TOLEDO, Ohio, Feb. 16, 2011 /PRNewswire/ -- Owens Corning
(NYSE: OC) today reported consolidated net sales of $5.0 billion, a 4-percent increase from net sales
of $4.8 billion in 2009.
Full-year adjusted earnings were $199
million, or $1.57 per diluted
share, compared with $145 million, or
$1.14 per diluted share, in 2009.
Net earnings were $933 million,
or $7.37 per diluted share, compared
with net earnings of $64 million, or
$0.50 per diluted share, in 2009.
Fourth-quarter 2010 adjusted earnings were $29 million, or $0.23 per diluted share, compared with
$1 million, or $0.01 per diluted share, one year ago. Net
loss in the fourth quarter of 2010 totaled $110 million, or $0.89 per diluted share, compared with a net loss
of $21 million, or $0.17 per diluted share, in 2009. Full-year
and fourth-quarter results were both impacted by impairments
associated with the sale of the North American Masonry Products
business, as well as certain tax-related items. See Tables 1,
2 and 3 for a discussion and reconciliation of these items.
“Our 2010 financial performance was strong,” said Chairman and
Chief Executive Officer Mike Thaman.
“Owens Corning’s portfolio of market-leading businesses
delivered robust profitability despite markets that continued to
perform well below their potential.
“Improving global demand fueled impressive operating leverage in
Composites,” Thaman added. “In Building Materials, our
Roofing business delivered 22-percent operating margins despite
enduring a weak market. Looking forward to 2011, we expect
improving demand in all of our major end markets, and we are
confident in our ability to deliver another year of adjusted
earnings per share growth of more than 30 percent.”
Consolidated Fourth-Quarter and 2010 Results
- Owens Corning’s primary safety metric improved by approximately
23 percent over the company’s full-year 2009 performance, the ninth
consecutive year of safety improvement.
- Full-year adjusted earnings before interest and taxes (adjusted
EBIT) were $381 million in 2010
compared with $308 million in 2009
(see Table 2). Full-year EBIT in 2010 was $206 million, compared with $192 million in 2009.
- Adjusted EBIT in the fourth quarter of 2010 was $64 million, compared with $33 million in 2009 (see Table 2). EBIT for
the fourth quarter was a loss of $71
million compared with EBIT of $2
million during the same period in 2009.
- Gross margin as a percentage of net sales was 19 percent in
2010 compared with 18 percent in 2009.
- In the fourth quarter, the company repurchased 550,000 shares
of common stock under the previously announced stock buy-back
program. During the year, the company repurchased 4.2 million
shares. An additional 7.7 million shares remain authorized
for repurchase.
Masonry Products Divestiture
During the fourth quarter, Owens Corning reached a definitive
agreement with Boral Industries Ltd. to sell its North American
Masonry Products business for a minimum of $90 million. The company received
$45 million at the closing of the
transaction in 2010. In addition, Owens Corning will receive
a minimum of $45 million in 2014.
Outlook
Owens Corning expects that 2011 adjusted EBIT will grow to
$475 million. This translates
to adjusted earnings per share (EPS) growth of more than 30
percent.
In the Composites segment, the company believes that sales
volume will continue to trend upward as global industrial demand
increases throughout 2011. The company’s new reinforcements
facility in Hangzhou, China, began
operations late in the fourth quarter and is expected to begin
contributing to profitability in the first half of 2011. The
company expects to complete the expansion of its Gous-Khroustalny,
Russia, facility by the end of
2011.
Owens Corning expects that the higher margins seen in its
Roofing business in recent years will continue to drive
profitability. The company believes full-year adjusted EBIT
margins of 20 percent are achievable in 2011. 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 is expected to
impact new residential construction-related demand through 2011.
The company expects U.S. new residential construction to
improve modestly in the second half of 2011, however, the timing
and pace of recovery remains uncertain.
Owens Corning believes the Insulation business will benefit from
its recently launched EcoTouch™ insulation, an innovative product
designed to meet the green building demands of today and tomorrow.
In addition, earlier this week Owens Corning and Masco
Corporation (NYSE: MAS) announced an agreement designating Owens
Corning as the primary insulation provider to Masco Contractor
Services.
Cash taxes are expected to be less than $30 million in 2011. The company estimates
a long-term effective tax rate of 25 percent to 28 percent based on
the blend of effective tax rates for its U.S. and non-U.S.
operations. The effective book tax rate for 2011 is expected
to be 28 percent.
General corporate expense in 2011 is estimated to be between
$80 million and $90 million.
General corporate expense includes corporate staff and other
activities that support the operations.
Depreciation and amortization expense will be approximately
$340 million in 2011.
Capital expenditures in 2011 are expected to total approximately
$400 million. The company
expects that capital expenditures will be 110 percent of
depreciation and amortization over the next three years.
Other Financial Items
- At the end of 2010, excluding the impact of interest rate
swaps, Owens Corning had total debt, less cash-on-hand of
$1.57 billion, compared with
$1.65 billion at the end 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.
- Owens Corning’s federal tax net operating loss carry-forward
was $2.4 billion at the end of
2010.
Business Segment Highlights
Composites
NET SALES
Net sales in the Composites segment increased 17 percent to
$1.9 billion in 2010, compared
with
$1.6 billion in 2009.
Substantially all of the increase in net sales was due to
higher sales volumes as global demand improved in 2010. The
upward trend in selling prices that began in the fourth quarter of
2008 continued through the end of 2010. As a result, selling
prices for all markets within the Reinforcements business at the
end of 2010 are approaching levels seen prior to the 2008 global
economic downturn.
EBIT
EBIT in the Composites segment increased to $175 million in 2010, compared to a loss of
$33 million in 2009. More than
three-quarters of the improvement in 2010 was driven by higher
sales volumes, including the impact of improved capacity
utilization, which returned to levels last seen in 2008.
Higher selling prices accounted for the remainder of the
increase in EBIT. These improvements resulted in the
Composites segment achieving double-digit EBIT margins for the
fourth quarter of 2010.
Building Materials
NET SALES
Net sales in the Building Materials segment decreased 2 percent
to $3.2 billion, compared with
$3.3 billion in 2009. The
decrease was primarily due to lower net sales in the Roofing
business.
Weakness in asphalt shingle demand began late in the second
quarter of 2010 and persisted for the remainder of the year.
Selling prices for the company's roofing shingle products
were down slightly in 2010 compared with 2009, although prices have
remained relatively stable since the fourth quarter of 2008, with
modest quarterly fluctuation.
Net sales were relatively flat year-over-year in the Insulation
business, which includes a diverse portfolio with a broad
geographic, market, and channel mix. Higher selling prices
were offset by lower sales volumes. Sales volumes were
impacted by the absence of demand from the 2009 Australian stimulus
and broad end-market weakness, predominantly in U.S. retail
channels.
EBIT
EBIT for the Building Materials segment decreased to
$281 million for 2010, compared with
$401 million in 2009.
Substantially all of the decrease in EBIT during the year was
the result of lower profitability within the Roofing business.
Margins in the Roofing business were down due to lower volumes,
higher raw material costs and slightly lower selling prices,
partially offset by manufacturing productivity improvements.
In the Insulation business, EBIT was relatively flat in 2010
compared to 2009. Higher selling prices and favorable product
mix were offset by lower sales volumes, including the impact of low
capacity utilization, and inflation in raw material costs.
Next Earnings Announcement
First-quarter 2011 results will be announced on Wednesday, Apr. 27, 2011.
Conference Call and Presentation
Wednesday, Feb. 16, 2011
11 a.m. Eastern
All Callers
Live dial-in telephone number: U.S. 1-866-730-5766 or
International 1-857-350-1590
Passcode: 69810919
(Please dial in 10 minutes before conference call start
time.)
Live webcast: http://www.owenscorning.com/investors
Telephone replay available through Feb.
23, 2011: U.S. 1-888-286-8010 or International
1-617-801-6888
Passcode: 35253629
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 $5.0 billion
in 2010 and about 15,000 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 expansion of our production capacity; 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 February 16, 2011 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)
|
|
|
|
|
|
Twelve
Months Ended
|
|
|
|
|
|
Dec.
31,
|
|
|
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
NET
SALES
|
$
|
4,997
|
|
$
|
4,803
|
|
$
|
5,847
|
|
|
COST OF SALES
|
|
4,041
|
|
|
3,954
|
|
|
4,925
|
|
|
|
Gross margin
|
|
956
|
|
|
849
|
|
|
922
|
|
|
OPERATING EXPENSES
|
|
|
|
|
|
|
|
|
|
|
Marketing and administrative
expenses
|
|
516
|
|
|
522
|
|
|
617
|
|
|
Science and technology
expenses
|
|
76
|
|
|
61
|
|
|
69
|
|
|
Charges related to cost
reduction actions
|
|
29
|
|
|
34
|
|
|
7
|
|
|
Employee emergence equity
program expense
|
|
-
|
|
|
29
|
|
|
26
|
|
|
Other expenses (income),
net
|
|
129
|
|
|
11
|
|
|
(31)
|
|
|
|
Total operating
expenses
|
|
750
|
|
|
657
|
|
|
688
|
|
|
EARNINGS BEFORE INTEREST AND
TAXES
|
|
206
|
|
|
192
|
|
|
234
|
|
|
Interest expense, net
|
|
110
|
|
|
111
|
|
|
116
|
|
|
EARNINGS BEFORE
TAXES
|
|
96
|
|
|
81
|
|
|
118
|
|
|
Less: Income tax expense
(benefit)
|
|
(840)
|
|
|
14
|
|
|
931
|
|
|
Equity in net earnings of
affiliates
|
|
4
|
|
|
-
|
|
|
2
|
|
|
NET EARNINGS
(LOSS)
|
|
940
|
|
|
67
|
|
|
(811)
|
|
|
Less: Net earnings attributable
to noncontrolling interests
|
|
7
|
|
|
3
|
|
|
2
|
|
|
NET EARNINGS (LOSS) ATTRIBUTABLE
TO
|
|
|
|
|
|
|
|
|
|
|
OWENS CORNING
|
$
|
933
|
|
$
|
64
|
|
$
|
(813)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS (LOSS) PER COMMON SHARE
ATTRIBUTABLE
|
|
|
|
|
|
|
|
|
|
|
TO OWENS CORNING COMMON
STOCKHOLDERS
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
7.43
|
|
$
|
0.51
|
|
$
|
(6.38)
|
|
|
|
Diluted
|
$
|
7.37
|
|
$
|
0.50
|
|
$
|
(6.38)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED-AVERAGE COMMON
SHARES
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
125.6
|
|
|
124.8
|
|
|
127.4
|
|
|
|
Diluted
|
|
126.6
|
|
|
127.1
|
|
|
127.4
|
|
|
|
|
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
|
|
Twelve
Months Ended
|
|
|
|
|
Dec.
31,
|
|
Dec.
31,
|
|
|
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
Net precious metal lease
expense
|
$
|
(1)
|
|
$
|
-
|
|
$
|
(2)
|
|
$
|
-
|
|
|
Charges related to cost
reduction actions and related items
|
|
(7)
|
|
|
(8)
|
|
|
(40)
|
|
|
(53)
|
|
|
Acquisition integration and
transaction costs and other
|
|
(6)
|
|
|
(12)
|
|
|
(13)
|
|
|
(33)
|
|
|
Gains (losses) on sales of
assets and related charges
|
|
(120)
|
|
|
1
|
|
|
(120)
|
|
|
(1)
|
|
|
Employee emergence equity
program expense
|
|
-
|
|
|
(12)
|
|
|
-
|
|
|
(29)
|
|
|
Total adjusting items
|
$
|
(135)
|
|
$
|
(31)
|
|
$
|
(175)
|
|
$
|
(116)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The reconciliation from
net earnings attributable to Owens Corning to Adjusted EBIT is
shown in the table below (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve
Months Ended
|
|
|
|
|
Dec.
31,
|
|
Dec.
31,
|
|
|
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
NET EARNINGS ATTRIBUTABLE
TO
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OWENS CORNING
|
$
|
(110)
|
|
$
|
(21)
|
|
$
|
933
|
|
$
|
64
|
|
|
|
Less: Net earnings attributable
to noncontrolling interests
|
|
1
|
|
|
2
|
|
|
7
|
|
|
3
|
|
|
NET EARNINGS
|
|
(109)
|
|
|
(19)
|
|
|
940
|
|
|
67
|
|
|
Equity in net earnings of
affiliates
|
|
1
|
|
|
-
|
|
|
4
|
|
|
-
|
|
|
Income tax expense
(benefit)
|
|
14
|
|
|
(9)
|
|
|
(840)
|
|
|
14
|
|
|
EARNINGS BEFORE TAXES
|
|
(96)
|
|
|
(28)
|
|
|
96
|
|
|
81
|
|
|
Interest expense, net
|
|
25
|
|
|
30
|
|
|
110
|
|
|
111
|
|
|
EARNINGS BEFORE INTEREST AND
TAXES
|
|
(71)
|
|
|
2
|
|
|
206
|
|
|
192
|
|
|
Less: adjusting items from
above
|
|
(135)
|
|
|
(31)
|
|
|
(175)
|
|
|
(116)
|
|
|
ADJUSTED EBIT
|
$
|
64
|
|
$
|
33
|
|
$
|
381
|
|
$
|
308
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 (loss) attributable to Owens Corning to Adjusted Earnings
and a reconciliation from diluted earnings (loss) per share to
adjusted diluted earnings per share are shown in the tables
below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve
Months Ended
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
|
2010
|
|
|
2009
|
|
|
2010
|
|
|
2009
|
|
|
RECONCILIATION TO
ADJUSTED
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) attributable
to Owens Corning
|
$
|
(110)
|
|
$
|
(21)
|
|
$
|
933
|
|
$
|
64
|
|
|
|
Adjustment to remove adjusting
items net of an
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
effective tax rate of
25%*
|
|
101
|
|
|
23
|
|
|
131
|
|
|
87
|
|
|
|
Adjustment to classify net
precious metal lease
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
expense as interest net of an
effective
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
tax rate of 25%*
|
|
(1)
|
|
|
-
|
|
|
(2)
|
|
|
-
|
|
|
|
Adjustment to record tax expense
to reflect an
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
effective tax rate of
25%*
|
|
39
|
|
|
(1)
|
|
|
(863)
|
|
|
(6)
|
|
|
ADJUSTED EARNINGS
|
$
|
29
|
|
$
|
1
|
|
$
|
199
|
|
$
|
145
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
$
|
(0.89)
|
|
$
|
(0.17)
|
|
$
|
7.37
|
|
$
|
0.50
|
|
|
|
Adjustment to remove adjusting
items net of an
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
effective tax rate of
25%*
|
|
0.82
|
|
|
0.18
|
|
|
1.04
|
|
|
0.68
|
|
|
|
Adjustment to classify net
precious metal lease
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
expense as interest net of an
effective
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
tax rate of 25%*
|
|
(0.01)
|
|
|
-
|
|
|
(0.02)
|
|
|
-
|
|
|
|
Adjustment to record tax expense
to reflect an
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
effective tax rate of
25%*
|
|
0.31
|
|
|
-
|
|
|
(6.82)
|
|
|
(0.04)
|
|
|
ADJUSTED DILUTED EARNINGS PER
SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ATTRIBUTABLE TO OWENS
CORNING
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMON
STOCKHOLDERS
|
$
|
0.23
|
|
$
|
0.01
|
|
$
|
1.57
|
|
$
|
1.14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED-AVERAGE COMMON
SHARES
|
|
|
|
Basic
|
|
123.7
|
|
|
125.7
|
|
|
125.6
|
|
|
124.8
|
|
|
|
Diluted
|
|
124.9
|
|
|
127.6
|
|
|
126.6
|
|
|
127.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
4
Owens
Corning and
Subsidiaries
Consolidated
Balance Sheets
(unaudited)
(in
millions)
|
|
|
|
|
ASSETS
|
|
Dec.
31,
|
|
Dec.
31,
|
|
|
2010
|
|
2009
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
52
|
|
$
|
564
|
|
|
Receivables, less
allowances of $19 at Dec. 31, 2010 and $23 at Dec. 31,
2009
|
|
|
546
|
|
|
552
|
|
|
Inventories
|
|
|
620
|
|
|
615
|
|
|
Assets held for sale -
current
|
|
|
16
|
|
|
-
|
|
|
Other current
assets
|
|
|
174
|
|
|
123
|
|
|
|
Total current
assets
|
|
|
1,408
|
|
|
1,854
|
|
|
Property, plant and
equipment, net
|
|
|
2,754
|
|
|
2,806
|
|
|
Goodwill
|
|
|
1,088
|
|
|
1,124
|
|
|
Intangible
assets
|
|
|
1,090
|
|
|
1,169
|
|
|
Deferred income
taxes
|
|
|
529
|
|
|
31
|
|
|
Assets held for sale -
non-current
|
|
|
26
|
|
|
-
|
|
|
Other non-current
assets
|
|
|
263
|
|
|
183
|
|
|
TOTAL
ASSETS
|
|
$
|
7,158
|
|
$
|
7,167
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND EQUITY
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
$
|
942
|
|
$
|
923
|
|
|
Short-term debt
|
|
|
1
|
|
|
11
|
|
|
Long-term debt – current
portion
|
|
|
5
|
|
|
9
|
|
|
Liabilities held for sale -
current
|
|
|
7
|
|
|
-
|
|
|
|
Total current
liabilities
|
|
|
955
|
|
|
943
|
|
|
Long-term debt, net of
current portion
|
|
|
1,629
|
|
|
2,177
|
|
|
Pension plan
liability
|
|
|
378
|
|
|
340
|
|
|
Other employee benefits
liability
|
|
|
298
|
|
|
295
|
|
|
Deferred income
taxes
|
|
|
75
|
|
|
386
|
|
|
Other
liabilities
|
|
|
137
|
|
|
143
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
Mandatorily redeemable
noncontrolling interest
|
|
|
-
|
|
|
30
|
|
|
OWENS CORNING
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Common stock, par value
$0.01 per share (b)
|
|
|
1
|
|
|
1
|
|
|
Additional paid in
capital
|
|
|
3,876
|
|
|
3,847
|
|
|
Accumulated earnings
(deficit)
|
|
|
194
|
|
|
(739)
|
|
|
Accumulated other
comprehensive deficit
|
|
|
(194)
|
|
|
(185)
|
|
|
Cost of common stock in
treasury (c)
|
|
|
(229)
|
|
|
(104)
|
|
|
|
Total Owens Corning
stockholders' equity
|
|
|
3,648
|
|
|
2,820
|
|
|
Noncontrolling
interests
|
|
|
38
|
|
|
33
|
|
|
Total equity
|
|
|
3,686
|
|
|
2,853
|
|
|
TOTAL
LIABILITIES AND EQUITY
|
|
$
|
7,158
|
|
$
|
7,167
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) 10 shares authorized; none
issued or outstanding at Dec. 31, 2010 and Dec. 31, 2009
|
|
|
(b) 400 shares authorized;
133.2 issued and 124.1 outstanding at Dec. 31, 2010; 132.6 issued
and 127.8 outstanding at Dec. 31, 2009
|
|
|
(c) 9.1 shares at Dec. 31, 2010
and 4.8 shares at Dec. 31, 2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
5
Owens
Corning and Subsidiaries
Consolidated
Statements of Cash Flows
(unaudited)
(in
millions)
|
|
|
|
|
|
|
|
|
Twelve
Months Ended
|
|
|
|
|
|
|
Dec.
31,
|
|
|
|
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
NET CASH FLOW PROVIDED BY
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
|
$
|
940
|
|
$
|
67
|
|
$
|
(811)
|
|
|
Adjustments to reconcile net
earnings (loss) to cash provided by
|
|
|
|
|
|
|
|
|
|
|
|
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
320
|
|
|
325
|
|
|
331
|
|
|
|
|
(Gain) loss on sale of
businesses and fixed assets
|
|
2
|
|
|
(9)
|
|
|
(51)
|
|
|
|
|
Asset Impairments
|
|
117
|
|
|
3
|
|
|
11
|
|
|
|
|
Deferred income taxes
|
|
(867)
|
|
|
17
|
|
|
893
|
|
|
|
|
Provision for pension and other
employee benefits liabilities
|
|
26
|
|
|
40
|
|
|
30
|
|
|
|
|
Stock-based compensation
expense
|
|
23
|
|
|
52
|
|
|
43
|
|
|
|
|
Other non-cash
|
|
(19)
|
|
|
(15)
|
|
|
(17)
|
|
|
Restricted cash
|
|
-
|
|
|
7
|
|
|
2
|
|
|
Change in working
capital
|
|
15
|
|
|
134
|
|
|
(164)
|
|
|
Pension fund
contribution
|
|
(32)
|
|
|
(43)
|
|
|
(73)
|
|
|
Payments for other employee
benefits liabilities
|
|
(26)
|
|
|
(25)
|
|
|
(24)
|
|
|
Other
|
|
(11)
|
|
|
(12)
|
|
|
23
|
|
|
|
|
Net cash flow provided by
operating activities
|
|
488
|
|
|
541
|
|
|
193
|
|
|
NET CASH FLOW USED FOR INVESTING
ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
Additions to plant and
equipment
|
|
(314)
|
|
|
(243)
|
|
|
(434)
|
|
|
Proceeds from the sale of assets
or affiliates
|
|
65
|
|
|
39
|
|
|
272
|
|
|
|
|
Net cash flow used for investing
activities
|
|
(249)
|
|
|
(204)
|
|
|
(162)
|
|
|
NET CASH FLOW PROVIDED BY (USED
FOR) FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
Proceeds from senior revolving
credit facility
|
|
631
|
|
|
260
|
|
|
1,135
|
|
|
Payments on senior revolving
credit facility
|
|
(619)
|
|
|
(586)
|
|
|
(955)
|
|
|
Proceeds from long-term
debt
|
|
5
|
|
|
350
|
|
|
12
|
|
|
Payments on long-term
debt
|
|
(609)
|
|
|
(15)
|
|
|
(9)
|
|
|
Investment in subsidiaries and
affiliates, net of cash acquired
|
|
(30)
|
|
|
-
|
|
|
-
|
|
|
Net decrease in short-term
debt
|
|
(10)
|
|
|
(20)
|
|
|
(16)
|
|
|
Purchases of treasury
stock
|
|
(120)
|
|
|
(3)
|
|
|
(100)
|
|
|
Other
|
|
2
|
|
|
(3)
|
|
|
-
|
|
|
|
|
Net cash flow provided by (used
for) financing activities
|
|
(750)
|
|
|
(17)
|
|
|
67
|
|
|
Effect of exchange rate changes
on cash
|
|
(1)
|
|
|
8
|
|
|
3
|
|
|
Net increase (decrease) in cash
and cash equivalents
|
|
(512)
|
|
|
328
|
|
|
101
|
|
|
Cash and cash equivalents at
beginning of period
|
|
564
|
|
|
236
|
|
|
135
|
|
|
CASH AND CASH EQUIVALENTS AT END
OF PERIOD
|
$
|
52
|
|
$
|
564
|
|
$
|
236
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DISCLOSURE OF CASH FLOW
INFORMATION
|
|
|
|
|
|
|
|
|
|
|
Cash paid during the year for
income taxes
|
$
|
16
|
|
$
|
18
|
|
$
|
33
|
|
|
Cash paid during the year for
interest
|
$
|
115
|
|
$
|
120
|
|
$
|
120
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 our Composites segment (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve
Months Ended
|
|
|
|
Dec.
31,
|
|
|
|
2010
|
|
2009
|
|
2008
|
|
|
Net sales
|
$
|
1,906
|
|
$
|
1,633
|
|
$
|
2,363
|
|
|
% change from
prior year
|
|
17%
|
|
|
-31%
|
|
|
39%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT
|
$
|
175
|
|
$
|
(33)
|
|
$
|
208
|
|
|
EBIT as a % of net
sales
|
|
9%
|
|
|
-2%
|
|
|
9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
expense
|
$
|
117
|
|
$
|
117
|
|
$
|
138
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building
Materials
The table below provides a
summary of net sales, EBIT and depreciation and amortization
expense (in millions) for the Building Materials segment and our
businesses within this segment. Changes have been made to
reflect the sale of Masonry Products. Prior period amounts have
been recast to reflect the inclusion of the Construction Services
and Building Materials Europe businesses within Insulation. Other
primarily consists of Masonry Products.
|
|
|
|
|
|
Twelve
Months Ended
|
|
|
Dec.
31,
|
|
|
|
2010
|
|
2009
|
|
2008
|
|
|
Net sales
|
|
|
|
|
|
|
|
|
|
|
Insulation
|
$
|
1,309
|
|
$
|
1,324
|
|
$
|
1,625
|
|
|
Roofing
|
|
1,847
|
|
|
1,898
|
|
|
1,863
|
|
|
Other
|
|
87
|
|
|
92
|
|
|
168
|
|
|
Total Building
Materials
|
$
|
3,243
|
|
$
|
3,314
|
|
$
|
3,656
|
|
|
% change from
prior year
|
-2%
|
|
-9%
|
|
6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT
|
|
|
|
|
|
|
|
|
|
|
Insulation
|
$
|
(102)
|
|
$
|
(96)
|
|
$
|
8
|
|
|
Roofing
|
|
405
|
|
|
530
|
|
|
185
|
|
|
Other
|
|
(22)
|
|
|
(33)
|
|
|
(18)
|
|
|
Total Building
Materials
|
$
|
281
|
|
$
|
401
|
|
$
|
175
|
|
|
EBIT as a % of net
sales
|
9%
|
|
12%
|
|
5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
expense
|
|
|
|
|
|
|
|
|
|
|
Insulation
|
$
|
117
|
|
$
|
122
|
|
$
|
121
|
|
|
Roofing
|
|
42
|
|
|
42
|
|
|
42
|
|
|
Other
|
|
9
|
|
|
10
|
|
|
10
|
|
|
Total Building
Materials
|
$
|
168
|
|
$
|
174
|
|
$
|
173
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Owens Corning