
|
|
|
(20)
|
|
|
(19)
|
|
|
(70)
|
|
ADJUSTED EBIT
|
$
|
130
|
|
$
|
108
|
|
$
|
227
|
|
$
|
140
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 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
|
|
Six Months
Ended
|
|
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
|
|
|
2010
|
|
|
2009
|
|
|
2010
|
|
|
2009
|
|
RECONCILIATION TO
ADJUSTED
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings attributable to
Owens Corning
|
$
|
937
|
|
$
|
33
|
|
$
|
985
|
|
$
|
5
|
|
|
|
Adjustment to remove adjusting
items
|
|
5
|
|
|
20
|
|
|
19
|
|
|
70
|
|
|
|
Adjustment to classify net
precious metal
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
lease expense as
interest
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(1)
|
|
|
|
Adjustment to tax expense to
reflect an
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
expected long-term rate of
25%*
|
|
(869)
|
|
|
9
|
|
|
(878)
|
|
|
(7)
|
|
ADJUSTED EARNINGS
|
$
|
73
|
|
$
|
62
|
|
$
|
126
|
|
$
|
67
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION TO ADJUSTED
DILUTED
|
|
|
EARNINGS PER SHARE ATTRIBUTABLE
TO
|
|
|
OWENS CORNING COMMON
STOCKHOLDERS
|
|
DILUTED EARNINGS PER COMMON
SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ATTRIBUTABLE TO OWENS
CORNING
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMON
STOCKHOLDERS
|
$
|
7.33
|
|
$
|
0.26
|
|
$
|
7.72
|
|
$
|
0.04
|
|
|
|
Adjustment to remove adjusting
items
|
|
0.04
|
|
|
0.16
|
|
|
0.15
|
|
|
0.56
|
|
|
|
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%*
|
|
(6.80)
|
|
|
0.07
|
|
|
(6.88)
|
|
|
(0.06)
|
|
ADJUSTED DILUTED EARNINGS PER
SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ATTRIBUTABLE TO OWENS
CORNING
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMON
STOCKHOLDERS
|
$
|
0.57
|
|
$
|
0.49
|
|
$
|
0.99
|
|
$
|
0.53
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION TO ADJUSTED
DILUTED
|
|
|
SHARES
OUTSTANDING
|
|
Weighted-average shares
outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
used for basic earnings per
share
|
|
126.8
|
|
|
124.5
|
|
|
126.7
|
|
|
124.4
|
|
|
|
Non-vested restricted
shares
|
|
0.7
|
|
|
1.6
|
|
|
0.7
|
|
|
1.5
|
|
|
|
Options to purchase common
stock
|
|
0.4
|
|
|
-
|
|
|
0.2
|
|
|
-
|
|
|
|
Shares related to employee
emergence program
|
|
-
|
|
|
0.4
|
|
|
-
|
|
|
0.4
|
|
Adjusted diluted shares
outstanding **
|
|
127.9
|
|
|
126.5
|
|
|
127.6
|
|
|
126.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*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)
|
|
|
June 30,
|
|
Dec. 31,
|
|
ASSETS
|
2010
|
|
2009
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
30
|
|
$
|
564
|
|
|
Receivables, less allowances of
$20 at June 30, 2010 and $23 at Dec. 31, 2009
|
|
740
|
|
|
552
|
|
|
Inventories
|
|
623
|
|
|
615
|
|
|
Other current assets
|
|
175
|
|
|
123
|
|
|
|
Total current assets
|
|
1,568
|
|
|
1,854
|
|
Property, plant and equipment,
net
|
|
2,711
|
|
|
2,806
|
|
Goodwill
|
|
1,123
|
|
|
1,124
|
|
Intangible assets
|
|
1,159
|
|
|
1,169
|
|
Deferred income taxes
|
|
499
|
|
|
31
|
|
Other non-current
assets
|
|
222
|
|
|
183
|
|
TOTAL ASSETS
|
$
|
7,282
|
|
$
|
7,167
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
|
|
Accounts payable and accrued
liabilities
|
$
|
943
|
|
$
|
923
|
|
|
Short-term debt
|
|
4
|
|
|
11
|
|
|
Long-term debt – current
portion
|
|
6
|
|
|
9
|
|
|
|
Total current
liabilities
|
|
953
|
|
|
943
|
|
Long-term debt, net of current
portion
|
|
1,667
|
|
|
2,177
|
|
Pension plan
liability
|
|
330
|
|
|
340
|
|
Other employee benefits
liability
|
|
293
|
|
|
295
|
|
Deferred income taxes
|
|
73
|
|
|
386
|
|
Other liabilities
|
|
136
|
|
|
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
|
|
3,861
|
|
|
3,847
|
|
|
Accumulated earnings
(deficit)
|
|
246
|
|
|
(739)
|
|
|
Accumulated other comprehensive
deficit
|
|
(237)
|
|
|
(185)
|
|
|
Cost of common stock in treasury
(c)
|
|
(106)
|
|
|
(104)
|
|
|
|
Total Owens Corning
stockholders' equity
|
|
3,765
|
|
|
2,820
|
|
|
Noncontrolling
interests
|
|
35
|
|
|
33
|
|
Total equity
|
|
3,800
|
|
|
2,853
|
|
TOTAL LIABILITIES AND
EQUITY
|
$
|
7,282
|
|
$
|
7,167
|
|
|
|
|
|
|
|
|
|
|
(a) 10 shares authorized; none
issued or outstanding at June 30, 2010 and Dec. 31, 2009
|
|
(b) 400 shares authorized; 133.2
issued and 128.3 outstanding at June 30, 2010; 132.6 issued and
127.8 outstanding at Dec.
31, 2009
|
|
(c) 4.9 shares at June 30, 2010
and 4.8 shares at Dec. 31, 2009
|
|
|
|
|
|
|
|
|
|
|
|
Table 5
Owens Corning and
Subsidiaries
Consolidated Statements of Cash
Flows
(unaudited)
(in millions)
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
|
|
June 30,
|
|
|
|
|
|
|
2010
|
|
|
2009
|
|
NET CASH FLOW PROVIDED BY (USED
FOR) OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
Net earnings
|
$
|
988
|
|
$
|
5
|
|
|
Adjustments to reconcile net
earnings to cash provided by (used for)
|
|
|
|
|
|
|
|
|
operating activities:
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
159
|
|
|
158
|
|
|
|
|
Gain on sale of businesses and
fixed assets
|
|
(3)
|
|
|
(5)
|
|
|
|
|
Impairment of long-lived
assets
|
|
-
|
|
|
2
|
|
|
|
|
Deferred income taxes
|
|
(854)
|
|
|
13
|
|
|
|
|
Provision for pension and other
employee benefits liabilities
|
|
14
|
|
|
22
|
|
|
|
|
Stock-based compensation
expense
|
|
11
|
|
|
21
|
|
|
|
|
Other non-cash
|
|
(2)
|
|
|
(12)
|
|
|
Restricted cash
|
|
-
|
|
|
1
|
|
|
Change in working
capital
|
|
(172)
|
|
|
(269)
|
|
|
Pension fund
contribution
|
|
(12)
|
|
|
(23)
|
|
|
Payments for other employee
benefits liabilities
|
|
(13)
|
|
|
(14)
|
|
|
Other
|
|
18
|
|
|
3
|
|
|
|
|
Net cash flow provided by (used
for) operating activities
|
|
134
|
|
|
(98)
|
|
NET CASH FLOW USED FOR INVESTING
ACTIVITIES
|
|
|
|
|
|
|
|
Additions to plant and
equipment
|
|
(121)
|
|
|
(95)
|
|
|
Proceeds from the sale of assets
or affiliates
|
|
14
|
|
|
20
|
|
|
|
|
Net cash flow used for investing
activities
|
|
(107)
|
|
|
(75)
|
|
NET CASH FLOW PROVIDED BY (USED
FOR) FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
Proceeds from senior revolving
credit facility
|
|
250
|
|
|
259
|
|
|
Payments on senior revolving
credit facility
|
|
(193)
|
|
|
(527)
|
|
|
Proceeds from long-term
debt
|
|
1
|
|
|
345
|
|
|
Payments on long-term
debt
|
|
(604)
|
|
|
(11)
|
|
|
Net decrease in short-term
debt
|
|
(6)
|
|
|
(21)
|
|
|
Purchases of treasury
stock
|
|
(2)
|
|
|
-
|
|
|
|
|
Net cash flow provided by (used
for) financing activities
|
|
(554)
|
|
|
45
|
|
Effect of exchange rate changes
on cash
|
|
(7)
|
|
|
2
|
|
Net decrease in cash and cash
equivalents
|
|
(534)
|
|
|
(126)
|
|
Cash and cash equivalents at
beginning of period
|
|
564
|
|
|
236
|
|
CASH AND CASH EQUIVALENTS AT END
OF PERIOD
|
$
|
30
|
|
$
|
110
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
Net sales
|
$
|
491
|
|
$
|
391
|
|
$
|
954
|
|
$
|
736
|
|
|
% change from
prior year
|
|
26%
|
|
|
-41%
|
|
|
30%
|
|
|
-44%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT
|
$
|
42
|
|
$
|
(19)
|
|
$
|
73
|
|
$
|
(37)
|
|
|
EBIT as a % of net
sales
|
|
9%
|
|
|
-5%
|
|
|
8%
|
|
|
-5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
expense
|
$
|
31
|
|
$
|
24
|
|
$
|
58
|
|
$
|
55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
Six Months Ended
|
|
|
June 30,
|
|
June 30,
|
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
Net sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insulation
|
$
|
328
|
|
$
|
284
|
|
$
|
622
|
|
$
|
566
|
|
|
Roofing
|
|
573
|
|
|
542
|
|
|
1,103
|
|
|
999
|
|
|
Other
|
|
39
|
|
|
42
|
|
|
65
|
|
|
72
|
|
|
Eliminations
|
|
(3)
|
|
|
(3)
|
|
|
(6)
|
|
|
(6)
|
|
Total Building
Materials
|
$
|
937
|
|
$
|
865
|
|
$
|
1,784
|
|
$
|
1,631
|
|
|
% change from
prior year
|
8%
|
|
-9%
|
|
9%
|
|
-3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insulation
|
$
|
(26)
|
|
$
|
(28)
|
|
$
|
(61)
|
|
$
|
(67)
|
|
|
Roofing
|
|
149
|
|
|
182
|
|
|
277
|
|
|
281
|
|
|
Other
|
|
(5)
|
|
|
(11)
|
|
|
(11)
|
|
|
(18)
|
|
Total Building
Materials
|
$
|
118
|
|
$
|
143
|
|
$
|
205
|
|
$
|
196
|
|
|
EBIT as a % of net
sales
|
13%
|
|
17%
|
|
11%
|
|
12%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insulation
|
$
|
28
|
|
$
|
29
|
|
$
|
55
|
|
$
|
59
|
|
|
Roofing
|
|
11
|
|
|
11
|
|
|
21
|
|
|
22
|
|
|
Other
|
|
2
|
|
|
4
|
|
|
5
|
|
|
7
|
|
Total Building
Materials
|
$
|
41
|
|
$
|
44
|
|
$
|
81
|
|
$
|
88
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Owens Corning
Copyright g. 4 PR Newswire