TOLEDO, Ohio, Feb. 15, 2012 /PRNewswire/ --
- Achieved Full-Year EBIT and Revenue Improvement in All
Businesses versus 2010
- Delivered Strong Improvement in Insulation, Break-Even Q4
2011
- Acting to Improve Composites’ Competitive Cost Position and
Address Current Oversupply
- Expect 2012 Adjusted EBIT Growth and Strong Cash Flow
Performance
Owens Corning (NYSE: OC) today reported consolidated net sales
of $5.3 billion, a 7-percent increase
from net sales of $5.0 billion in
2010.
Full-year adjusted earnings were $276
million, or $2.23 per diluted
share, compared with $199 million, or
$1.57 per diluted share, in 2010.
Net earnings were $276 million,
or $2.23 per diluted share, compared
with net earnings of $933 million, or
$7.37 per diluted share, in 2010.
Fourth-quarter 2011 adjusted earnings were $48 million, or $0.40 per diluted share, compared with
$29 million, or $0.23 per diluted share, one year ago. Net
earnings in the fourth quarter of 2011 totaled $50 million, or $0.41 per diluted share, compared with a net loss
of $110 million, or $0.89 per diluted share, in 2010. See
Tables 1, 2 and 6 for a discussion and reconciliation of these
items.
“Owens Corning delivered another outstanding year in 2011.
We achieved growth in revenue and EBIT in all of our
businesses amid challenging market conditions,” said Chairman and
Chief Executive Officer Mike Thaman.
“These results reflect excellent execution by our portfolio
of market-leading businesses.
“Looking forward to 2012, we anticipate improved housing starts
in the U.S. and modest growth in the global economy,” Thaman added.
“Strong performance from our Building Materials segment will
more than offset the impact of near-term market challenges in our
Composites segment resulting in growth in adjusted EBIT and strong
cash performance for Owens Corning.”
Consolidated Fourth-Quarter and 2011 Results
- Owens Corning’s primary safety metric improved by 27 percent
over the company’s full-year 2010 performance, marking a tenth
consecutive year of safety improvement.
- Full-year adjusted earnings before interest and taxes (adjusted
EBIT) were $461 million in 2011,
compared with $381 million in 2010.
Full-year EBIT in 2011 was $461
million, compared with $206
million in 2010 (see Table 2).
- Adjusted EBIT in the fourth quarter of 2011 was $88 million, compared with $64 million in 2010. EBIT for the fourth
quarter was $88 million, compared
with an EBIT loss of $71 million
during the same period in 2010 (see Table 2).
- Gross margin as a percentage of net sales was 19 percent in
2011 and in 2010.
Outlook
Owens Corning expects adjusted EBIT growth in 2012 based on an
anticipated improvement in U.S. housing starts and modest global
economic growth.
Despite weakness in the European glass fiber reinforcements
market, the company believes that global reinforcements demand will
continue to grow in 2012.
The company is taking actions in its Composites segment to
balance supply, to enable its assets in Europe to operate at a sustainable competitive
cost position, and to leverage low-cost assets by year-end
2012. In conjunction with these actions, the company
anticipates incurring approximately $130
million in charges in 2012 through early 2013, of which
approximately half represent cash expenditures.
In the Building Materials segment, Owens Corning expects that
the factors that have sustained Roofing margins in recent years
will continue to drive profitability. The company believes
Insulation will significantly narrow losses in 2012.
Cash taxes are expected to be about $30
million in 2012. 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 2012 is expected to be about
25 percent on adjusted earnings.
The company expects that general corporate expenses in 2012 will
be between $110 million and $120
million. General corporate expenses include corporate
staff and other activities that support the operations.
Expenses will be higher in 2012 primarily due to increased
pension expense and higher year-over-year incentive compensation
costs.
Depreciation and amortization expenses are expected to be about
$320 million in 2012.
Capital expenditures in 2012 are expected to be about
$350 million.
Other Financial Items
- The company maintains a strong balance sheet with ample
liquidity. Owens Corning refinanced more than $1 billion in credit facilities in 2011 to extend
maturities and reduce borrowing costs.
- The company repurchased 4.0 million shares of common stock in
2011. An additional 3.7 million shares remained authorized
for repurchase at the end of the year.
- Owens Corning’s federal tax net operating loss carry-forward
was $2.3 billion at the end of
2011.
- At the end of 2011, excluding the impact of interest rate
swaps, Owens Corning had total debt, less cash-on-hand of
$1.87 billion, compared with
$1.57 billion at the end of
2010.
Next Earnings Announcement
First-quarter 2012 results will be announced on Wednesday, April 25, 2012.
Conference Call and
Presentation
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Wednesday, Feb. 15,
2012
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11 a.m. Eastern
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All Callers
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Live dial-in telephone number:
U.S. 1-800-638-5439 or International 1-617-614-3945
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Passcode:
91544208
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(Please dial in 10 minutes
before conference call start time.)
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Live webcast:
http://www.owenscorning.com/investors
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Telephone replay available
through Feb. 22, 2012: U.S. 1-888-286-8010 or International
1-617-801-6888
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Passcode: 27235585
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Replay of webcast also available
at: http://www.owenscorning.com/investors
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Presentation
|
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To view the slide presentation
during the conference call, please log on to the live webcast
at www.owenscorning.com/investors
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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 $5.3 billion
in 2011 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 15, 2012, 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
|
|
Twelve
Months Ended
|
|
|
|
|
Dec.
31,
|
|
Dec.
31,
|
|
|
|
|
|
|
2011
|
|
|
2010
|
|
|
2011
|
|
|
2010
|
|
NET SALES
|
|
$
|
1,196
|
|
$
|
1,168
|
|
$
|
5,335
|
|
$
|
4,997
|
|
COST OF SALES
|
|
|
966
|
|
|
968
|
|
|
4,307
|
|
|
4,041
|
|
|
|
Gross margin
|
|
|
230
|
|
|
200
|
|
|
1,028
|
|
|
956
|
|
OPERATING EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketing and administrative
expenses
|
|
|
130
|
|
|
131
|
|
|
525
|
|
|
516
|
|
|
Science and technology
expenses
|
|
|
19
|
|
|
21
|
|
|
77
|
|
|
76
|
|
|
Charges related to cost
reduction actions
|
|
|
-
|
|
|
5
|
|
|
-
|
|
|
29
|
|
|
Other income
(expense)
|
|
|
(7)
|
|
|
114
|
|
|
(35)
|
|
|
129
|
|
|
|
Total operating
expenses
|
|
|
142
|
|
|
271
|
|
|
567
|
|
|
750
|
|
EARNINGS (LOSS) BEFORE INTEREST
AND TAXES
|
|
|
88
|
|
|
(71)
|
|
|
461
|
|
|
206
|
|
Interest expense, net
|
|
|
27
|
|
|
25
|
|
|
108
|
|
|
110
|
|
EARNINGS (LOSS) BEFORE
TAXES
|
|
|
61
|
|
|
(96)
|
|
|
353
|
|
|
96
|
|
Income tax expense
(benefit)
|
|
|
11
|
|
|
14
|
|
|
74
|
|
|
(840)
|
|
Equity in net earnings of
affiliates
|
|
|
1
|
|
|
1
|
|
|
2
|
|
|
4
|
|
NET EARNINGS
(LOSS)
|
|
|
51
|
|
|
(109)
|
|
|
281
|
|
|
940
|
|
Less: Net earnings attributable
to noncontrolling interests
|
|
|
1
|
|
|
1
|
|
|
5
|
|
|
7
|
|
NET EARNINGS (LOSS) ATTRIBUTABLE
TO OWENS CORNING
|
|
$
|
50
|
|
$
|
(110)
|
|
$
|
276
|
|
$
|
933
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC EARNINGS (LOSS) PER COMMON
SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
ATTRIBUTABLE TO OWENS CORNING
COMMON STOCKHOLDERS
|
|
$
|
0.41
|
|
$
|
(0.89)
|
|
$
|
2.25
|
|
$
|
7.43
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS (LOSS) PER
COMMON SHARE
|
|
|
|
|
|
|
|
|
|
|
|
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ATTRIBUTABLE TO OWENS CORNING
COMMON
|
|
|
|
|
|
|
|
|
|
|
|
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STOCKHOLDERS
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|
$
|
0.41
|
|
$
|
(0.89)
|
|
$
|
2.23
|
|
$
|
7.37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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WEIGHTED AVERAGE COMMON
SHARES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
120.5
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|
|
123.7
|
|
|
122.5
|
|
|
125.6
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|
|
|
Diluted
|
|
|
121.5
|
|
|
124.9
|
|
|
123.5
|
|
|
126.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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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)
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|
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.
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|
Adjusting items are shown
in the table below (in millions):
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve
Months Ended
|
|
|
|
|
Dec.
31,
|
|
Dec.
31,
|
|
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
Net precious metal lease
expense
|
$
|
-
|
|
$
|
(1)
|
|
$
|
-
|
|
$
|
(2)
|
|
Charges related to cost
reduction actions and related items
|
|
-
|
|
|
(7)
|
|
|
-
|
|
|
(40)
|
|
Acquisition integration and
transaction costs
|
|
-
|
|
|
(7)
|
|
|
-
|
|
|
(13)
|
|
Losses on sales of assets and
other
|
|
-
|
|
|
(120)
|
|
|
-
|
|
|
(120)
|
|
|
Total adjusting items
|
$
|
-
|
|
$
|
(135)
|
|
$
|
-
|
|
$
|
(175)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The reconciliation from net
earnings (loss) 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,
|
|
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
NET EARNINGS (LOSS) ATTRIBUTABLE
TO OWENS CORNING
|
$
|
50
|
|
$
|
(110)
|
|
$
|
276
|
|
$
|
933
|
|
|
Less: Net earnings attributable
to noncontrolling interests
|
|
1
|
|
|
1
|
|
|
5
|
|
|
7
|
|
NET EARNINGS (LOSS)
|
|
51
|
|
|
(109)
|
|
|
281
|
|
|
940
|
|
|
Equity in net earnings of
affiliates
|
|
1
|
|
|
1
|
|
|
2
|
|
|
4
|
|
|
|
Income tax expense
(benefit)
|
|
11
|
|
|
14
|
|
|
74
|
|
|
(840)
|
|
EARNINGS (LOSS) FROM OPERATIONS
BEFORE TAXES
|
|
61
|
|
|
(96)
|
|
|
353
|
|
|
96
|
|
|
Interest expense, net
|
|
27
|
|
|
25
|
|
|
108
|
|
|
110
|
|
EARNINGS (LOSS) FROM OPERATIONS
BEFORE
|
|
88
|
|
|
(71)
|
|
|
461
|
|
|
206
|
|
|
INTEREST AND TAXES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: adjusting items from
above
|
|
-
|
|
|
(135)
|
|
|
-
|
|
|
(175)
|
|
ADJUSTED EBIT
|
$
|
88
|
|
$
|
64
|
|
$
|
461
|
|
$
|
381
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
3
Owens
Corning and Subsidiaries
Consolidated
Statements of Cash Flows
(unaudited)
(in
millions)
|
|
|
|
|
|
|
|
|
Twelve
Months Ended
|
|
|
|
|
|
|
Dec.
31,
|
|
|
|
|
|
|
2011
|
|
|
2010
|
|
|
2009
|
|
NET CASH FLOW PROVIDED BY
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
Net earnings
|
$
|
281
|
|
$
|
940
|
|
$
|
67
|
|
|
Adjustments to reconcile net
earnings to cash provided by
|
|
|
|
|
|
|
|
|
|
|
|
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
318
|
|
|
320
|
|
|
325
|
|
|
|
|
(Gain) loss on sale of
businesses and fixed assets
|
|
(30)
|
|
|
2
|
|
|
(9)
|
|
|
|
|
Asset impairments
|
|
-
|
|
|
117
|
|
|
3
|
|
|
|
|
Deferred income taxes
|
|
55
|
|
|
(867)
|
|
|
17
|
|
|
|
|
Provision for pension and other
employee benefits liabilities
|
|
36
|
|
|
26
|
|
|
40
|
|
|
|
|
Stock-based compensation
expense
|
|
21
|
|
|
23
|
|
|
52
|
|
|
|
|
Other non-cash
|
|
(22)
|
|
|
(19)
|
|
|
(15)
|
|
|
Restricted cash
|
|
-
|
|
|
-
|
|
|
7
|
|
|
Change in working
capital
|
|
(262)
|
|
|
15
|
|
|
134
|
|
|
Pension fund
contribution
|
|
(117)
|
|
|
(32)
|
|
|
(43)
|
|
|
Payments for other employee
benefits liabilities
|
|
(24)
|
|
|
(26)
|
|
|
(25)
|
|
|
Other
|
|
33
|
|
|
(11)
|
|
|
(12)
|
|
|
|
|
Net cash flow provided by
operating activities
|
|
289
|
|
|
488
|
|
|
541
|
|
NET CASH FLOW USED FOR INVESTING
ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
Additions to plant and
equipment
|
|
(442)
|
|
|
(314)
|
|
|
(243)
|
|
|
Investment in subsidiaries and
affiliates, net of cash acquired
|
|
(84)
|
|
|
-
|
|
|
-
|
|
|
Proceeds from the sale of assets
or affiliates
|
|
81
|
|
|
65
|
|
|
39
|
|
|
|
|
Net cash flow used for investing
activities
|
|
(445)
|
|
|
(249)
|
|
|
(204)
|
|
NET CASH FLOW PROVIDED BY (USED
FOR) FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
Proceeds from senior revolving
credit facility
|
|
1,547
|
|
|
631
|
|
|
260
|
|
|
Payments on senior revolving
credit facility
|
|
(1,423)
|
|
|
(619)
|
|
|
(586)
|
|
|
Proceeds from long-term
debt
|
|
164
|
|
|
5
|
|
|
350
|
|
|
Payments on long-term
debt
|
|
(10)
|
|
|
(609)
|
|
|
(15)
|
|
|
Investment in subsidiaries and
affiliates, net of cash acquired
|
|
-
|
|
|
(30)
|
|
|
-
|
|
|
Net increase (decrease) in
short-term debt
|
|
26
|
|
|
(10)
|
|
|
(20)
|
|
|
Purchases of treasury
stock
|
|
(138)
|
|
|
(120)
|
|
|
(3)
|
|
|
Other
|
|
8
|
|
|
2
|
|
|
(3)
|
|
|
|
|
Net cash flow provided by (used
for) financing activities
|
|
174
|
|
|
(750)
|
|
|
(17)
|
|
Effect of exchange rate changes
on cash
|
|
(18)
|
|
|
(1)
|
|
|
8
|
|
Net increase (decrease) in cash
and cash equivalents
|
|
-
|
|
|
(512)
|
|
|
328
|
|
Cash and cash equivalents at
beginning of period
|
|
52
|
|
|
564
|
|
|
236
|
|
CASH AND CASH EQUIVALENTS AT END
OF PERIOD
|
$
|
52
|
|
$
|
52
|
|
$
|
564
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DISCLOSURE OF CASH FLOW
INFORMATION
|
|
|
|
|
|
|
|
|
|
|
Cash paid during the year for
income taxes
|
$
|
24
|
|
$
|
16
|
|
$
|
18
|
|
|
Cash paid during the year for
interest
|
$
|
111
|
|
$
|
108
|
|
$
|
113
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
4
Owens
Corning and Subsidiaries
Consolidated
Balance Sheets
(unaudited)
(in
millions)
|
|
|
|
|
|
|
|
Dec.
31,
|
|
Dec.
31,
|
|
ASSETS
|
|
2011
|
|
2010
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
52
|
|
$
|
52
|
|
|
Receivables, less allowances of
$15 at Dec. 31, 2011 and $19 at Dec. 31, 2010
|
|
|
610
|
|
|
546
|
|
|
Inventories
|
|
|
795
|
|
|
620
|
|
|
Assets held for sale -
current
|
|
|
-
|
|
|
16
|
|
|
Other current assets
|
|
|
179
|
|
|
174
|
|
|
|
Total current assets
|
|
|
1,636
|
|
|
1,408
|
|
Property, plant and equipment,
net
|
|
|
2,904
|
|
|
2,754
|
|
Goodwill
|
|
|
1,144
|
|
|
1,088
|
|
Intangible assets
|
|
|
1,073
|
|
|
1,090
|
|
Deferred income taxes
|
|
|
538
|
|
|
529
|
|
Assets held for sale -
non-current
|
|
|
-
|
|
|
26
|
|
Other non-current
assets
|
|
|
232
|
|
|
263
|
|
TOTAL ASSETS
|
|
$
|
7,527
|
|
$
|
7,158
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
|
|
|
Accounts payable and accrued
liabilities
|
|
$
|
876
|
|
$
|
942
|
|
|
Short-term debt
|
|
|
28
|
|
|
1
|
|
|
Long-term debt – current
portion
|
|
|
4
|
|
|
5
|
|
|
Liabilities held for sale -
current
|
|
|
-
|
|
|
7
|
|
|
|
Total current
liabilities
|
|
|
908
|
|
|
955
|
|
Long-term debt, net of current
portion
|
|
|
1,930
|
|
|
1,629
|
|
Pension plan
liability
|
|
|
435
|
|
|
378
|
|
Other employee benefits
liability
|
|
|
267
|
|
|
298
|
|
Deferred income taxes
|
|
|
51
|
|
|
75
|
|
Other liabilities
|
|
|
195
|
|
|
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
|
|
|
3,907
|
|
|
3,876
|
|
|
Accumulated earnings
|
|
|
470
|
|
|
194
|
|
|
Accumulated other comprehensive
deficit
|
|
|
(315)
|
|
|
(194)
|
|
|
Cost of common stock in treasury
(c)
|
|
|
(362)
|
|
|
(229)
|
|
|
|
Total Owens Corning
stockholders' equity
|
|
|
3,701
|
|
|
3,648
|
|
|
Noncontrolling
interests
|
|
|
40
|
|
|
38
|
|
Total equity
|
|
|
3,741
|
|
|
3,686
|
|
TOTAL LIABILITIES AND
EQUITY
|
|
$
|
7,527
|
|
$
|
7,158
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
10 shares authorized; none
issued or outstanding at Dec. 31, 2011 and Dec. 31, 2010
|
|
(b)
|
400 shares authorized; 134.4
issued and 120.9 outstanding at Dec. 31, 2011; 133.2 issued and
123.9 outstanding
at Dec. 31, 2010
|
|
(c)
|
13.5 shares at Dec. 31, 2011 and
9.3 shares at Dec. 31, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
5
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):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve
Months Ended
|
|
|
|
Dec.
31,
|
|
Dec.
31,
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
Net sales
|
$
|
459
|
|
$
|
475
|
|
$
|
1,976
|
|
$
|
1,906
|
|
|
% change from
prior year
|
|
-3%
|
|
|
7%
|
|
|
4%
|
|
|
17%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT
|
$
|
49
|
|
$
|
59
|
|
$
|
201
|
|
$
|
175
|
|
|
EBIT as a % of net
sales
|
|
11%
|
|
|
12%
|
|
|
10%
|
|
|
9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
expense
|
$
|
31
|
|
$
|
27
|
|
$
|
128
|
|
$
|
117
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
In 2010, changes were 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.
|
|
|
|
Three Months
Ended
|
|
Twelve
Months Ended
|
|
|
Dec.
31,
|
|
Dec.
31,
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
Net sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insulation
|
$
|
387
|
|
$
|
356
|
|
$
|
1,368
|
|
$
|
1,309
|
|
|
Roofing
|
|
384
|
|
|
340
|
|
|
2,169
|
|
|
1,847
|
|
|
Other
|
|
-
|
|
|
21
|
|
|
-
|
|
|
87
|
|
Total Building
Materials
|
$
|
771
|
|
$
|
717
|
|
$
|
3,537
|
|
$
|
3,243
|
|
|
% change from
prior year
|
8%
|
|
-4%
|
|
9%
|
|
-2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insulation
|
$
|
-
|
|
$
|
(22)
|
|
$
|
(97)
|
|
$
|
(102)
|
|
|
Roofing
|
|
55
|
|
|
37
|
|
|
429
|
|
|
405
|
|
|
Other
|
|
-
|
|
|
(6)
|
|
|
-
|
|
|
(22)
|
|
Total Building
Materials
|
$
|
55
|
|
$
|
9
|
|
$
|
332
|
|
$
|
281
|
|
|
EBIT as a % of net
sales
|
7%
|
|
1%
|
|
9%
|
|
9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insulation
|
$
|
27
|
|
$
|
23
|
|
$
|
116
|
|
$
|
117
|
|
|
Roofing
|
|
10
|
|
|
12
|
|
|
41
|
|
|
42
|
|
|
Other
|
|
-
|
|
|
9
|
|
|
-
|
|
|
9
|
|
Total Building
Materials
|
$
|
37
|
|
$
|
44
|
|
$
|
157
|
|
$
|
168
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
Twelve
Months Ended
|
|
|
|
Dec.
31,
|
|
Dec.
31,
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
Net precious metal lease
expense
|
$
|
-
|
|
$
|
(1)
|
|
$
|
-
|
|
$
|
(2)
|
|
Charges related to cost
reduction actions and related items
|
|
-
|
|
|
(7)
|
|
|
(17)
|
|
|
(40)
|
|
Acquisition integration and
transaction costs
|
|
-
|
|
|
(7)
|
|
|
-
|
|
|
(13)
|
|
Gains (losses) on sales of
assets and related charges
|
|
-
|
|
|
(120)
|
|
|
16
|
|
|
(120)
|
|
General corporate
expense
|
|
(16)
|
|
|
(4)
|
|
|
(71)
|
|
|
(75)
|
|
EBIT
|
$
|
(16)
|
|
$
|
(139)
|
|
$
|
(72)
|
|
$
|
(250)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
$
|
7
|
|
$
|
7
|
|
$
|
33
|
|
$
|
35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
6
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 (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
|
|
Three Months
Ended
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Twelve
Months Ended
|
|
|
|
|
|
March
31,
|
|
June
30,
|
September
30,
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
|
2011
|
|
|
2010
|
|
|
2011
|
|
|
2010
|
|
2011
|
|
|
2010
|
|
|
2011
|
|
|
2010
|
|
|
2011
|
|
|
2010
|
|
RECONCILIATION TO ADJUSTED
EARNINGS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) attributable
to Owens Corning
|
$
|
24
|
|
$
|
48
|
|
$
|
78
|
|
$
|
937
|
$
|
124
|
|
$
|
58
|
|
$
|
50
|
|
$
|
(110)
|
|
$
|
276
|
|
$
|
933
|
|
|
|
Adjustment to remove
adjusting
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
items net of pro forma effective
tax rate*
|
|
-
|
|
|
11
|
|
|
-
|
|
|
4
|
|
-
|
|
|
15
|
|
|
-
|
|
|
101
|
|
|
-
|
|
|
131
|
|
|
|
Adjustment to tax expense to
reflect pro forma tax rate*
|
|
3
|
|
|
(6)
|
|
|
7
|
|
|
(868)
|
|
(8)
|
|
|
(29)
|
|
|
(2)
|
|
|
38
|
|
|
-
|
|
|
(865)
|
|
ADJUSTED EARNINGS
|
$
|
27
|
|
$
|
53
|
|
$
|
85
|
|
$
|
73
|
$
|
116
|
|
$
|
44
|
|
$
|
48
|
|
$
|
29
|
|
$
|
276
|
|
$
|
199
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
$
|
0.62
|
|
$
|
7.33
|
$
|
1.01
|
|
$
|
0.46
|
|
$
|
0.41
|
|
$
|
(0.89)
|
|
$
|
2.23
|
|
$
|
7.37
|
|
|
|
Adjustment to remove adjusting
items net of pro forma tax rate*
|
|
-
|
|
|
0.09
|
|
|
-
|
|
|
0.03
|
|
-
|
|
|
0.12
|
|
|
-
|
|
|
0.82
|
|
|
-
|
|
|
1.03
|
|
|
|
Adjustment to tax expense to
reflect pro forma tax rate*
|
|
0.03
|
|
|
(0.05)
|
|
|
0.06
|
|
|
(6.79)
|
|
(0.06)
|
|
|
(0.23)
|
|
|
(0.01)
|
|
|
0.30
|
|
|
-
|
|
|
(6.83)
|
|
ADJUSTED DILUTED EARNINGS PER
SHARE ATTRIBUTABLE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TO OWENS CORNING COMMON
STOCKHOLDERS
|
$
|
0.22
|
|
$
|
0.42
|
|
$
|
0.68
|
|
$
|
0.57
|
$
|
0.95
|
|
$
|
0.35
|
|
$
|
0.40
|
|
$
|
0.23
|
|
$
|
2.23
|
|
$
|
1.57
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION TO DILUTED SHARES
OUTSTANDING
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares
outstanding used
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
for basic earnings per
share
|
|
123.8
|
|
|
126.5
|
|
|
124.0
|
|
|
126.8
|
|
121.7
|
|
|
125.1
|
|
|
120.5
|
|
|
123.7
|
|
|
122.5
|
|
|
125.6
|
|
|
|
Non-vested restricted
shares
|
|
1.0
|
|
|
0.7
|
|
|
0.9
|
|
|
0.7
|
|
0.6
|
|
|
1.3
|
|
|
0.8
|
|
|
1.0
|
|
|
0.7
|
|
|
0.8
|
|
|
|
Options to purchase common
stock
|
|
0.5
|
|
|
0.3
|
|
|
0.5
|
|
|
0.4
|
|
0.3
|
|
|
0.2
|
|
|
0.2
|
|
|
0.2
|
|
|
0.3
|
|
|
0.2
|
|
Diluted shares
outstanding
|
|
125.3
|
|
|
127.5
|
|
|
125.4
|
|
|
127.9
|
|
122.6
|
|
|
126.6
|
|
|
121.5
|
|
|
124.9
|
|
|
123.5
|
|
|
126.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*In 2011 the quarterly tax
expense was adjusted to reflect the actual full year effective tax
rate of 21 percent. In 2010, the quarterly and full year tax
expense was adjusted to use an effective rate of 25 percent based
upon the projected blend of United States and non-United States
operations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Owens Corning