Owens Corning Reports First-Quarter 2013 Results

               Owens Corning Reports First-Quarter 2013 Results

Strong First-Quarter Earnings Growth Positions Company for Success in 2013

- Roofing delivers EBIT margins of 20% on effective price execution

- Insulation on track for profitability in 2013

- Composites completes asset ramp-up; positioned to achieve positive operating
leverage for rest of 2013

- Company reaffirms 2013 outlook of at least $100 million growth in adjusted
EBIT

PR Newswire

TOLEDO, Ohio, April 24, 2013

TOLEDO, Ohio, April 24, 2013 /PRNewswire/ --Owens Corning (NYSE: OC) today
reported consolidated net sales of $1.3 billion in the first quarter of 2013,
essentially flat with the same period in 2012.

First-quarter 2013 adjusted earnings were $35 million, or $0.29 per diluted
share, compared with $11 million, or $0.09 per diluted share, during the same
period one year ago. The company reported net earnings of $22 million, or
$0.18 per diluted share, in the first quarter of 2013, compared to a net loss
of $46 million, or $0.38 per diluted share, in 2012. (See Tables 1, 2 and 3
for a discussion and reconciliation of these items.)

"Owens Corning delivered a strong first quarter with margin improvement in
both of our Building Materials businesses," said Chairman and Chief Executive
Officer Mike Thaman. "We grew first-quarter adjusted EBIT by $34 million,
driven by strong Roofing performance. Insulation demonstrated strong price
execution and is on track for full-year profitability and double-digit revenue
growth in 2013. And, Composites completed its asset ramp-up and is positioned
to achieve operating leverage that supports improved year-over-year margins
for the business.

"The first quarter was a positive start to the year and supports our full-year
outlook for at least $100 million of growth in adjusted EBIT. We continue to
believe that the pace of the U.S. housing recovery and its impact on the
margin performance of the Building Materials businesses will largely determine
the upside to our guidance," he added.

Consolidated First-Quarter Results

  oOwens Corning's primary safety metric, Recordable Incidence Rate (RIR),
    was 0.64 for the three months ended March 31, 2013. This compares to a
    rate of 0.37 in the same period one year ago.
  oAdjusted EBIT in the first quarter of 2013 was $77 million, up from $43
    million in 2012. In the first quarter of 2013, the company had certain
    items that were not the result of current operations. Before adjusting
    for these items, first-quarter 2013 EBIT was $57 million. This compares
    favorably with first-quarter 2012 EBIT, which was a loss of $12 million.
    (See Table 2 for a reconciliation of the adjusting items.)

Outlook

The company continues to expect at least $100 million in adjusted EBIT
improvement over 2012 as a result of company actions, an improving U.S.
housing market, and moderate global growth. It anticipates that the rate of
the U.S. housing market recovery and its impact on the margin performance of
the Building Materials businesses will largely determine the upside to this
guidance.

Roofing is expected to achieve improved full-year margins versus 2012.
First-quarter margins benefited from significantly lower price incentives than
the comparable period last year. The company anticipates that its April 1
price increase and the expected improvement in the U.S. housing market will
continue to support year-on-year margin improvement. While 2013 storm-related
volumes could compare unfavorably with the prior year, the company anticipates
that overall market conditions will improve this year.

Insulation will continue to benefit from the growth in U.S. residential new
construction, higher asset utilization rates, and better pricing. Prices have
improved across the business with strong sequential price performance and the
company has announced an additional price increase for the second quarter.
Even with this progress, prices remain significantly below historical levels
with opportunity for further improvement.

Composites is expected to achieve improved full-year financial performance.
With the asset ramp-up complete at the end of the first quarter of 2013, the
company expects margins in the business to benefit from positive leverage and
the asset repositioning executed in 2012.

The company estimates an effective tax rate of 25 percent to 28 percent for
2013, based on the blend of effective tax rates for its U.S. and non-U.S.
operations. The effective cash tax rate is estimated to be in the range of 10
percent to 12 percent on adjusted pre-tax earnings, due to the company's $2.3
billion U.S. tax net operating loss carryforward.

The company expects general corporate expenses to be about $120 million in
2013. General corporate expenses include corporate staff and other activities
that support the operations. Expenses will be higher in 2013 than in 2012 in
anticipation of incentive compensation levels consistent with improved
performance.

Next Earnings Announcement

Second-quarter 2013 results will be announced at 11 a.m. ET on Wednesday, July
24, 2013.

Conference Call and Presentation

Wednesday, April 24, 2013
10 a.m. Eastern Time

All Callers

  oLive dial-in telephone number – U.S.: 1.877.883.0383, or international:
    1.412.902.6506
  oEntry number – 123-6573 (please dial in 10-15 minutes before conference
    call start time)
  oLive webcast – http://services.choruscall.com/links/owens130424.html

Telephone and Webcast Replay

  oTelephone replay available through 9 a.m. on May 2, 2013
  oTelephone replay number – U.S.: 1.877.344.7529, or international
    +1.412.317.0088
  oConference replay number – 100-269-15
  oReplay of webcast also available at:
    http://services.choruscall.com/links/owens130424.html
  oWebcast available until April 24, 2014

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 58 consecutive
years, Owens Corning is committed to driving sustainability by delivering
solutions, transforming markets and enhancing lives. Celebrating its 75th
anniversary in 2013, Owens Corning is a market-leading innovator of
glass-fiber technology with sales of $5.2 billion in 2012 and approximately
15,000 employees in 27 countries on five continents. Additional information
is available at www.owenscorning.com.

Owens Corning Investor Relations News.

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 24,
2013, and is subject to change. The company does not undertake any duty to
update or revise forward-looking statements. Any distribution of this news
release after that date is not intended and will not be construed as updating
or confirming such information.





Table 1
Owens Corning and Subsidiaries
Consolidated Statements of Earnings (Loss)
(unaudited)
(in millions, except per share amounts)
                                                            Three Months Ended
                                                            Mar. 31,
                                                               2013     2012
NET SALES                                                   $  1,350  $ 1,346
COST OF SALES                                                  1,137    1,160
               Gross margin                                    213      186
OPERATING EXPENSES
    Marketing and administrative expenses                      133      137
    Science and technology expenses                            18       19
    Charges related to cost reduction actions                  1        34
    Other expenses                                             4        8
               Total operating expenses                        156      198
EARNINGS (LOSS) BEFORE INTEREST AND TAXES                      57       (12)
Interest expense, net                                          29       28
EARNINGS (LOSS) BEFORE TAXES                                   28       (40)
Less: Income tax expense                                       6        5
Equity in net earnings of affiliates                           -        -
NET EARNINGS (LOSS)                                            22       (45)
Less: Net earnings attributable to noncontrolling              -        1
interests
NET EARNINGS (LOSS) ATTRIBUTABLE TO OWENS
    CORNING                                                 $  22     $ (46)
EARNINGS (LOSS) PER COMMON SHARE ATTRIBUTABLE TO
    OWENS CORNING COMMON STOCKHOLDERS
               Basic                                        $  0.19   $ (0.38)
               Diluted                                      $  0.18   $ (0.38)
WEIGHTED-AVERAGE COMMON SHARES
               Basic                                           118.5    121.1
               Diluted                                         119.6    121.1



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,
                                                            2013       2012
Charges related to cost reduction actions and related       $  (9)     $  (55)
items
Losses related to Hurricane Sandy                              (11)       -
  Total adjusting items                                     $  (20)    $  (55)
                                                            Three Months Ended
                                                            March 31,
                                                            2013       2012
NET EARNINGS (LOSS) ATTRIBUTABLE TO OWENS CORNING           $  22      $  (46)
  Less: Net earnings attributable to noncontrolling            -          1
  interests
NET EARNINGS (LOSS)                                            22         (45)
  Income tax expense                                           6          5
EARNINGS (LOSS) BEFORE TAXES                                   28         (40)
  Interest expense, net                                        29         28
EARNINGS (LOSS) BEFORE INTEREST AND TAXES                      57         (12)
  Less: adjusting items from above                             (20)       (55)
ADJUSTED EBIT                                               $  77      $  43





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,
                                                          2013         2012
RECONCILIATION TO ADJUSTED EARNINGS
Net earnings (loss) attributable to Owens Corning     $   22        $  (46)
            Adjustment to remove adjusting items          15           43
            net of tax
            Adjustment to tax expense to reflect pro      (2)          14
            forma tax rate*
ADJUSTED EARNINGS                                     $   35        $  11
RECONCILIATION TO ADJUSTED DILUTED EARNINGS PER SHARE
      ATTRIBUTABLE TO OWENS CORNING COMMON STOCKHOLDERS
DILUTED EARNINGS (LOSS) PER COMMON SHARE
ATTRIBUTABLE
      TO OWENS CORNING COMMON STOCKHOLDERS            $   0.18      $  (0.38)
            Adjustment to remove adjusting items          0.13         0.36
            net of tax
            Adjustment to tax expense to reflect a        (0.02)       0.11
            pro forma tax rate*
ADJUSTED DILUTED EARNINGS PER SHARE
      ATTRIBUTABLE TO OWENS CORNING COMMON            $   0.29      $  0.09
      STOCKHOLDERS
RECONCILIATION TO DILUTED SHARES OUTSTANDING
Weighted-average shares outstanding
      used for basic earnings per share                   118.5        121.1
            Non-vested restricted shares                  0.6          -
            Options to purchase common stock              0.5          -
Diluted shares outstanding                                119.6        121.1
* Pro forma tax rate used in 2013 was 26.5% (midpoint of guidance), and, 23%
in 2012 as this was the adjusted effective tax rate of the Company in 2012.





Table 4
Owens Corning and Subsidiaries
Consolidated Balance Sheets
(unaudited)
(in millions)
                                            Mar. 31,             Dec. 31,
ASSETS                                      2013                 2012
CURRENT ASSETS
    Cash and cash equivalents               $     62             $    55
    Receivables, less allowances of
    $16 at Mar. 31,2013 and $17 at                884                 600
    Dec. 31, 2012
    Inventories                                   776                 786
    Other current assets                          195                 171
            Total current assets                  1,917               1,612
Property, plant and equipment, net                2,865               2,903
Goodwill                                          1,143               1,143
Intangible assets                                 1,038               1,045
Deferred income taxes                             603                 604
Other non-current assets                          251                 261
TOTAL ASSETS                                $     7,817          $    7,568
LIABILITIES AND EQUITY
CURRENT LIABILITIES
    Accounts payable and accrued            $     920            $    897
    liabilities
    Short-term debt                               10                  5
    Long-term debt - current portion              4                   4
            Total current liabilities             934                 906
Long-term debt, net of current portion            2,301               2,076
Pension plan liability                            462                 480
Other employee benefits liability                 271                 274
Deferred income taxes                             36                  38
Other liabilities                                 219                 219
OWENS CORNING STOCKHOLDERS' EQUITY
    Preferred stock, par value $0.01              -                   -
    per share (a)
    Common stock, par value $0.01 per             1                   1
    share (b)
    Additional paid in capital                    3,941               3,925
    Accumulated earnings                          473                 451
    Accumulated other comprehensive               (375)               (364)
    deficit
    Cost of common stock in treasury              (483)               (475)
    (c)
            Total Owens Corning                   3,557               3,538
            stockholders' equity
    Noncontrolling interests                      37                  37
Total equity                                      3,594               3,575
TOTAL LIABILITIES AND EQUITY                $     7,817          $    7,568
(a) 10 shares authorized; none issued or outstanding at Mar. 31,2013 and Dec.
    31, 2012
(b) 400 shares authorized; 135.5 issued and 118.9 outstanding at Mar. 31,2013;
    135.6 issued and 118.3 outstanding at Dec. 31, 2012
(c) 16.6 shares at Mar. 31,2013 and 17.3 shares at Dec. 31, 2012





Table 5
Owens Corning and Subsidiaries
Consolidated Statements of Cash Flows
(unaudited)
(in millions)
                                                            Three Months Ended
                                                            Mar. 31,
                                                            2013        2012
NET CASH FLOW USED FOR OPERATING ACTIVITIES
 Net earnings (loss)                                      $ 22       $  (45)
 Adjustments to reconcile net earnings to cash
 provided by operating activities:
           Depreciation and amortization                    78          89
           Gain on sale of businesses and fixed assets      -           (1)
           Deferred income taxes                            -           6
           Provision for pension and other employee         6           11
           benefits liabilities
           Stock-based compensation expense                 7           7
           Other non-cash                                   (2)         (4)
 Change in working capital                                  (271)       (232)
 Pension fund contribution                                  (12)        (18)
 Payments for other employee benefits liabilities           (5)         (6)
 Other                                                      (2)         -
           Net cash flow used for operating activities      (179)       (193)
NET CASH FLOW USED FOR INVESTING ACTIVITIES
 Additions to plant and equipment                           (45)        (72)
 Proceeds from the sale of assets or affiliates             -           4
           Net cash flow used for investing activities      (45)        (68)
NET CASH FLOW PROVIDED BY FINANCING ACTIVITIES
 Proceeds from senior revolving credit and receivables      558         626
 securitization facilities
 Payments on senior revolving credit and receivables        (331)       (352)
 securitization facilities
 Payments on long-term debt                                 -           (2)
 Net increase (decrease) in short-term debt                 5           (6)
 Purchases of treasury stock                                (8)         (5)
 Other                                                      8           5
           Net cash flow provided by financing              232         266
           activities
Effect of exchange rate changes on cash                     (1)         1
Net increase in cash and cash equivalents                   7           6
Cash and cash equivalents at beginning of period            55          52
CASH AND CASH EQUIVALENTS AT END OF PERIOD                $ 62       $  58





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
                                                  Mar. 31,
                                                  2013             2012
Net sales                                         $     459        $    476
       % change from prior                          -4%             -3%
      year
EBIT                                              $     9          $    23
       EBIT as a % of net                           2%              5%
      sales
Depreciation and amortization                     $     32         $    30
expense



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 millions):



                                            Three Months Ended
                                            Mar. 31,
                                            2013       2012
Net sales
     Insulation                             $  330     $  331
     Roofing                                   607        588
Total Building Materials                    $  937     $  919
      % change from prior year          2%         17%
EBIT
     Insulation                             $  (21)    $  (34)
     Roofing                                   119        83
Total Building Materials                    $  98      $  49
      EBIT as a % of net sales          10%        5%
Depreciation and amortization expense
     Insulation                             $  26      $  25
     Roofing                                   10         9
Total Building Materials                    $  36      $  34





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
                                                 Mar. 31,
                                                 2013              2012
Charges related to cost reduction actions        $     (9)         $    (55)
and related items
Losses related to Hurricane Sandy                      (11)             -
General corporate expense and other                    (30)             (29)
EBIT                                             $     (50)        $    (84)
Depreciation and amortization                    $     10          $    25





SOURCE Owens Corning

Website: http://www.owenscorning.com
Contact: Media Inquiries: Matt Schroder, 419.248.8987; Investor Inquiries:
Thierry Denis, 419.248.5748
 
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