TOLEDO, Ohio, Aug. 3, 2011 /PRNewswire/ --
- Delivered Strong Performance in Roofing; Demand Boosted by
First-Half Storm Activity
- Grew EBIT in Composites by 31% Versus Second Quarter of
2010
- Took Actions in the Second Quarter to Support Second-Half
Profitability in Insulation
- Expect Adjusted EPS Growth of More Than 40% in 2011
Owens Corning (NYSE: OC) today reported that consolidated net
sales increased 5 percent to $1.5
billion in the second quarter of 2011, compared with
$1.4 billion in the second quarter of
2010.
Second-quarter 2011 adjusted earnings, based on the company’s
expected full-year effective tax rate of 28 percent, were
$77 million, or $0.61 per diluted share, compared with
$73 million, or $0.57 per diluted share, during the same period
last year. Second-quarter 2011 net earnings were $78 million, or $0.62 per diluted share, compared with net
earnings of $937 million, or
$7.33 per diluted share, in the
second quarter of 2010. Second-quarter 2010 net earnings
benefited from the one-time reversal of a non-cash, $858 million accounting valuation allowance,
which had been previously recorded against certain U.S. net
deferred tax assets. (See
Tables 1, 2 and 3 for a discussion and reconciliation of
these items.)
“Owens Corning delivered a strong second quarter,” said Chairman
and Chief Executive Officer Mike
Thaman. “The actions we took in the quarter built
significant momentum across the company and position us for a
strong second half.”
Consolidated Second-Quarter 2011 Results
- Owens Corning’s primary safety metric improved by approximately
21 percent year-to-date over the company’s full-year 2010
performance. This positions the company well for a tenth
consecutive year of safety improvement.
- Second-quarter adjusted earnings before interest and taxes
(EBIT) was $135 million in 2011
compared with $130 million in the
second quarter of 2010. In 2010, the company had certain
items that were not the result of current operations. Before
adjusting for these items, Owens Corning’s second-quarter 2010 EBIT
was $125 million. (See Table 2 for a reconciliation of these
items.)
- Gross margin as a percentage of net sales was 19 percent in the
second quarter of 2011 compared with 21 percent in 2010.
Strategic Divestitures & Acquisitions
Brazilian Reinforcements Plant Divestiture Completed
During the second quarter, Owens Corning closed on a previously
announced agreement to sell its glass fiber reinforcements plant in
Capivari, Brazil, to Chongqing
Polycomp International Corporation (CPIC). Closure of the
transaction was facilitated by a ruling from CADE, the Brazilian
anti-trust regulator, which recently provided final approval of the
agreement.
FiberTEK Acquisitions Expand Loosefill Insulation Capacity
On July 31, 2011, Owens Corning
acquired FiberTEK Insulation, LLC, and FiberTEK Insulation West,
LLC. The acquired manufacturing locations in Lakeland, Florida, and Nephi, Utah, position Owens Corning to expand
growth opportunities for its loosefill products associated with
increasing reinsulation demand and higher-efficiency building
codes. The acquisitions will offset planned capital
expenditures and are consistent with Owens Corning’s strategy to
deploy free cash flow in opportunities that strengthen the
portfolio businesses.
Other Financial Items
- At the end of the second quarter of 2011, excluding the impact
of interest rate swaps, Owens Corning had total debt, less
cash-on-hand of $1.88 billion,
compared with $1.57 billion at the
end of 2010. Total debt less cash-on-hand was higher compared
to year-end largely due to seasonal working capital needs.
- 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 2016.
- The company refinanced its $800
million senior revolving credit facility, which extends the
maturity to 2016 and lowers borrowing costs.
- During the quarter, the company repurchased 1.2 million shares
of its common stock. As of June 30,
2011, an additional 6.5 million shares remained available
for repurchase.
- Owens Corning’s federal tax net operating loss carry-forward
was $2.3 billion at the end of the
second quarter of 2011.
Outlook
The company had previously estimated that Composites would grow
EBIT in excess of 40 percent for the year. However, as a
result of a near-term correction in the Chinese wind energy market,
as well as higher than anticipated inflation costs, the company now
expects EBIT growth of about 25 percent.
The company continues to believe that the Insulation business
will be profitable in the second half of 2011. This outlook
is consistent with the company’s previous guidance and reflects
strong operating execution in a continuing weak market.
EcoTouch™ insulation has been successfully launched across
all residential markets in the U.S. and Canada.
In Roofing, the company believes full-year EBIT margins of 20
percent are achievable in 2011. Storm activity in the U.S. in
the first half of the year has created momentum in demand that is
expected to continue into the second half of 2011.
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 now estimated to be between
$90 million and $100 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.
“Given the performance of our portfolio, we have increased our
2011 estimate for EBIT to $500
million or more,” Thaman said. “This translates into
adjusted earnings per share growth of more than 40 percent versus
2010.”
Business Segment Highlights
COMPOSITES
Net Sales
Net sales for the Composites segment increased for both the
quarter and year-to-date comparison. For the quarter, net
sales were favorably impacted by translating sales denominated in
foreign currencies into U.S. dollars and higher selling prices,
which accounted for approximately two-thirds and less than
one half of the increase over the second quarter of 2010,
respectively. Partially offsetting the increase in net sales
for the second quarter of 2011 comparison to the second quarter of
2010 was the impact of the May divestiture of the Capivari,
Brazil, facility. For the
first-half comparison, the impact of translating sales denominated
in foreign currencies into U.S. dollars and higher sales prices
each accounted for approximately half of the increase in net sales.
Selling prices of key product groups within the
Reinforcements business have returned to levels seen prior to the
2008 global economic downturn. For both periods, volumes were
flat on a year-over-year basis as growth in many markets was offset
by lower demand in the Chinese wind energy market.
EBIT
EBIT grew by 31 percent and 41 percent for the quarter and
year-to-date periods, respectively. Higher selling prices and
production leverage each had about the same positive impact on EBIT
for both comparative periods. These impacts were partially
offset by inflation in material and energy costs, as well as
increases in selling, general and administrative expenses for both
the quarter and year-to-date periods.
BUILDING MATERIALS
Net Sales
Net sales in the Building Materials segment were higher in the
second quarter of 2011 and lower for the six-month period ended
June 30, 2011, as compared to the
same periods in 2010. The increase in net sales during the
second quarter was the result of increased sales volumes within the
Roofing business. Offsetting this increase were lower sales
volumes within the Insulation business and the loss of sales from
the divestiture of the U.S. Masonry Products business.
In the Roofing business, net sales increased for both the three-
and six-month periods ended June 30,
2011. Sales volume increased for both periods as a
result of greater demand due to storm activity. Higher sales
volume accounted for substantially all of the increase in net sales
for the three months ended June 30,
2011. Selling prices were at similar levels in the second
quarter of 2011 compared to the second quarter of 2010 as price
increases in the second quarter of 2011 offset price declines in
the second half of 2010 and the first quarter of 2011. The
slight increase in year-to-date sales was due to higher sales
volumes and product mix which were partially offset by lower
selling prices in the first three months of 2011.
In the Insulation business, lower sales volumes drove a decrease
in net sales of 3 percent in the 2011 periods as compared to 2010.
History shows that residential insulation demand lags U.S.
housing starts by approximately three months. Lagged U.S.
housing starts for the second quarter and year to date were down 7
percent and 5 percent, respectively, compared to the prior year,
according to data reported by the U.S. Census Bureau. Lower
sales volumes for both the quarter and year-to-date periods in 2011
were also the result of customer purchases made in the second
quarter of 2010 in advance of an announced price increase effective
in the third quarter of 2010. Partially offsetting the
decrease in sales volumes were higher selling prices year over year
as a result of pricing actions taken in the U.S. in the second half
of 2010 as well as favorable product mix.
EBIT
EBIT for the Building Materials segment decreased $15 million and $72
million for the three- and six-month periods ended
June 30, 2011, respectively.
In the Roofing business, lower unit margins drove all of the
decrease in EBIT for the quarter and year-to-date periods.
Slightly lower selling prices and significant raw material
inflation, particularly asphalt, negatively impacted unit margins
compared to the corresponding periods in 2010. Price
increases in the second quarter did not restore margins on a
year-over-year basis. Increased sales volumes and improved
manufacturing productivity partially offset the decrease in unit
margins during both the three- and six-month periods ended
June 30, 2011.
In the Insulation business, EBIT was down for both the three-
and six-month periods ended June 30,
2011, as compared to the same periods in 2010. Lower
sales volumes accounted for more than one-half of the decrease in
EBIT for the three- and six-month periods ended June 30, 2011. The remaining change during
the second quarter and first half of 2011 was due to costs
associated with the launch of EcoTouch™ and inflation that exceeded
selling price increases.
Next Earnings Announcement
Third-quarter 2011 results will be announced on Wednesday, October 26, 2011.
Second-Quarter Conference Call and Presentation
Wednesday, August 3, 2011
11 a.m. Eastern Daylight Time
All Callers
Live dial-in telephone number: U.S. 1-800-322-5044 or
International 1-617-614-4927
Passcode: 15791755
(Please dial in 10 minutes before conference call start
time.)
Live webcast: http://www.owenscorning.com/investors
Telephone replay available through August
10, 2011: U.S. 1-888-286-8010 or International
1-617-801-6888
Passcode: 90307904
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 57 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 approximately 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 or issues related to
the United States debt ceiling
debate; 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 August 3, 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
|
|
Six Months
Ended
|
|
|
|
|
June
30,
|
|
June
30,
|
|
|
|
|
|
|
2011
|
|
|
2010
|
|
|
2011
|
|
|
2010
|
|
NET SALES
|
|
$
|
1,451
|
|
$
|
1,378
|
|
$
|
2,689
|
|
$
|
2,643
|
|
COST OF SALES
|
|
|
1,172
|
|
|
1,094
|
|
|
2,208
|
|
|
2,123
|
|
|
|
Gross margin
|
|
|
279
|
|
|
284
|
|
|
481
|
|
|
520
|
|
OPERATING EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketing and administrative
expenses
|
|
|
141
|
|
|
138
|
|
|
276
|
|
|
262
|
|
|
Science and technology
expenses
|
|
|
19
|
|
|
18
|
|
|
38
|
|
|
36
|
|
|
Charges related to cost
reduction actions
|
|
|
-
|
|
|
3
|
|
|
-
|
|
|
9
|
|
|
Other (income) expenses,
net
|
|
|
(16)
|
|
|
-
|
|
|
(29)
|
|
|
5
|
|
|
|
Total operating
expenses
|
|
|
144
|
|
|
159
|
|
|
285
|
|
|
312
|
|
EARNINGS BEFORE INTEREST AND
TAXES
|
|
|
135
|
|
|
125
|
|
|
196
|
|
|
208
|
|
Interest expense, net
|
|
|
28
|
|
|
31
|
|
|
53
|
|
|
57
|
|
EARNINGS BEFORE
TAXES
|
|
|
107
|
|
|
94
|
|
|
143
|
|
|
151
|
|
Less: Income tax expense
(benefit)
|
|
|
29
|
|
|
(844)
|
|
|
40
|
|
|
(835)
|
|
Equity in net earnings of
affiliates
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
2
|
|
NET EARNINGS
|
|
|
79
|
|
|
939
|
|
|
104
|
|
|
988
|
|
Less: Net earnings attributable
to noncontrolling interests
|
|
|
1
|
|
|
2
|
|
|
2
|
|
|
3
|
|
NET EARNINGS ATTRIBUTABLE TO OWENS CORNING
|
|
$
|
78
|
|
$
|
937
|
|
$
|
102
|
|
$
|
985
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER COMMON SHARE
ATTRIBUTABLE TO
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OWENS CORNING COMMON
STOCKHOLDERS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.63
|
|
$
|
7.39
|
|
$
|
0.82
|
|
$
|
7.77
|
|
|
|
Diluted
|
|
$
|
0.62
|
|
$
|
7.33
|
|
$
|
0.81
|
|
$
|
7.72
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED-AVERAGE COMMON
SHARES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
124.0
|
|
|
126.8
|
|
|
124.0
|
|
|
126.7
|
|
|
|
Diluted
|
|
|
125.4
|
|
|
127.9
|
|
|
125.4
|
|
|
127.6
|
|
|
|
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
|
|
Six Months
Ended
|
|
|
|
|
June
30,
|
|
June
30.
|
|
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
Charges related to cost reduction actions and related items
|
$
|
-
|
|
$
|
(4)
|
|
$
|
-
|
|
$
|
(17)
|
|
Acquisition integration and
transaction costs
|
|
-
|
|
|
(1)
|
|
|
-
|
|
|
(2)
|
|
|
Total adjusting items
|
$
|
-
|
|
$
|
(5)
|
|
$
|
-
|
|
$
|
(19)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
NET EARNINGS ATTRIBUTABLE TO
OWENS CORNING
|
$
|
78
|
|
$
|
937
|
|
$
|
102
|
|
$
|
985
|
|
|
|
Less: Net earnings attributable to
noncontrolling interests
|
|
1
|
|
|
2
|
|
|
2
|
|
|
3
|
|
NET EARNINGS
|
|
79
|
|
|
939
|
|
|
104
|
|
|
988
|
|
|
Equity in net earnings of
affiliates
|
|
1
|
|
|
1
|
|
|
1
|
|
|
2
|
|
|
Income tax expense
(benefit)
|
|
29
|
|
|
(844)
|
|
|
40
|
|
|
(835)
|
|
EARNINGS BEFORE TAXES
|
|
107
|
|
|
94
|
|
|
143
|
|
|
151
|
|
|
Interest expense, net
|
|
28
|
|
|
31
|
|
|
53
|
|
|
57
|
|
EARNINGS BEFORE INTEREST AND
TAXES
|
|
135
|
|
|
125
|
|
|
196
|
|
|
208
|
|
|
Less: adjusting items from
above
|
|
-
|
|
|
(5)
|
|
|
-
|
|
|
(19)
|
|
ADJUSTED EBIT
|
$
|
135
|
|
$
|
130
|
|
$
|
196
|
|
$
|
227
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
Six
Months
Ended
|
|
|
|
|
|
|
|
|
June
30,
|
|
|
June
30,
|
|
|
|
|
|
|
|
|
2011
|
|
|
2010
|
|
|
2011
|
|
|
2010
|
|
RECONCILIATION TO ADJUSTED EARNINGS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings attributable to
Owens Corning
|
|
|
$
|
78
|
|
$
|
937
|
|
$
|
102
|
|
$
|
985
|
|
|
|
Adjustment to remove adjusting items
net of pro forma effective tax rate*
|
|
|
|
-
|
|
|
4
|
|
|
-
|
|
|
14
|
|
|
|
Adjustment to tax expense to
reflect pro forma tax rate*
|
|
|
|
(1)
|
|
|
(868)
|
|
|
-
|
|
|
(873)
|
|
ADJUSTED EARNINGS
|
|
|
$
|
77
|
|
$
|
73
|
|
$
|
102
|
|
$
|
126
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION TO ADJUSTED
DILUTED EARNINGS PER SHARE
|
|
|
ATTRIBUTABLE TO OWENS CORNING
COMMON STOCKHOLDERS
|
|
DILUTED EARNINGS PER COMMON
SHARE ATTRIBUTABLE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TO OWENS CORNING COMMON
STOCKHOLDERS
|
|
|
$
|
0.62
|
|
$
|
7.33
|
|
$
|
0.81
|
|
$
|
7.72
|
|
|
|
Adjustment to remove adjusting
items net of pro forma tax rate*
|
|
|
|
-
|
|
|
0.03
|
|
|
-
|
|
|
0.11
|
|
|
|
Adjustment to tax expense to
reflect a pro forma tax rate*
|
|
|
|
(0.01)
|
|
|
(6.79)
|
|
|
-
|
|
|
(6.84)
|
|
ADJUSTED DILUTED EARNINGS PER
SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ATTRIBUTABLE TO OWENS CORNING
COMMON STOCKHOLDERS
|
|
|
$
|
0.61
|
|
$
|
0.57
|
|
$
|
0.81
|
|
$
|
0.99
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION TO DILUTED SHARES
OUTSTANDING
|
|
Weighted-average shares
outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
used for basic earnings per
share
|
|
|
|
124.0
|
|
|
126.8
|
|
|
124.0
|
|
|
126.7
|
|
|
|
Non-vested restricted
shares
|
|
|
|
0.9
|
|
|
0.7
|
|
|
0.9
|
|
|
0.7
|
|
|
|
Options to purchase common
stock
|
|
|
|
0.5
|
|
|
0.4
|
|
|
0.5
|
|
|
0.2
|
|
Diluted shares
outstanding
|
|
|
|
125.4
|
|
|
127.9
|
|
|
125.4
|
|
|
127.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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
|
|
June
30,
|
|
Dec.
31,
|
|
|
2011
|
|
2010
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
51
|
|
$
|
52
|
|
|
Receivables, less
allowances of $18 at June 30, 2011 and $19 at Dec. 31,
2010
|
|
|
825
|
|
|
546
|
|
|
Inventories
|
|
|
688
|
|
|
620
|
|
|
Assets held for sale -
current
|
|
|
-
|
|
|
16
|
|
|
Other current
assets
|
|
|
203
|
|
|
174
|
|
|
|
Total current
assets
|
|
|
1,767
|
|
|
1,408
|
|
Property, plant and
equipment, net
|
|
|
2,867
|
|
|
2,754
|
|
Goodwill
|
|
|
1,088
|
|
|
1,088
|
|
Intangible
assets
|
|
|
1,083
|
|
|
1,090
|
|
Deferred income
taxes
|
|
|
497
|
|
|
529
|
|
Assets held for sale -
non-current
|
|
|
-
|
|
|
26
|
|
Other non-current
assets
|
|
|
271
|
|
|
263
|
|
TOTAL
ASSETS
|
|
$
|
7,573
|
|
$
|
7,158
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND EQUITY
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
$
|
954
|
|
$
|
942
|
|
|
Short-term debt
|
|
|
221
|
|
|
1
|
|
|
Long-term debt - current
portion
|
|
|
4
|
|
|
5
|
|
|
Liabilities held for sale -
current
|
|
|
-
|
|
|
7
|
|
|
|
Total current
liabilities
|
|
|
1,179
|
|
|
955
|
|
Long-term debt, net of
current portion
|
|
|
1,725
|
|
|
1,629
|
|
Pension plan
liability
|
|
|
328
|
|
|
378
|
|
Other employee benefits
liability
|
|
|
297
|
|
|
298
|
|
Deferred income
taxes
|
|
|
70
|
|
|
75
|
|
Other
liabilities
|
|
|
151
|
|
|
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
|
|
|
3,895
|
|
|
3,876
|
|
|
Accumulated
earnings
|
|
|
296
|
|
|
194
|
|
|
Accumulated other
comprehensive deficit
|
|
|
(132)
|
|
|
(194)
|
|
|
Cost of common stock in
treasury (c)
|
|
|
(277)
|
|
|
(229)
|
|
|
|
Total Owens Corning
stockholders' equity
|
|
|
3,783
|
|
|
3,648
|
|
|
Noncontrolling
interests
|
|
|
40
|
|
|
38
|
|
Total equity
|
|
|
3,823
|
|
|
3,686
|
|
TOTAL
LIABILITIES AND EQUITY
|
|
$
|
7,573
|
|
$
|
7,158
|
|
|
|
|
|
|
|
|
|
|
|
(a) 10 shares authorized; none
issued or outstanding at June 30, 2011 and Dec. 31, 2010
|
|
(b) 400 shares authorized;
133.2 issued and 122.6 outstanding at June 30, 2011; 133.2 issued
and 123.9 outstanding
|
|
|
at Dec. 31, 2010
|
|
(c) 10.6 shares at June 30, 2011
and 9.3 shares at Dec. 31, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
5
Owens
Corning and Subsidiaries
Consolidated
Statements of Cash Flows
(unaudited)
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
|
|
|
|
|
|
|
|
2011
|
|
|
2010
|
|
NET CASH FLOW PROVIDED BY (USED
FOR) OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
Net earnings
|
|
|
|
$
|
104
|
|
$
|
988
|
|
|
Adjustments to reconcile net
earnings to cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
165
|
|
|
159
|
|
|
|
|
Gain on sale of businesses and
fixed assets
|
|
|
|
|
(27)
|
|
|
(3)
|
|
|
|
|
Deferred income taxes
|
|
|
|
|
20
|
|
|
(854)
|
|
|
|
|
Provision for pension and other
employee benefits liabilities
|
|
|
|
|
17
|
|
|
14
|
|
|
|
|
Stock-based compensation
expense
|
|
|
|
|
10
|
|
|
11
|
|
|
|
|
Other non-cash
|
|
|
|
|
(17)
|
|
|
(2)
|
|
|
Change in working
capital
|
|
|
|
|
(307)
|
|
|
(172)
|
|
|
Pension fund
contribution
|
|
|
|
|
(90)
|
|
|
(12)
|
|
|
Payments for other employee
benefits liabilities
|
|
|
|
|
(12)
|
|
|
(13)
|
|
|
Other
|
|
|
|
|
3
|
|
|
18
|
|
|
|
|
Net cash flow provided by (used
for) operating activities
|
|
|
|
|
(134)
|
|
|
134
|
|
NET CASH FLOW USED FOR INVESTING
ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
Additions to plant and
equipment
|
|
|
|
|
(210)
|
|
|
(121)
|
|
|
Proceeds from the sale of assets
or affiliates
|
|
|
|
|
75
|
|
|
14
|
|
|
|
|
Net cash flow used for investing
activities
|
|
|
|
|
(135)
|
|
|
(107)
|
|
NET CASH FLOW PROVIDED BY (USED
FOR) FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
Proceeds from senior revolving
credit facility
|
|
|
|
|
432
|
|
|
250
|
|
|
Payments on senior revolving
credit facility
|
|
|
|
|
(342)
|
|
|
(193)
|
|
|
Proceeds from long-term
debt
|
|
|
|
|
6
|
|
|
1
|
|
|
Payments on long-term
debt
|
|
|
|
|
(9)
|
|
|
(604)
|
|
|
Net increase (decrease) in
short-term debt
|
|
|
|
|
219
|
|
|
(6)
|
|
|
Purchases of treasury
stock
|
|
|
|
|
(53)
|
|
|
(2)
|
|
|
Other
|
|
|
|
|
12
|
|
|
-
|
|
|
|
|
Net cash flow provided by (used
for) financing activities
|
|
|
|
|
265
|
|
|
(554)
|
|
Effect of exchange rate changes
on cash
|
|
|
|
|
3
|
|
|
(7)
|
|
Net decrease in cash and cash
equivalents
|
|
|
|
|
(1)
|
|
|
(534)
|
|
Cash and cash equivalents at
beginning of period
|
|
|
|
|
52
|
|
|
564
|
|
CASH AND CASH EQUIVALENTS AT END
OF PERIOD
|
|
|
|
$
|
51
|
|
$
|
30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
Net sales
|
$
|
529
|
|
$
|
491
|
|
$
|
1,021
|
|
$
|
954
|
|
|
% change from
prior year
|
|
8%
|
|
|
26%
|
|
|
7%
|
|
|
30%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT
|
$
|
55
|
|
$
|
42
|
|
$
|
103
|
|
$
|
73
|
|
|
EBIT as a % of net
sales
|
|
10%
|
|
|
9%
|
|
|
10%
|
|
|
8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
expense
|
$
|
32
|
|
$
|
31
|
|
$
|
66
|
|
$
|
58
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building
Materials
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The table below provides a
summary of net sales, EBIT and depreciation and amortization
expense for the Building Materials segment and the businesses
within this segment (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June
30,
|
|
June
30,
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
Net sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insulation
|
$
|
326
|
|
$
|
336
|
|
$
|
616
|
|
$
|
638
|
|
|
Roofing
|
|
645
|
|
|
573
|
|
|
1,141
|
|
|
1,103
|
|
|
Other
|
|
-
|
|
|
28
|
|
|
-
|
|
|
43
|
|
Total Building
Materials
|
$
|
971
|
|
$
|
937
|
|
$
|
1,757
|
|
$
|
1,784
|
|
|
% change from
prior year
|
4%
|
|
8%
|
|
-2%
|
|
9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insulation
|
$
|
(38)
|
|
$
|
(26)
|
|
$
|
(85)
|
|
$
|
(62)
|
|
|
Roofing
|
|
141
|
|
|
149
|
|
|
218
|
|
|
277
|
|
|
Other
|
|
-
|
|
|
(5)
|
|
|
-
|
|
|
(10)
|
|
Total Building
Materials
|
$
|
103
|
|
$
|
118
|
|
$
|
133
|
|
$
|
205
|
|
|
EBIT as a % of net
sales
|
11%
|
|
13%
|
|
8%
|
|
11%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insulation
|
$
|
30
|
|
$
|
30
|
|
$
|
59
|
|
$
|
60
|
|
|
Roofing
|
|
11
|
|
|
11
|
|
|
21
|
|
|
21
|
|
Total Building
Materials
|
$
|
41
|
|
$
|
41
|
|
$
|
80
|
|
$
|
81
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
7
Owens
Corning and Subsidiaries
Corporate,
Other and Eliminations
(unaudited)
|
|
|
|
Corporate,
Other and Eliminations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The table below provides a
summary of EBIT and depreciation and amortization expense for the
Corporate, Other and Eliminations category (in
millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
June
30,
|
|
June
30,
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
Charges related to cost
reduction actions and related items
|
$
|
(17)
|
|
$
|
(4)
|
|
$
|
(17)
|
|
$
|
(17)
|
|
Acquisition, integration,
transaction and other costs
|
|
-
|
|
|
(1)
|
|
|
-
|
|
|
(2)
|
|
Gain on sale of Capivari, Brazil
facility
|
|
16
|
|
|
-
|
|
|
16
|
|
|
-
|
|
General corporate expense and
other
|
|
(22)
|
|
|
(30)
|
|
|
(39)
|
|
|
(51)
|
|
EBIT
|
$
|
(23)
|
|
$
|
(35)
|
|
$
|
(40)
|
|
$
|
(70)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
$
|
12
|
|
$
|
7
|
|
$
|
19
|
|
$
|
20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Owens Corning