TOLEDO, Ohio, Sept. 20 /PRNewswire/ -- Owens Corning (NYSE: OC)
today announced updated expectations for certain forward-looking
statements related to its outlook for 2010. The update was
provided in advance of investor conferences and meetings scheduled
to occur in September during which these matters may be
discussed.
Following strong first-half demand in the U.S. roofing market,
the company reaffirmed its outlook for 2010 during its second
quarter earnings call based, in part, on its expectation that
full-year U.S. roofing market demand would be broadly flat with
2009, absent additional storm activity. However, the weakness in
market demand in June and July noted on the second quarter earnings
call has persisted throughout the third quarter.
In light of this market weakness, the company now estimates that
U.S. market demand for roofing shingles will be approximately 10
percent lower for the full year 2010 than it was in 2009.
Much of this fall in demand has occurred in the third quarter
where a reduction in customer inventories has contributed to a
decline of approximately 35 percent in market demand from the third
quarter of 2009.
Despite lower demand, the company's Roofing business has
continued to perform well. The company remains comfortable with its
prior guidance that Roofing EBIT margins will exceed 20 percent for
the third quarter and also for full-year 2010.
In addition, the company's two other major businesses,
Insulation and Composites, are performing in line with prior
guidance.
Owens Corning previously stated that it was on track to deliver
as much as $450 million in adjusted
EBIT in 2010. The company believes that, based on its revised
outlook for U.S. roofing market demand, the higher end of the
guidance is no longer achievable. The company expects that its 2010
adjusted EBIT will grow significantly from 2009.
The company plans to provide additional information on its
quarterly earnings conference call scheduled for Oct. 27, 2010.
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 September
20, 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.
SOURCE Owens Corning
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