TOLEDO, Ohio, April 27, 2011 /PRNewswire/ --
- Grew EBIT in Composites by 55% Versus the First Quarter of
2010
- Benefitted from a Recovery in Roofing Volumes that Supports
Full-Year Outlook
- Challenged by First-Quarter Insulation Market Conditions;
Taking Actions to Support Profitable Second Half in Insulation
- Project Adjusted EPS Growth of More Than 30% in 2011
Owens Corning (NYSE: OC) today reported consolidated net sales
decreased 2 percent to $1.24 billion
in the first quarter of 2011, compared with $1.27 billion in the first quarter of 2010.
First-quarter 2011 net earnings were $24
million, or $0.19 per diluted
share, compared with net earnings of $48
million, or $0.38 per diluted
share, in the first quarter of 2010. First-quarter adjusted
earnings, when adjusted to the company's expected full-year
effective tax rate of 28 percent, were $25
million, or $0.20 per diluted
share, compared with $53 million, or
$0.42 per diluted share, in the first
quarter of 2010. (See Tables
1, 2 and 3 for a discussion and reconciliation of these items.)
"Owens Corning delivered profit in line with our expectations
for the first quarter driven by continued strong performance in the
Composites and Roofing businesses," said Chairman and Chief
Executive Officer Mike Thaman.
"We remain confident in our guidance of $475
million in adjusted EBIT for 2011.
"During the quarter we made operating investments to expand our
Composites capacity and convert Insulation facilities to produce
our new EcoTouch™ insulation," Thaman added. "We expect that
these investments -- combined with improving economic conditions
and our recent pricing actions -- will improve profitability
throughout the balance of the year."
Consolidated First-Quarter 2011 Results
- Owens Corning's primary safety metric improved by approximately
30 percent over the company's full-year 2010 performance.
- First-quarter earnings before interest and taxes (EBIT) was
$61 million in 2011 compared with
$83 million in the first quarter of
2010. In 2010, the company had certain items that management
believes were not the result of current operations. After
adjusting for these items, Owens Corning's first-quarter 2010
adjusted EBIT was $97 million.
(See Table 2 for a reconciliation of these items.)
- Gross margin as a percentage of net sales was 16 percent in the
first quarter of 2011 compared with 19 percent in 2010.
Reinforcements Plant Divestiture
During the first quarter, Owens Corning reached a definitive
agreement to sell its glass fiber reinforcements plant in Capivari,
Brazil. The transaction,
which is expected to close during the second quarter of 2011, is
subject to regulatory approval and other customary conditions.
Outlook
Owens Corning today reaffirmed that 2011 adjusted EBIT is
expected to grow to $475 million.
This translates to adjusted earnings per share (EPS) growth
of more than 30 percent. The company expects to benefit from
revenue and margin growth while continuing to maintain discipline
in managing headcount and operating costs.
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 China and other
investments in facilities that took place in the quarter are
expected to begin contributing to profitability in the second
quarter of 2011. In addition, the company expects to complete
the expansion of its Russian facility by the end of 2011.
In the Building Materials segment, continued weakness in the
U.S. housing industry is expected to impact construction-related
demand throughout 2011. The company expects U.S. new
residential construction to improve modestly in the second half of
2011.
While the roofing market continues to operate well below its
potential, the company believes full-year EBIT margins of 20
percent are achievable for this business in 2011.
The Insulation business is expected to benefit from improving
market conditions and volume as the year progresses. The
company expects the EcoTouch™ plant conversions to be substantially
complete in the second quarter and to return this business to
profitability in the second half of the year.
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.
Other Financial Items
- At the end of the first quarter of 2011, excluding the impact
of interest rate swaps, Owens Corning had total debt, less
cash-on-hand of $1.86 billion,
compared with $1.57 billion at the
end of 2010. Total debt less cash-on-hand was higher compared
to year end due to seasonal working capital needs and contributions
to the company's pension plans.
- The company continues to focus on generating cash and maintains
a strong balance sheet with ample liquidity. Owens Corning
has no significant long-term 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 the
first quarter of 2011.
- The company closed on a $250
million accounts receivable securitization facility at the
end of the first quarter which brings additional liquidity,
diversifies funding sources and reduces borrowing costs.
Business Segment Highlights
Composites
NET SALES
Net sales increased during the first quarter of 2011 compared to
the same period in 2010. More than half of the increase in
net sales was the result of higher selling prices during the
quarter. The upward trend in selling prices that began in the
fourth quarter of 2009 continued during the first quarter of 2011.
As a result, selling prices of key product groups within the
Reinforcements business have returned to levels seen prior to the
2008 global economic downturn. Favorable currency translation
and favorable product mix each accounted for about one-third of the
increase in 2011 sales versus 2010. These impacts were
partially offset by lower sales volumes, primarily in Asia Pacific, in the first quarter of 2011 as
compared to the same period in 2010.
EBIT
EBIT for the first quarter of 2011 increased 55 percent compared
with the same period in 2010. Higher selling prices and
production leverage each had about the same positive impact on
EBIT. These items were partially offset by material and
energy inflation costs as well as increases in selling, general and
administrative expenses.
Building Materials
NET SALES
Net sales in the Building Materials segment were lower in the
first quarter of 2011 compared with the same period in 2010.
Most of this decrease was related to lower sales volumes
within the Roofing business. Sales were also negatively
impacted by the fourth-quarter 2010 divestiture of the North
American Masonry Products business and lower sales in the
Insulation business.
In the Roofing business, lower shingle volumes accounted for
approximately three-fourths of the decrease in net sales during the
quarter. First-quarter 2011 shingle volumes were lower than
the first quarter of 2010 because of heavier customer restocking
activity in the first quarter of 2010. The remaining decrease
in net sales between the first quarter of 2011 and the first
quarter of 2010 was due to lower selling prices, which more than
offset favorable product mix.
In the Insulation business, net sales in the first quarter of
2011 were lower than the same period in 2010 due to lower sales
volumes that were partially offset by higher selling prices.
Lower sales volumes continue to persist given the current
state of the U.S. housing market. Pricing actions taken in
the United States in the second
half of 2010 resulted in higher selling prices in the first quarter
2011 as compared to the first quarter of 2010.
EBIT
EBIT for the Building Materials segment decreased in the first
quarter of 2011 compared with the same period in 2010 primarily
because of lower EBIT in the Roofing business.
In the Roofing business, approximately three-fourths of the
decrease in EBIT for the first quarter of 2011 compared to the
first quarter of 2010 was due to lower unit margins. Lower
selling prices and raw material inflation including asphalt,
negatively impacted first-quarter 2011 unit margins compared to the
first quarter of 2010. The remaining decrease in EBIT was due
to lower shingle sales volumes as described above.
In the Insulation business, EBIT was down for the first quarter
of 2011 compared with the same period in 2010. Increases in
United States selling prices were
more than offset by the impact of lower sales volumes and costs
associated with the launch of EcoTouch™ during the first
quarter.
Next Earnings Announcement
Second-quarter 2011 results will be announced on Wednesday, August 3, 2011.
Conference Call and Presentation
Wednesday, April 27, 2011
11 a.m. Eastern
All Callers
Live dial-in telephone number: U.S. 1-866-730-5770 or
International 1-857-350-1594
Passcode: 70753258
(Please dial in 10 minutes before conference call start
time.)
Live webcast: http://www.owenscorning.com/investors
Telephone replay available through May 4,
2011: U.S. 1-888-286-8010 or International
1-617-801-6888
Passcode: 15410786
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 April 27, 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
(unaudited)
(in
millions, except per share amounts)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
March
31,
|
|
|
|
|
|
|
|
|
|
|
|
|
2011
|
|
|
2010
|
|
NET SALES
|
|
|
|
|
|
|
|
$
|
1,238
|
|
$
|
1,265
|
|
COST OF SALES
|
|
|
|
|
|
|
|
|
1,036
|
|
|
1,029
|
|
|
|
Gross margin
|
|
|
|
|
|
|
|
|
202
|
|
|
236
|
|
OPERATING EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketing and administrative
expenses
|
|
|
|
|
|
|
|
|
135
|
|
|
124
|
|
|
Science and technology
expenses
|
|
|
|
|
|
|
|
|
19
|
|
|
18
|
|
|
Charges related to cost
reduction actions
|
|
|
|
|
|
|
|
|
-
|
|
|
6
|
|
|
Other (income)
expenses
|
|
|
|
|
|
|
|
|
(13)
|
|
|
5
|
|
|
|
Total operating
expenses
|
|
|
|
|
|
|
|
|
141
|
|
|
153
|
|
EARNINGS BEFORE INTEREST AND
TAXES
|
|
|
|
|
|
|
|
|
61
|
|
|
83
|
|
Interest expense, net
|
|
|
|
|
|
|
|
|
25
|
|
|
26
|
|
EARNINGS BEFORE
TAXES
|
|
|
|
|
|
|
|
|
36
|
|
|
57
|
|
Less: Income tax
expense
|
|
|
|
|
|
|
|
|
11
|
|
|
9
|
|
Equity in net earnings of
affiliates
|
|
|
|
|
|
|
|
|
-
|
|
|
1
|
|
NET EARNINGS
|
|
|
|
|
|
|
|
|
25
|
|
|
49
|
|
Less: Net earnings attributable
to noncontrolling interests
|
|
|
|
|
|
|
|
|
1
|
|
|
1
|
|
NET EARNINGS ATTRIBUTABLE TO
OWENS CORNING
|
|
|
|
|
|
|
|
$
|
24
|
|
$
|
48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER COMMON SHARE
ATTRIBUTABLE TO
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OWENS CORNING COMMON
STOCKHOLDERS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
$
|
0.19
|
|
$
|
0.38
|
|
|
|
Diluted
|
|
|
|
|
|
|
|
$
|
0.19
|
|
$
|
0.38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED-AVERAGE COMMON
SHARES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
123.8
|
|
|
126.5
|
|
|
|
Diluted
|
|
|
|
|
|
|
|
|
125.3
|
|
|
127.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
The adjusted financial measure resulting from these
adjustments is used internally by Owens Corning for various
purposes, including reporting results of operations to the Board of
Directors, analysis of performance, and related employee
compensation measures. Although management believes that
these adjustments result in a measure that provides it a useful
representation of its operational performance, the adjusted measure
should not be considered in isolation or as a substitute for net
earnings attributable to Owens Corning as prepared in accordance
with accounting principles generally accepted in the United
States.
|
|
Adjusting items are shown
in the table below (in millions):
|
|
|
|
|
Three Months
Ended
|
|
|
|
March
31,
|
|
|
|
2011
|
|
2010
|
|
Charges related to cost
reduction actions and related items
|
|
$
|
-
|
|
$
|
(13)
|
|
Acquisition integration and
transaction costs
|
|
|
-
|
|
|
(1)
|
|
|
Total adjusting items
|
|
$
|
-
|
|
$
|
(14)
|
|
|
|
|
|
|
|
|
|
The reconciliation from
net earnings attributable to Owens Corning to Adjusted EBIT is
shown in the table below (in millions):
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2011
|
|
2010
|
|
NET EARNINGS ATTRIBUTABLE TO
OWENS CORNING
|
$
|
24
|
|
$
|
48
|
|
|
Less: Net
earnings attributable to noncontrolling interests
|
|
1
|
|
|
1
|
|
NET EARNINGS
|
|
25
|
|
|
49
|
|
|
Equity in net earnings of
affiliates
|
|
-
|
|
|
1
|
|
|
Income tax expense
|
|
11
|
|
|
9
|
|
EARNINGS BEFORE TAXES
|
|
36
|
|
|
57
|
|
|
Interest expense, net
|
|
25
|
|
|
26
|
|
EARNINGS BEFORE INTEREST AND
TAXES
|
|
61
|
|
|
83
|
|
|
Less: adjusting items from
above
|
|
-
|
|
|
(14)
|
|
ADJUSTED EBIT
|
$
|
61
|
|
$
|
97
|
|
|
|
|
|
|
|
|
|
|
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.
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 and a
reconciliation from diluted earnings per share to adjusted diluted
earnings per share are shown in the tables below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
|
|
|
|
|
|
March
31,
|
|
|
|
|
|
|
|
|
2011
|
|
|
2010
|
|
RECONCILIATION TO ADJUSTED
EARNINGS
|
|
|
|
|
|
|
|
|
Net earnings attributable to
Owens Corning
|
|
|
$
|
24
|
|
$
|
48
|
|
|
|
Adjustment to remove adjusting
items net of pro forma effective tax rate*
|
|
|
|
-
|
|
|
11
|
|
|
|
Adjustment to tax expense to
reflect pro forma tax rate*
|
|
|
|
1
|
|
|
(6)
|
|
ADJUSTED EARNINGS
|
|
|
$
|
25
|
|
$
|
53
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION TO ADJUSTED
DILUTED EARNINGS PER SHARE
|
|
|
ATTRIBUTABLE TO OWENS CORNING
COMMON STOCKHOLDERS
|
|
DILUTED EARNINGS PER COMMON
SHARE ATTRIBUTABLE
|
|
|
|
|
|
|
|
|
|
TO OWENS CORNING COMMON
STOCKHOLDERS
|
|
|
$
|
0.19
|
|
$
|
0.38
|
|
|
|
Adjustment to remove adjusting
items net of pro forma tax rate*
|
|
|
|
-
|
|
|
0.09
|
|
|
|
Adjustment to tax expense to
reflect a pro forma tax rate*
|
|
|
|
0.01
|
|
|
(0.05)
|
|
ADJUSTED DILUTED EARNINGS PER
SHARE
|
|
|
|
|
|
|
|
|
|
ATTRIBUTABLE TO OWENS CORNING
COMMON STOCKHOLDERS
|
|
|
$
|
0.20
|
|
$
|
0.42
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION TO DILUTED SHARES
OUTSTANDING
|
|
Weighted-average shares
outstanding
|
|
|
|
|
|
|
|
|
|
used for basic earnings per
share
|
|
|
|
123.8
|
|
|
126.5
|
|
|
|
Non-vested restricted
shares
|
|
|
|
1.0
|
|
|
0.7
|
|
|
|
Options to purchase common
stock
|
|
|
|
0.5
|
|
|
0.3
|
|
Diluted shares
outstanding
|
|
|
|
125.3
|
|
|
127.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Pro forma tax rates used were
28% in 2011 as this is the expected full-year effective tax rate,
and, 25% in 2010 as this was the expected long-term effective tax
rate of the Company in 2010 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
|
|
March
31,
|
|
Dec.
31,
|
|
|
|
2011
|
|
2010
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
61
|
|
$
|
52
|
|
|
Receivables, less
allowances of $19 at March 31, 2011 and Dec. 31, 2010
|
|
|
750
|
|
|
546
|
|
|
Inventories
|
|
|
665
|
|
|
620
|
|
|
Assets held for sale -
current
|
|
|
18
|
|
|
16
|
|
|
Other current
assets
|
|
|
195
|
|
|
174
|
|
|
|
Total current
assets
|
|
|
1,689
|
|
|
1,408
|
|
Property, plant and
equipment, net
|
|
|
2,807
|
|
|
2,754
|
|
Goodwill
|
|
|
1,088
|
|
|
1,088
|
|
Intangible
assets
|
|
|
1,091
|
|
|
1,090
|
|
Deferred income
taxes
|
|
|
524
|
|
|
529
|
|
Assets held for sale -
non-current
|
|
|
26
|
|
|
26
|
|
Other non-current
assets
|
|
|
259
|
|
|
263
|
|
TOTAL
ASSETS
|
|
$
|
7,484
|
|
$
|
7,158
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND EQUITY
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
$
|
981
|
|
$
|
942
|
|
|
Short-term debt
|
|
|
5
|
|
|
1
|
|
|
Long-term debt - current
portion
|
|
|
5
|
|
|
5
|
|
|
Liabilities held for sale -
current
|
|
|
7
|
|
|
7
|
|
|
|
Total current
liabilities
|
|
|
998
|
|
|
955
|
|
Long-term debt, net of
current portion
|
|
|
1,919
|
|
|
1,629
|
|
Pension plan
liability
|
|
|
308
|
|
|
378
|
|
Other employee benefits
liability
|
|
|
297
|
|
|
298
|
|
Deferred income
taxes
|
|
|
72
|
|
|
75
|
|
Other
liabilities
|
|
|
133
|
|
|
137
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
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
|
|
|
3,887
|
|
|
3,876
|
|
|
Accumulated
earnings
|
|
|
218
|
|
|
194
|
|
|
Accumulated other
comprehensive deficit
|
|
|
(153)
|
|
|
(194)
|
|
|
Cost of common stock in
treasury (c)
|
|
|
(234)
|
|
|
(229)
|
|
|
|
Total Owens Corning
stockholders' equity
|
|
|
3,719
|
|
|
3,648
|
|
|
Noncontrolling
interests
|
|
|
38
|
|
|
38
|
|
Total equity
|
|
|
3,757
|
|
|
3,686
|
|
TOTAL
LIABILITIES AND EQUITY
|
|
$
|
7,484
|
|
$
|
7,158
|
|
|
|
|
|
|
|
|
|
|
|
(a) 10 shares authorized; none
issued or outstanding at March 31, 2011 and Dec. 31,
2010
|
|
(b) 400 shares authorized;
134.3 issued and 124.8 outstanding at March 31, 2011; 133.2 issued
and 124.1 outstanding
|
|
|
at Dec. 31, 2010
|
|
(c) 9.5 shares at March 31, 2011
and 9.1 shares at Dec. 31, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
5
Owens
Corning and Subsidiaries
Consolidated
Statements of Cash Flows
(unaudited)
(in
millions)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
|
|
|
|
|
|
|
|
2011
|
|
|
2010
|
|
NET CASH FLOW USED FOR OPERATING
ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
Net earnings
|
|
|
|
$
|
25
|
|
$
|
49
|
|
|
Adjustments to reconcile net
earnings to cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
80
|
|
|
80
|
|
|
|
|
Gain on sale of businesses and
fixed assets
|
|
|
|
|
(6)
|
|
|
(2)
|
|
|
|
|
Deferred income taxes
|
|
|
|
|
(4)
|
|
|
5
|
|
|
|
|
Provision for pension and other
employee benefits liabilities
|
|
|
|
|
8
|
|
|
7
|
|
|
|
|
Stock-based compensation
expense
|
|
|
|
|
5
|
|
|
7
|
|
|
|
|
Other non-cash
|
|
|
|
|
(7)
|
|
|
(2)
|
|
|
Change in working
capital
|
|
|
|
|
(239)
|
|
|
(158)
|
|
|
Pension fund
contribution
|
|
|
|
|
(78)
|
|
|
(8)
|
|
|
Payments for other employee
benefits liabilities
|
|
|
|
|
(7)
|
|
|
(6)
|
|
|
Other
|
|
|
|
|
10
|
|
|
1
|
|
|
|
|
Net cash flow used for operating
activities
|
|
|
|
|
(213)
|
|
|
(27)
|
|
NET CASH FLOW USED FOR INVESTING
ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
Additions to plant and
equipment
|
|
|
|
|
(91)
|
|
|
(63)
|
|
|
Proceeds from the sale of assets
or affiliates
|
|
|
|
|
12
|
|
|
5
|
|
|
|
|
Net cash flow used for investing
activities
|
|
|
|
|
(79)
|
|
|
(58)
|
|
NET CASH FLOW PROVIDED BY (USED
FOR) FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
Proceeds from senior revolving
credit facility
|
|
|
|
|
432
|
|
|
-
|
|
|
Payments on senior revolving
credit facility
|
|
|
|
|
(133)
|
|
|
-
|
|
|
Payments on long-term
debt
|
|
|
|
|
(1)
|
|
|
(3)
|
|
|
Net increase (decrease) in
short-term debt
|
|
|
|
|
4
|
|
|
(9)
|
|
|
Purchases of treasury
stock
|
|
|
|
|
(10)
|
|
|
(2)
|
|
|
Other
|
|
|
|
|
8
|
|
|
-
|
|
|
|
|
Net cash flow provided by (used
for) financing activities
|
|
|
|
|
300
|
|
|
(14)
|
|
Effect of exchange rate changes
on cash
|
|
|
|
|
1
|
|
|
(2)
|
|
Net increase (decrease) in cash
and cash equivalents
|
|
|
|
|
9
|
|
|
(101)
|
|
Cash and cash equivalents at
beginning of period
|
|
|
|
|
52
|
|
|
564
|
|
CASH AND CASH EQUIVALENTS AT END
OF PERIOD
|
|
|
|
$
|
61
|
|
$
|
463
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
6
Owens
Corning and Subsidiaries
Segment and
Business Information
(unaudited)
|
|
Composites
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The table below provides a
summary of net sales, EBIT and depreciation and amortization
expense for the Composites segment (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
March
31,
|
|
|
|
|
|
|
|
2011
|
|
2010
|
|
Net sales
|
|
|
|
|
|
|
$
|
492
|
|
$
|
463
|
|
|
% change from
prior year
|
|
|
|
|
|
|
|
6%
|
|
|
34%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT
|
|
|
|
|
|
|
$
|
48
|
|
$
|
31
|
|
|
EBIT as a % of net
sales
|
|
|
|
|
|
|
|
10%
|
|
|
7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
expense
|
|
|
|
|
|
|
$
|
34
|
|
$
|
27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
Prior period amounts have been recast to reflect the inclusion of
the Construction Services and Building Materials Europe businesses
within Insulation. Other consists of Masonry Products.
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
March
31,
|
|
|
|
|
|
|
|
2011
|
|
2010
|
|
Net sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insulation
|
|
|
|
|
|
|
$
|
290
|
|
$
|
302
|
|
|
Roofing
|
|
|
|
|
|
|
|
496
|
|
|
530
|
|
|
Other
|
|
|
|
|
|
|
|
-
|
|
|
15
|
|
Total Building
Materials
|
|
|
|
|
|
|
$
|
786
|
|
$
|
847
|
|
|
% change from
prior year
|
|
|
|
|
-7%
|
|
11%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insulation
|
|
|
|
|
|
|
$
|
(47)
|
|
$
|
(36)
|
|
|
Roofing
|
|
|
|
|
|
|
|
77
|
|
|
128
|
|
|
Other
|
|
|
|
|
|
|
|
-
|
|
|
(5)
|
|
Total Building
Materials
|
|
|
|
|
|
|
$
|
30
|
|
$
|
87
|
|
|
EBIT as a % of net
sales
|
|
|
|
|
4%
|
|
10%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insulation
|
|
|
|
|
|
|
$
|
29
|
|
$
|
30
|
|
|
Roofing
|
|
|
|
|
|
|
|
10
|
|
|
10
|
|
Total Building
Materials
|
|
|
|
|
|
|
$
|
39
|
|
$
|
40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Owens Corning