TOLEDO, Ohio, Oct. 27 /PRNewswire-FirstCall/ --
- Composites Momentum Continues
- Roofing Sustains Strong Margins
- Challenging Insulation Market Persists
Owens Corning (NYSE: OC) today reported that consolidated net
sales decreased from $1.3 billion in
the third quarter of 2009 to $1.2
billion in the third quarter of 2010, a decrease of 12
percent.
Owens Corning's third-quarter 2010 adjusted earnings were
$44 million, or $0.35 per adjusted diluted share, compared with
$78 million, or $0.61 per adjusted diluted share, in the third
quarter of 2009. The company's third-quarter 2010 net
earnings were $58 million, or
$0.46 per diluted share, compared
with net earnings of $80 million, or
$0.63 per diluted share, in the third
quarter of 2009. See Tables 1, 2 and 3 for a discussion and
reconciliation of these items.
Composites benefited from consistently strong global demand and
positive pricing momentum, which produced strong operating
performance. Roofing continued to sustain margins above 20
percent in the quarter despite a significant market correction.
Insulation achieved higher pricing in the quarter and
maintained a disciplined approach to managing capacity as
challenging market conditions persisted.
Consolidated Third-Quarter 2010 Results
- EBIT for the quarter ended Sept. 30,
2010, was $69 million compared
with EBIT of $120 million during the
same period in 2009. Adjusted EBIT (see Table 2) in the third
quarter of 2010 was $90 million,
compared with $135 million in the
third quarter of 2009.
- Gross margin as a percentage of net sales was 20 percent in the
third quarter of 2010 compared with 21 percent in the third quarter
of 2009.
- In the nine months ended Sept. 30,
2010, Owens Corning's primary safety metric improved
approximately 16 percent over the company's full-year 2009
performance.
- During the quarter, the company repurchased 3.7 million shares
of common stock. An additional 8.2 million shares remain
authorized for repurchase under Owens Corning's previously
announced stock buy-back program.
"Owens Corning repurchased $100
million of shares during the quarter based on our strong
outlook," said Mike Thaman, chairman
and chief executive officer. "We're on track to deliver
significant EBIT growth in 2010 in a difficult economic
environment.
"Strong global demand in Composites has fueled momentum in the
segment. We are pleased with the timing of the start-up of
our new manufacturing capacity in China," said Thaman. "Our Building Materials
segment is experiencing challenging market conditions.
Despite that, Roofing and Insulation continue to demonstrate
that they are great businesses for our company."
Outlook
Based on year-to-date results and significant uncertainty in
demand for building materials, Owens Corning expects that adjusted
EBIT for 2010 will likely be in the range of $360 million to $390 million.
In the Composites segment, the company believes that overall
demand will continue to trend upward as global industrial demand
increases. The company's new reinforcements facility in
China will commence operations by
year-end and contribute to profitability in 2011.
Owens Corning expects that the higher margins seen in its
Roofing business in recent years will continue to drive
profitability. Uncertainties that may impact Roofing margins
include competitive pricing pressure and the cost and availability
of raw materials, particularly asphalt.
Continued weakness in the U.S. housing industry will depress new
residential construction-related demand through the remainder of
the year. The timing and pace of recovery in the U.S. housing
market remains uncertain.
Geographic, product, and channel mix of Owens Corning's
Insulation business may continue to moderate the impact of
sustained demand-driven weakness associated with U.S. new
construction. The company is prepared to respond to increased
demand by bringing additional production capacity back on-line if
the recovery of new construction is sooner and faster than
anticipated.
Cash taxes are now expected to be below $25 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 other
activities that support the company's operations.
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 third quarter of 2010, excluding the impact
of the interest rate swap, Owens Corning had total debt less
cash-on-hand of $1.66 billion,
compared with $1.83 billion at the
end of the third quarter of 2009.
- 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
third quarter of 2010.
Business Segment Highlights
Composites
NET SALES
Net sales in the Composites segment increased 6 percent to
$477 million for the third quarter,
compared with $451 million for the
same period in 2009. Substantially all of the increase in net
sales was due to higher sales volumes for both the quarter and
year-to-date comparison. Increases in selling prices also
improved net sales, but this was offset by unfavorable product mix.
The upward trend in selling prices that began in the fourth
quarter of 2009 continued during the third quarter.
EBIT
EBIT in the Composites segment increased to $43 million for the third quarter, compared to
$2 million during the same period in
2009. Substantially all and more than three fourths of the
improvement in EBIT was due to higher sales volumes for the quarter
and year-to-date comparisons, respectively. As a result of
improvements in demand, capacity utilization is currently at the
high levels seen in the first three quarters of 2008. In the
third quarter 2010, selling prices that outpaced inflation
increased EBIT, but were offset by costs associated with
maintenance activities in certain facilities that were completed
during the quarter.
Building Materials
NET SALES
Net sales in the Building Materials segment were $742 million for the quarter, compared with
$937 million in the same period in
2009. The decrease in the third quarter was primarily due to
lower sales in the Roofing business. The year-to-date
decrease was due to lower sales in the Roofing business, partially
offset by higher sales in the Insulation business.
The Roofing business recorded net sales of $404 million in the quarter, compared with
$561 million in the same period in
2009. Substantially all of the decrease in net sales in the
Roofing business for the third quarter 2010 as compared to the same
period in 2009 was due to lower sales volumes. For the
year-to-date comparison, lower sales volumes in 2010 were partially
offset by higher sales of asphalt to commercial customers.
Selling prices of roofing products have been relatively
stable since the fourth quarter of 2008, with some fluctuation from
quarter to quarter.
Net sales in Insulation were $308
million in the quarter, compared with $340 million in the same period in 2009.
Higher selling prices were more than offset by lower sales
volumes in the third quarter 2010. Broad weakness in end
markets more than offset the impact from higher lagged U.S. housing
starts. For the year-to-date comparison, nearly all of the
increase in net sales was due to higher selling prices.
EBIT
EBIT for the Building Materials segment was $67 million in the quarter, compared with
$156 million in the same period in
2009. For both the quarter and the year-to-date comparison,
the EBIT decrease in the Building Materials segment was driven by
lower EBIT in the Roofing business.
Substantially all of the decrease in EBIT in the Roofing
business for the third quarter comparison was due to lower sales
volumes. For the year, unit margins declined slightly as
selling prices did not offset inflation in raw material costs,
which accounted for more than three-fourths of the decrease in
EBIT. The impact of lower sales volumes accounted for more
than one-third of the change in the year-to-date comparison.
Improved productivity, primarily resulting from efficiency in
raw material usage, partially offset these impacts.
EBIT in the Insulation business was down slightly for the third
quarter 2010 as compared to the same period in 2009. The
decrease in EBIT for the third quarter 2010 was primarily due to
manufacturing performance in certain facilities that support
commercial and industrial markets. Selling prices outpaced
inflation for the quarter, but lower sales volumes offset this
impact. For the year-to-date period, EBIT was relatively flat
as compared to the same period in 2009.
Next Earnings Announcement
Fourth-quarter 2010 results will be announced Wednesday, Feb. 16, 2011.
Conference Call and Presentation
Wednesday, Oct. 27, 2010
11 a.m. Eastern
All Callers
Live dial-in telephone number: U.S. 1-866-543-6405 or
International 1-617-213-8897
Passcode: 29248841
(Please dial in 10 minutes before conference call start
time.)
Live webcast: http://www.owenscorning.com/investors
Telephone replay available through Nov.
3, 2010: U.S. 1-888-286-8010 or International
1-617-801-6888
Passcode: 30724941
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 October
27, 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
|
|
Nine Months
Ended
|
|
|
|
|
Sept.
30,
|
|
Sept.
30,
|
|
|
|
|
|
|
2010
|
|
|
2009
|
|
|
2010
|
|
|
2009
|
|
NET SALES
|
|
$
|
1,186
|
|
$
|
1,348
|
|
$
|
3,829
|
|
$
|
3,641
|
|
COST OF SALES
|
|
|
950
|
|
|
1,068
|
|
|
3,073
|
|
|
2,953
|
|
|
|
Gross margin
|
|
|
236
|
|
|
280
|
|
|
756
|
|
|
688
|
|
OPERATING EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketing and administrative
expenses
|
|
|
123
|
|
|
135
|
|
|
385
|
|
|
387
|
|
|
Science and technology
expenses
|
|
|
19
|
|
|
15
|
|
|
55
|
|
|
45
|
|
|
Charges related to cost
reduction actions
|
|
|
15
|
|
|
3
|
|
|
24
|
|
|
33
|
|
|
Employee emergence equity
program expense
|
|
|
-
|
|
|
5
|
|
|
-
|
|
|
17
|
|
|
Other expenses, net
|
|
|
10
|
|
|
2
|
|
|
15
|
|
|
16
|
|
|
|
Total operating
expenses
|
|
|
167
|
|
|
160
|
|
|
479
|
|
|
498
|
|
EARNINGS BEFORE INTEREST AND
TAXES
|
|
|
69
|
|
|
120
|
|
|
277
|
|
|
190
|
|
Interest expense, net
|
|
|
28
|
|
|
30
|
|
|
85
|
|
|
81
|
|
EARNINGS BEFORE
TAXES
|
|
|
41
|
|
|
90
|
|
|
192
|
|
|
109
|
|
Less: Income tax expense
(benefit)
|
|
|
(19)
|
|
|
8
|
|
|
(854)
|
|
|
23
|
|
Equity in net earnings (loss) of
affiliates
|
|
|
1
|
|
|
(1)
|
|
|
3
|
|
|
-
|
|
NET EARNINGS
|
|
|
61
|
|
|
81
|
|
|
1,049
|
|
|
86
|
|
Less: Net earnings attributable
to noncontrolling interests
|
|
|
3
|
|
|
1
|
|
|
6
|
|
|
1
|
|
NET EARNINGS ATTRIBUTABLE TO
OWENS CORNING
|
|
$
|
58
|
|
$
|
80
|
|
$
|
1,043
|
|
$
|
85
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER COMMON SHARE
ATTRIBUTABLE TO OWENS CORNING COMMON
STOCKHOLDERS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.46
|
|
$
|
0.64
|
|
$
|
8.27
|
|
$
|
0.68
|
|
|
|
Diluted
|
|
$
|
0.46
|
|
$
|
0.63
|
|
$
|
8.19
|
|
$
|
0.67
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED-AVERAGE COMMON
SHARES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
125.1
|
|
|
124.5
|
|
|
126.1
|
|
|
124.5
|
|
|
|
Diluted
|
|
|
126.6
|
|
|
127.1
|
|
|
127.4
|
|
|
126.8
|
|
|
|
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
|
|
Nine Months
Ended
|
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
Charges related to cost
reduction actions and related items
|
$
|
(16)
|
|
$
|
(4)
|
|
$
|
(33)
|
|
$
|
(45)
|
|
Acquisition integration and
transaction costs
|
|
(2)
|
|
|
(7)
|
|
|
(7)
|
|
|
(21)
|
|
Employee emergence equity
program expense
|
|
-
|
|
|
(5)
|
|
|
-
|
|
|
(17)
|
|
Net precious metal lease
expense
|
|
(1)
|
|
|
1
|
|
|
(1)
|
|
|
-
|
|
Other
|
|
(2)
|
|
|
-
|
|
|
1
|
|
|
(2)
|
|
|
Total adjusting items
|
$
|
(21)
|
|
$
|
(15)
|
|
$
|
(40)
|
|
$
|
(85)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The reconciliation from
net earnings attributable to Owens Corning to Adjusted EBIT is
shown in the table below (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET EARNINGS ATTRIBUTABLE TO
OWENS CORNING
|
$
|
58
|
|
$
|
80
|
|
$
|
1,043
|
|
$
|
85
|
|
|
|
Less: Net earnings attributable
to noncontrolling interests
|
|
3
|
|
|
1
|
|
|
6
|
|
|
1
|
|
NET EARNINGS
|
|
61
|
|
|
81
|
|
|
1,049
|
|
|
86
|
|
|
Equity in net earnings of
affiliates
|
|
1
|
|
|
(1)
|
|
|
3
|
|
|
-
|
|
|
Income tax expense
(benefit)
|
|
(19)
|
|
|
8
|
|
|
(854)
|
|
|
23
|
|
EARNINGS BEFORE TAXES
|
|
41
|
|
|
90
|
|
|
192
|
|
|
109
|
|
|
Interest expense, net
|
|
28
|
|
|
30
|
|
|
85
|
|
|
81
|
|
EARNINGS BEFORE INTEREST AND
TAXES
|
|
69
|
|
|
120
|
|
|
277
|
|
|
190
|
|
|
Less: adjusting items from
above
|
|
(21)
|
|
|
(15)
|
|
|
(40)
|
|
|
(85)
|
|
ADJUSTED EBIT
|
$
|
90
|
|
$
|
135
|
|
$
|
317
|
|
$
|
275
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
Nine
Months Ended
|
|
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
|
|
|
2010
|
|
|
2009
|
|
|
2010
|
|
|
2009
|
|
RECONCILIATION TO ADJUSTED
EARNINGS
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings attributable to
Owens Corning
|
$
|
58
|
|
$
|
80
|
|
$
|
1,043
|
|
$
|
85
|
|
Adjustment to
remove adjusting items
|
|
21
|
|
|
15
|
|
|
40
|
|
|
85
|
|
Adjustment to
classify net precious metal lease expense as interest
|
|
(1)
|
|
|
1
|
|
|
(1)
|
|
|
-
|
|
Adjustment to
classify net precious metal expected long-term rate of
25%*
|
|
(34)
|
|
|
(18)
|
|
|
(912)
|
|
|
(26)
|
|
ADJUSTED EARNINGS
|
$
|
44
|
|
$
|
78
|
|
$
|
170
|
|
$
|
144
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION TO ADJUSTED
DILUTED EARNINGS PER SHARE ATTRIBUTABLE TO OWENS CORNING COMMON
STOCKHOLDERS
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS PER COMMON
SHARE ATTRIBUTABLE TO OWENS CORNING COMMON
STOCKHOLDERS
|
$
|
0.46
|
|
$
|
0.63
|
|
$
|
8.19
|
|
$
|
0.67
|
|
Adjustment to
remove adjusting items
|
|
0.17
|
|
|
0.12
|
|
|
0.31
|
|
|
0.67
|
|
Adjustment to
classify net precious metal lease expense as interest
|
|
(0.01)
|
|
|
0.01
|
|
|
(0.01)
|
|
|
-
|
|
Adjustment to tax
expense to reflect an expected long-term rate of 25%*
|
|
(0.27)
|
|
|
(0.15)
|
|
|
(7.15)
|
|
|
(0.21)
|
|
ADJUSTED DILUTED EARNINGS PER
SHARE ATTRIBUTABLE TO OWENS CORNING COMMON
STOCKHOLDERS
|
$
|
0.35
|
|
$
|
0.61
|
|
$
|
1.33
|
|
$
|
1.13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION TO ADJUSTED
DILUTED SHARES OUTSTANDING
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares
outstanding used for basic earnings per share
|
|
125.1
|
|
|
124.5
|
|
|
126.1
|
|
|
124.5
|
|
Non-vested
restricted shares
|
|
1.3
|
|
|
2.3
|
|
|
1.1
|
|
|
2.1
|
|
Options to
purchase common stock
|
|
0.2
|
|
|
0.3
|
|
|
0.2
|
|
|
0.2
|
|
Shares related to
employee emergence program
|
|
-
|
|
|
0.1
|
|
|
-
|
|
|
0.1
|
|
Adjusted diluted shares
outstanding **
|
|
126.6
|
|
|
127.2
|
|
|
127.4
|
|
|
126.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*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
|
|
Sept.
30,
|
|
Dec.
31,
|
|
|
2010
|
|
2009
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
35
|
|
$
|
564
|
|
|
Receivables, less
allowances of $21 at Sept. 30, 2010 and $23 at Dec. 31,
2009
|
|
|
625
|
|
|
552
|
|
|
Inventories
|
|
|
687
|
|
|
615
|
|
|
Assets held for sale -
current
|
|
|
18
|
|
|
-
|
|
|
Other current
assets
|
|
|
172
|
|
|
123
|
|
|
|
Total current
assets
|
|
|
1,537
|
|
|
1,854
|
|
Property, plant and
equipment, net
|
|
|
2,751
|
|
|
2,806
|
|
Goodwill
|
|
|
1,124
|
|
|
1,124
|
|
Intangible
assets
|
|
|
1,158
|
|
|
1,169
|
|
Deferred income
taxes
|
|
|
514
|
|
|
31
|
|
Assets held for sale -
non-current
|
|
|
26
|
|
|
-
|
|
Other non-current
assets
|
|
|
255
|
|
|
183
|
|
TOTAL
ASSETS
|
|
$
|
7,365
|
|
$
|
7,167
|
|
LIABILITIES
AND EQUITY
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
$
|
931
|
|
$
|
923
|
|
|
Short-term debt
|
|
|
3
|
|
|
11
|
|
|
Long-term debt – current
portion
|
|
|
4
|
|
|
9
|
|
|
Liabilities held for sale -
current
|
|
|
9
|
|
|
-
|
|
|
|
Total current
liabilities
|
|
|
947
|
|
|
943
|
|
Long-term debt, net of
current portion
|
|
|
1,721
|
|
|
2,177
|
|
Pension plan
liability
|
|
|
321
|
|
|
340
|
|
Other employee benefits
liability
|
|
|
295
|
|
|
295
|
|
Deferred income
taxes
|
|
|
75
|
|
|
386
|
|
Liabilities held for sale -
non-current
|
|
|
1
|
|
|
-
|
|
Other
liabilities
|
|
|
134
|
|
|
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
|
|
|
3,868
|
|
|
3,847
|
|
|
Accumulated earnings
(deficit)
|
|
|
304
|
|
|
(739)
|
|
|
Accumulated other
comprehensive deficit
|
|
|
(163)
|
|
|
(185)
|
|
|
Cost of common stock in
treasury (c)
|
|
|
(207)
|
|
|
(104)
|
|
|
|
Total Owens Corning
stockholders' equity
|
|
|
3,803
|
|
|
2,820
|
|
|
Noncontrolling
interests
|
|
|
38
|
|
|
33
|
|
Total equity
|
|
|
3,841
|
|
|
2,853
|
|
TOTAL
LIABILITIES AND EQUITY
|
|
$
|
7,365
|
|
$
|
7,167
|
|
|
|
|
|
|
|
|
|
|
|
(a) 10 shares authorized; none
issued or outstanding at Sept. 30, 2010 and Dec. 31,
2009
|
|
(b) 400 shares authorized;
133.2 issued and 124.6 outstanding at Sept. 30, 2010; 132.6 issued
and 127.8 outstanding at Dec. 31, 2009
|
|
(c) 8.6 shares at Sept. 30, 2010
and 4.8 shares at Dec. 31, 2009
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
5
Owens
Corning and Subsidiaries
Consolidated
Statements of Cash Flows
(unaudited)
(in
millions)
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
|
|
|
|
|
|
|
Sept.
30,
|
|
|
|
|
|
|
|
|
|
2010
|
|
|
2009
|
|
NET CASH FLOW PROVIDED BY
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
Net earnings
|
|
|
|
$
|
1,049
|
|
$
|
86
|
|
|
Adjustments to reconcile net
earnings to cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
242
|
|
|
238
|
|
|
|
|
Gain on sale of businesses and
fixed assets
|
|
|
|
|
(4)
|
|
|
(10)
|
|
|
|
|
Impairment of long-lived
assets
|
|
|
|
|
-
|
|
|
3
|
|
|
|
|
Deferred income taxes
|
|
|
|
|
(874)
|
|
|
15
|
|
|
|
|
Provision for pension and other
employee benefits liabilities
|
|
|
|
|
23
|
|
|
26
|
|
|
|
|
Stock-based compensation
expense
|
|
|
|
|
16
|
|
|
30
|
|
|
|
|
Other non-cash
|
|
|
|
|
(6)
|
|
|
(15)
|
|
|
Change in working
capital
|
|
|
|
|
(132)
|
|
|
(51)
|
|
|
Pension fund
contribution
|
|
|
|
|
(29)
|
|
|
(34)
|
|
|
Payments for other employee
benefits liabilities
|
|
|
|
|
(19)
|
|
|
(19)
|
|
|
Other
|
|
|
|
|
15
|
|
|
-
|
|
|
|
|
Net cash flow provided by
operating activities
|
|
|
|
|
281
|
|
|
269
|
|
NET CASH FLOW USED FOR INVESTING
ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
Additions to plant and
equipment
|
|
|
|
|
(199)
|
|
|
(151)
|
|
|
Proceeds from the sale of assets
or affiliates
|
|
|
|
|
16
|
|
|
39
|
|
|
|
|
Net cash flow used for investing
activities
|
|
|
|
|
(183)
|
|
|
(112)
|
|
NET CASH FLOW USED FOR FINANCING
ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
Proceeds from senior revolving
credit facility
|
|
|
|
|
406
|
|
|
260
|
|
|
Payments on senior revolving
credit facility
|
|
|
|
|
(315)
|
|
|
(586)
|
|
|
Proceeds from long-term
debt
|
|
|
|
|
1
|
|
|
345
|
|
|
Payments on long-term
debt
|
|
|
|
|
(606)
|
|
|
(13)
|
|
|
Net decrease in short-term
debt
|
|
|
|
|
(8)
|
|
|
(18)
|
|
|
Purchases of treasury
stock
|
|
|
|
|
(102)
|
|
|
-
|
|
|
Other
|
|
|
|
|
2
|
|
|
-
|
|
|
|
|
Net cash flow used for financing
activities
|
|
|
|
|
(622)
|
|
|
(12)
|
|
Effect of exchange rate changes
on cash
|
|
|
|
|
(5)
|
|
|
6
|
|
Net increase (decrease) in cash
and cash equivalents
|
|
|
|
|
(529)
|
|
|
151
|
|
Cash and cash equivalents at
beginning of period
|
|
|
|
|
564
|
|
|
236
|
|
CASH AND CASH EQUIVALENTS AT END
OF PERIOD
|
|
|
|
$
|
35
|
|
$
|
387
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
Nine Months
Ended
|
|
|
|
Sept.
30,
|
|
Sept.
30,
|
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
Net sales
|
$
|
477
|
|
$
|
451
|
|
$
|
1,431
|
|
$
|
1,187
|
|
|
% change from
prior year
|
|
6%
|
|
|
-23%
|
|
|
21%
|
|
|
-38%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT
|
$
|
43
|
|
$
|
2
|
|
$
|
116
|
|
$
|
(35)
|
|
|
EBIT as a % of net
sales
|
|
9%
|
|
|
0%
|
|
|
8%
|
|
|
-3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
expense
|
$
|
32
|
|
$
|
28
|
|
$
|
90
|
|
$
|
83
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
Nine Months
Ended
|
|
|
Sept.
30,
|
|
Sept.
30,
|
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
Net sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insulation
|
$
|
308
|
|
$
|
340
|
|
$
|
930
|
|
$
|
906
|
|
|
Roofing
|
|
404
|
|
|
561
|
|
|
1,507
|
|
|
1,560
|
|
|
Other
|
|
34
|
|
|
38
|
|
|
99
|
|
|
110
|
|
|
Eliminations
|
|
(4)
|
|
|
(2)
|
|
|
(10)
|
|
|
(8)
|
|
Total Building
Materials
|
$
|
742
|
|
$
|
937
|
|
$
|
2,526
|
|
$
|
2,568
|
|
|
% change from
prior year
|
-21%
|
|
-14%
|
|
-2%
|
|
-7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insulation
|
$
|
(16)
|
|
$
|
(9)
|
|
$
|
(77)
|
|
$
|
(76)
|
|
|
Roofing
|
|
91
|
|
|
177
|
|
|
368
|
|
|
458
|
|
|
Other
|
|
(8)
|
|
|
(12)
|
|
|
(19)
|
|
|
(30)
|
|
Total Building
Materials
|
$
|
67
|
|
$
|
156
|
|
$
|
272
|
|
$
|
352
|
|
|
EBIT as a % of net
sales
|
9%
|
|
17%
|
|
11%
|
|
14%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insulation
|
$
|
30
|
|
$
|
31
|
|
$
|
85
|
|
$
|
90
|
|
|
Roofing
|
|
9
|
|
|
9
|
|
|
30
|
|
|
31
|
|
|
Other
|
|
4
|
|
|
4
|
|
|
9
|
|
|
11
|
|
Total Building
Materials
|
$
|
43
|
|
$
|
44
|
|
$
|
124
|
|
$
|
132
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Owens Corning
Copyright . 27 PR Newswire