Growth in Adjusted Earnings Driven by Strong Roofing Performance
and Composites' Return to Profitability TOLEDO, Ohio, Oct. 28
/PRNewswire-FirstCall/ -- Owens Corning (NYSE:OC) today reported
consolidated net sales of $1.3 billion during the third quarter of
2009, compared with $1.6 billion in the third quarter of 2008. The
third quarter was highlighted by continued outstanding performance
in the Company's Roofing business. Composites returned to
profitability due to successful cost-reduction actions and steadily
improving Composites demand. Owens Corning's third-quarter 2009
adjusted earnings were $78 million, or $0.61 per adjusted diluted
share, compared with $73 million, or $0.57 per adjusted diluted
share, in 2008. The Company reported third-quarter 2009 net
earnings of $80 million, or $0.63 per diluted share, compared with
a loss of $807 million, or a loss of $6.35 per diluted share, in
2008, which included a non-cash charge of $901 million to establish
an accounting valuation allowance against net U.S. deferred tax
assets related to net operating losses. See Tables 1 through 3 for
a discussion and reconciliation of these items. Consolidated
Third-Quarter 2009 Results -- Earnings Before Interest and Taxes
(EBIT) for the third quarter ended Sept. 30, 2009, were $120
million, compared with EBIT of $113 million during the same period
in 2008. Adjusted EBIT for the third quarter of 2009 was $135
million, compared with $126 million in the third quarter of 2008.
See Table 2. -- EBIT was $190 million for the first nine months of
2009, compared with EBIT of $208 million during the same period of
2008. Adjusted EBIT for the first nine months of 2009 was $275
million, compared with $269 million during the same period of 2008.
-- The Company generated $332 million in free cash flow during the
third quarter of 2009, compared with $8 million during the same
quarter in 2008. See Table 7. -- Gross margin as a percentage of
sales was 21 percent in the third quarter of 2009, compared with 17
percent in the same period of 2008. -- Third-quarter 2009 Marketing
and Administrative expenses were $16 million less than the same
period in 2008. -- In the nine months ended Sept. 30, 2009, the
Company's safety performance improved approximately 8 percent
compared with performance throughout 2008. "I'm pleased with our
excellent third-quarter results," said Mike Thaman, chairman and
chief executive officer. "The aggressive actions we've taken to
reduce our costs and inventory are paying off. We sustained strong
financial performance and generated significant cash flow driven by
our outstanding results in Roofing. Our Composites segment returned
to profitability. Our balance sheet remains strong. We will
maintain our focus on cash generation and finish the year
well-positioned to enter 2010." Outlook Owens Corning is on track
to surpass $160 million in cost savings during 2009. The Company is
also on track to meet its capital spending target of $225 million,
which is a reduction of about $140 million compared with 2008, in
each case excluding precious metal purchases. Depreciation and
Amortization is estimated to be $320 million for the year. Given
the Company's strong cash generation in the third quarter, free
cash flow in 2009 could be as much as $300 million. This represents
a strengthening from the Company's prior guidance. Free cash flow
for the period is calculated as the change in debt less cash on
hand from the beginning of the period to the end of the period.
This calculation includes adjustments to exclude the cash impact of
issuing new stock, repurchasing treasury stock and paying
stockholder dividends. In the Composites segment, the Company
believes demand will generally continue to trend upward as global
industrial demand improves. Owens Corning has begun increasing
production, although production still remains below demand. The
Composites segment will continue to realize the benefits of
synergies from the 2007 acquisition and the cost-reduction actions
taken in 2008 and 2009. Demand in the Company's Building Materials
segment is expected to be affected through the remainder of 2009 by
weakness in the U.S. housing industry. Roofing performance is
expected to more than offset weakness in Insulation for the
remainder of the year. Cash taxes in 2009 are expected to be less
than the $33 million paid in 2008. The Company estimates a
long-term effective tax rate of 25 percent based on the blend of
its U.S. and non-U.S. operations. Fourth-quarter and full-year 2009
results are scheduled to be announced on Wednesday, Feb. 17, 2010.
Other Financial Items -- In the third quarter and first nine months
of 2009, actions were taken that will result in significant cost
savings during the year. Costs related to these actions were $4
million in the third quarter of 2009 and total $45 million for the
first nine months of the year. -- At the end of the third quarter
of this year, Owens Corning had net debt of $1.8 billion, comprised
of $2.2 billion of short- and long-term debt and cash on hand of
$387 million. See Table 7. -- Current cash on hand coupled with
future cash flows and other sources of liquidity will provide
sufficient liquidity to meet the Company's cash requirements. Owens
Corning has no significant debt maturities until the fourth quarter
of 2011 and remains well within compliance with the financial
covenants in its senior revolving credit facility and senior
term-loan facility. -- Owens Corning's federal tax net operating
loss carryforward was $2.6 billion at the end of the third quarter
of 2009. -- On Oct. 8, 2009, Standard & Poor's Ratings Services
affirmed its BBB- rating on Owens Corning and improved the outlook
to stable from negative. Business Segment Highlights Composites NET
SALES The rapid and significant global economic slowdown in the
fourth quarter of 2008 dramatically reduced overall demand for
composite materials. Demand for the Company's Reinforcements
products was approximately 45-percent lower in December 2008,
compared to the average monthly demand in 2008 through November.
Demand has been steadily trending upward since that time, but it
has not yet recovered to levels seen in the first nine months of
2008. These declines represented approximately one-half, and
approximately two-thirds, of the decrease in net sales for each of
the three and nine months ended Sept. 30, 2009, respectively, as
compared to the same periods in the prior year. Third-quarter 2009
sales were negatively impacted by unfavorable product mix, lower
selling prices and unfavorable currency translation, compared to
the same period in 2008. Year-to-date 2009 sales, compared with the
first nine months of 2008, were negatively impacted by unfavorable
currency translation and the May 2008 divestiture of two composite
manufacturing plants in Battice, Belgium, and Birkeland, Norway.
EBIT Composites segment EBIT was significantly lower in the three
and nine months ended Sept. 30, 2009, as compared to the same
periods in 2008. Lower sales volumes, including the impact of
underutilization of production capacity and lower selling prices,
drove these declines. In response to market conditions, the Company
took aggressive actions in this segment in the first half of 2009
to reduce inventories and operating costs focusing on cash
generation. Headcount was reduced and production levels were
decreased by idling and shutting down production lines. The Company
managed production capacity below demand beginning in the first
quarter of 2009 and continuing through the third quarter. The EBIT
margin improved in this segment from the second quarter of 2009 to
the third quarter of 2009 as a result of cost-reduction actions and
improved demand. Building Materials NET SALES This segment includes
the Insulation, Roofing and Other businesses. Net sales in Owens
Corning's Building Materials segment were lower in the three and
nine months ended Sept. 30, 2009, as compared to the same periods
of 2008, primarily driven by demand weakness resulting from lower
U.S. housing starts. In the Roofing business, lower sales volumes
decreased net sales by approximately 10 percent in the 2009 periods
as compared to 2008. These volume declines were a result of lower
demand associated with storm activity and new residential
construction. Offsetting the impact of lower sales volumes was the
impact of higher selling prices. Selling prices had been increasing
to recover inflation in raw material costs, particularly asphalt,
leading up to the fourth quarter of 2008. Selling prices have been
generally stable since that time. In Insulation, declines in demand
drove the decreases in net sales, representing approximately
three-fourths and substantially all of the decline for the three
month and the year-to-date comparison, respectively. Owens
Corning's experience is that the Company's residential insulation
demand lags residential housing starts by approximately three
months. Second-quarter 2009 U.S. housing starts were 46-percent
lower than those in the second quarter of 2008, according to data
reported by the U.S. Census Bureau. The Company's Insulation
business includes a diverse portfolio with a geographic mix of
U.S., Canada, Asia-Pacific and Latin America; a market mix of
residential, commercial, industrial, and other markets; and a
channel mix of retail, contractor and distribution. Weakness seen
in many of these sectors has become more pronounced in the last two
quarters. EBIT Building Materials segment EBIT improved
substantially during the current year. This improvement was driven
by unit margin improvements in the Company's Roofing business,
partially offset by lower margins in the Insulation business. In
Owens Corning's Roofing business, unit margin improvements
accounted for substantially all of the increase in EBIT for the
three and nine months ended Sept. 30, 2009, as compared to the same
periods in 2008. Roofing unit margins began improving in the second
quarter of 2008 as selling price increases outpaced inflation. For
the three-month comparison, the Company also experienced lower raw
material costs in 2009 than in 2008. Additional factors impacting
the third-quarter comparison were improvements in material
efficiencies and lower sales volumes. In the Insulation business,
lower sales volumes, including the impact of underutilization of
production capacity, accounted for substantially all of the
decrease in EBIT. Owens Corning took actions across the Building
Materials segment throughout 2008 and into the first half of 2009
to reduce production capacity and align the Company's cost
structure with market demand in response to the continued weak U.S.
housing market. The Company will continue to manage production
capacity relative to seasonal demand. Conference Call and
Presentation Wednesday, Oct. 28, 2009 11 a.m. ET All Callers Live
dial-in telephone number: U.S. 1-866-356-4281 or 1-617-597-5395
(Please dial in 10 minutes before conference call start time)
Passcode: 89627367 Presentation To view the slide presentation
during the conference call, please log on to the live webcast at
http://www.owenscorning.com/investors. A telephone replay will be
available through Nov. 4, 2009, at 1-888-286- 8010 or
1-617-801-6888. Passcode: 34480300. A replay of the webcast will
also be available at http://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 55 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 $6 billion in 2008 and about 16,000 employees in 30
countries on five continents. Additional information is available
at http://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 pressures; weather
conditions; our level of indebtedness; industry and economic
conditions that adversely 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 involving implementation of
acquisitions, divestitures and joint ventures; our ability to use
our net operating loss carryforwards; achievement of expected
synergies, cost reductions and/or productivity improvements; issues
involving implementation of new business systems; foreign exchange
fluctuations; the success of 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 Oct. 28, 2009, 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 data) Three Months Ended Nine Months
Ended Sept. 30, Sept. 30, 2009 2008 2009 2008 NET SALES $1,348
$1,629 $3,641 $4,556 COST OF SALES 1,068 1,358 2,953 3,834 Gross
margin 280 271 688 722 OPERATING EXPENSES Marketing and
administrative expenses 135 151 387 458 Science and technology
expenses 15 16 45 52 Charges related to cost reduction actions 3 2
33 8 Chapter 11-related reorganization items 1 - 1 - Employee
emergence equity program expense 5 6 17 20 Other (income) expenses
1 (17) 15 (24) Total operating expenses 160 158 498 514 EARNINGS
BEFORE INTEREST AND TAXES 120 113 190 208 Interest expense, net 30
29 81 90 EARNINGS BEFORE TAXES 90 84 109 118 Income tax expense 8
892 23 896 EARNINGS (LOSS) BEFORE EQUITY IN NET EARNINGS (LOSS) OF
AFFILIATES 82 (808) 86 (778) Equity in net earnings (loss) of
affiliates (1) 2 - 1 NET EARNINGS (LOSS) 81 (806) 86 (777) Less:
Net earnings attributable to noncontrolling interests 1 1 1 2 NET
EARNINGS (LOSS) ATTRIBUTABLE TO OWENS CORNING $80 $(807) $85 $(779)
EARNINGS (LOSS) PER COMMON SHARE ATTRIBUTABLE TO OWENS CORNING
COMMON STOCKHOLDERS Basic $0.64 $(6.35) $0.68 $(6.08) Diluted $0.63
$(6.35) $0.67 $(6.08) WEIGHTED AVERAGE COMMON SHARES Basic 124.5
127.0 124.5 128.2 Diluted 127.1 127.0 126.8 128.2 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) (in millions) For purposes of internal review of Owens
Corning's year-over-year operational performance, management
excludes from net earnings attributable to Owens Corning certain
items it believes are not the result of current operations.
Additionally, management views net precious metal lease expense as
a financing item included in net interest expense rather than as a
product cost included in cost of sales. The adjusted financial
measure resulting from these adjustments is used internally by
Owens Corning for various purposes, including reporting results of
operations to the Board of Directors, analysis of performance, and
related employee compensation measures. Although management
believes that these adjustments result in a measure that provides
it a useful representation of its operational performance, the
adjusted measure should not be considered in isolation or as a
substitute for net earnings attributable to Owens Corning as
prepared in accordance with accounting principles generally
accepted in the United States. Adjusting items are shown in the
table below (in millions): Three Months Ended Nine Months Ended
Sept. 30, Sept. 30, 2009 2008 2009 2008 Chapter 11-related
reorganization items $(1) $- $(1) $- Net precious metal lease
income (expense) 1 (1) - (7) Charges related to cost reduction
actions and related items (4) (2) (45) (8) Acquisition integration
and transaction costs (7) (20) (21) (62) Gains (losses) on sales of
assets and other 1 16 (1) 36 Employee emergence equity program
expense (5) (6) (17) (20) Total adjusting items $(15) $(13) $(85)
$(61) The reconciliation from net earnings (loss) attributable to
Owens Corning to Adjusted EBIT is shown in the table below (in
millions): Three Months Ended Nine Months Ended Sept. 30, Sept. 30,
2009 2008 2009 2008 NET EARNINGS (LOSS) ATTRIBUTABLE TO OWENS
CORNING $80 $(807) $85 $(779) Less: Net earnings attributable to
noncontrolling interests 1 1 1 2 NET EARNINGS (LOSS) 81 (806) 86
(777) Equity in net earnings (loss) of affiliates (1) 2 - 1
EARNINGS (LOSS) BEFORE EQUITY IN NET EARNINGS (LOSS) OF AFFILIATES
82 (808) 86 (778) Income tax expense 8 892 23 896 EARNINGS BEFORE
TAXES 90 84 109 118 Interest expense, net 30 29 81 90 EARNINGS
BEFORE INTEREST AND TAXES 120 113 190 208 Less: adjusting items
from above (15) (13) (85) (61) ADJUSTED EBIT $135 $126 $275 $269
Table 3 Owens Corning and Subsidiaries EPS Reconciliation Schedules
(unaudited) (in millions, except per share data) For purposes of
internal review of Owens Corning's year-over-year operational
performance, management excludes from net earnings attributable to
Owens Corning certain items it believes are not the result of
current operations. Additionally, management views net precious
metal lease expense as a financing item included in net interest
expense rather than as a product cost included in cost of sales.
The adjusted financial measures resulting from these adjustments
are used internally by Owens Corning for various purposes,
including reporting results of operations to the Board of
Directors, analysis of performance and related employee
compensation measures. Although management believes that these
adjustments result in measures that provide it a useful
representation of its operational performance, the adjusted
measures should not be considered in isolation or as a substitute
for net earnings attributable to Owens Corning as prepared in
accordance with accounting principles generally accepted in the
United States. A reconciliation from net earnings attributable to
Owens Corning to adjusted earnings, a reconciliation from diluted
earnings per share to adjusted diluted earnings per share and a
reconciliation from weighted-average shares outstanding used for
diluted earnings per share to adjusted diluted shares outstanding
are shown in the tables below. Three Months Ended Nine Months Ended
September 30, September 30, 2009 2008 2009 2008 RECONCILIATION TO
ADJUSTED EARNINGS Net earnings attributable to Owens Corning $80
$(807) $85 $(779) Adjustment to remove adjusting items 15 13 85 61
Adjustment to classify net precious metal lease expense as interest
1 (1) - (7) Adjustment to tax expense to reflect an expected
long-term rate of 25%* (18) 868 (26) 853 ADJUSTED EARNINGS $78 $73
$144 $128 RECONCILIATION TO ADJUSTED DILUTED EARNINGS PER SHARE
ATTRIBUTABLE TO OWENS CORNING COMMON STOCKHOLDERS DILUTED LOSS PER
COMMON SHARE ATTRIBUTABLE TO OWENS CORNING COMMON STOCKHOLDERS
$0.63 $(6.35) $0.67 $(6.08) Convert to adjusted diluted earnings
(loss) per share - 0.10 - 0.11 Adjustment to remove adjusting items
0.12 0.10 0.67 0.47 Adjustment to classify net precious metal lease
expense as interest 0.01 (0.01) - (0.05) Adjustment to tax expense
to reflect an expected long-term rate of 25%* (0.15) 6.73 (0.21)
6.53 ADJUSTED DILUTED EARNINGS PER SHARE ATTRIBUTABLE TO OWENS
CORNING COMMON STOCKHOLDERS $0.61 $0.57 $1.13 $0.98 RECONCILIATION
TO ADJUSTED DILUTED SHARES OUTSTANDING Weighted-average shares
outstanding used for basic earnings per share 124.5 127.0 124.5
128.2 Non-vested restricted shares 2.3 1.3 2.1 1.2 Stock options
0.3 - 0.2 - Shares related to employee emergence program 0.1 0.9
0.1 1.0 Adjusted diluted shares outstanding ** 127.2 129.2 126.9
130.4 *The company estimates a long-term sustainable effective tax
rate of 25% based upon the projected blend of its U.S. and non-U.S.
operations. **The employee emergence shares are reflected as
outstanding because the employee emergence equity expense has been
removed from adjusted earnings. Table 4 Owens Corning and
Subsidiaries Consolidated Balance Sheets (unaudited) (in millions)
ASSETS Sept. 30, Dec. 31, 2009 2008 CURRENT ASSETS Cash and cash
equivalents $387 $236 Receivables, less allowances of $22 at Sept.
30, 2009 and $21 at Dec. 31, 2008 729 576 Inventories 695 899
Restricted cash - disputed distribution reserve 30 31 Assets held
for sale - current - 13 Other current assets 109 102 Total current
assets 1,950 1,857 Property, plant and equipment, net 2,790 2,819
Goodwill 1,125 1,124 Intangible assets 1,176 1,190 Deferred income
taxes 38 42 Assets held for sale - non-current - 3 Other
non-current assets 192 187 TOTAL ASSETS $7,271 $7,222 LIABILITIES
AND EQUITY CURRENT LIABILITIES Accounts payable and accrued
liabilities $931 $1,112 Accrued interest 38 9 Short-term debt 12 30
Long-term debt - current portion 10 16 Liabilities held for sale -
current - 8 Total current liabilities 991 1,175 Long-term debt, net
of current portion 2,192 2,172 Pension plan liability 338 308 Other
employee benefits liability 272 270 Deferred income taxes 424 400
Other liabilities 142 117 Commitments and contingencies Mandatorily
redeemable noncontrolling interest 30 - OWENS CORNING STOCKHOLDERS'
EQUITY Preferred stock, par value $0.01 per share (a) - - Common
stock, par value $0.01 per share (b) 1 1 Additional paid in capital
3,833 3,824 Accumulated deficit (718) (803) Accumulated other
comprehensive deficit (165) (183) Cost of common stock in treasury
(c) (101) (101) Total Owens Corning stockholders' equity 2,850
2,738 Noncontrolling interest 32 42 Total Equity 2,882 2,780 TOTAL
LIABILITIES AND EQUITY $7,271 $7,222 (a) 10 shares authorized; none
issued or outstanding at Sept. 30, 2009 and Dec. 31, 2008 (b) 400
shares authorized; 132.5 issued and 127.8 outstanding at Sept. 30,
2009; 131.7 issued and 127.0 outstanding at Dec. 31, 2008 (c) 4.7
shares at Sept. 30, 2009 and Dec. 31, 2008 Table 5 Owens Corning
and Subsidiaries Consolidated Statements of Cash Flows (unaudited)
(in millions) Nine Months Ended Sept. 30, 2009 2008 NET CASH FLOW
PROVIDED BY (USED FOR) OPERATING ACTIVITIES Net earnings (loss) $86
$(777) Adjustments to reconcile net earnings (loss) to cash
provided by (used for) operating activities: Depreciation and
amortization 238 240 Gain on sale of businesses and fixed assets
(10) (49) Impairment of long-lived assets 3 11 Deferred income
taxes 15 869 Provision for pension and other employee benefits
liabilities 26 29 Employee emergence equity program expense 17 20
Stock-based compensation expense 18 15 Increase in receivables
(151) (264) (Increase) decrease in inventories 240 (52) (Increase)
decrease in prepaid assets 7 (27) Increase (decrease) in accounts
payable and accrued liabilities (147) 54 Pension fund contribution
(34) (69) Payments for other employee benefits liabilities (19)
(18) Other (20) 1 Net cash flow provided by (used for) operating
activities 269 (17) NET CASH FLOW USED FOR INVESTING ACTIVITIES
Additions to plant and equipment (151) (294) Proceeds from the sale
of assets or affiliates 39 269 Net cash flow used for investing
activities (112) (25) NET CASH FLOW USED FOR FINANCING ACTIVITIES
Proceeds from issuance of senior notes 344 - Proceeds from senior
revolving credit facility 260 457 Payments on senior revolving
credit facility (586) (415) Proceeds from long-term debt 1 12
Payments on long-term debt (13) (8) Net decrease in short-term debt
(18) (7) Purchase of treasury stock - (62) Net cash flow used for
financing activities (12) (23) Effect of exchange rate changes on
cash 6 6 Net increase (decrease) in cash and cash equivalents 151
(59) Cash and cash equivalents at beginning of period 236 135 CASH
AND CASH EQUIVALENTS AT END OF PERIOD $387 $76 Table 6 Owens
Corning and Subsidiaries Segment Data and Additional Business
Information (unaudited) (in millions) Composites The table below
provides a summary of net sales, EBIT and depreciation and
amortization expense for the Composites segment (in millions).
Prior periods have been adjusted to reflect the change to two
reportable segments. Three Months Ended Nine Months Ended Sept. 30,
Sept. 30, 2009 2008 2009 2008 Net sales $451 $589 $1,187 $1,915 %
change from prior year -23% 48% -38% 66% EBIT $2 $54 $(35) $189
EBIT as a % of net sales 0% 9% -3% 10% Depreciation and
amortization expense $29 $33 $90 $97 Building Materials The table
below provides a summary of net sales, EBIT and depreciation and
amortization expense for the Building Materials segment and our
businesses within this segment (in millions). Prior periods have
been adjusted to reflect the change to two reportable segments.
Three Months Ended Nine Months Ended Sept. 30, Sept. 30, 2009 2008
2009 2008 Net sales Insulation $340 $412 $906 $1,198 Roofing 561
616 1,560 1,397 Other 38 67 110 189 Eliminations (2) (4) (8) (11)
Total Building Materials $937 $1,091 $2,568 $2,773 % change from
prior year -14% 19% -7% 4% EBIT Insulation $(9) $- $(76) $23
Roofing 177 95 458 115 Other (12) (3) (30) (11) Total Building
Materials $156 $92 $352 $127 EBIT as a % of net sales 17% 8% 14% 5%
Depreciation and amortization expense Insulation $31 $31 $90 $89
Roofing 9 11 31 30 Other 4 3 11 9 Total Building Materials $44 $45
$132 $128 Table 7 Owens Corning and Subsidiaries Free Cash Flow
(unaudited) (in millions) The following table presents the free
cash flow, or change in total debt less cash on hand including
adjustments to exclude the cash impact of issuing new stock,
repurchasing treasury stock and paying stockholder dividends, for
the three and nine months ended September 30, 2009 and 2008,
respectively (in millions): Three Months Ended September 30,
Balance as of September 30: 2009 2008 Short-term debt $12 $40
Long-term debt -- current portion 10 5 Long-term debt, net of
current portion 2,192 2,045 Total debt 2,214 2,090 Less: Cash and
cash equivalents 387 76 Net debt $1,827 $2,014 Balance as of June
30: 2009 2008 Short-term debt $9 $44 Long-term debt -- current
portion 11 7 Long-term debt, net of current portion 2,249 2,049
Total debt 2,269 2,100 Less: Cash and cash equivalents 110 121 Net
debt 2,159 1,979 Change in net debt 332 (35) Less: Purchases of
treasury stock for the three months ended September 30, 2008 - (43)
Free cash flow generated $332 $8 Nine Months Ended September 30,
Balance as of September 30: 2009 2008 Short-term debt $12 $40
Long-term debt -- current portion 10 5 Long-term debt, net of
current portion 2,192 2,045 Total debt 2,214 2,090 Less: Cash and
cash equivalents 387 76 Net debt $1,827 $2,014 Balance as of
December 31: 2008 2007 Short-term debt $30 $47 Long-term debt --
current portion 16 10 Long-term debt, net of current portion 2,172
1,993 Total debt 2,218 2,050 Less: Cash and cash equivalents 236
135 Net debt 1,982 1,915 Change in net debt 155 (99) Less:
Purchases of treasury stock for the nine months ended September 30,
2008 - (62) Free cash flow generated (used) $155 $(37) DATASOURCE:
Owens Corning CONTACT: Investor & Media Relations, Scott Deitz
of Owens Corning, +1-419-248-8935 Web Site:
http://www.owenscorning.com/
Copyright