Owens Corning Reports Fourth-Quarter and Full-Year 2013 Results

       Owens Corning Reports Fourth-Quarter and Full-Year 2013 Results

Full-Year Adjusted EBIT Grew by More Than 40 Percent; Company Initiates
Quarterly Dividend

- Grew adjusted EPS by nearly 70 percent; all three businesses improved
performance

- Roofing delivered 20 percent margins

- Insulation returned to profitability

- Composites improved full-year performance on strong fourth-quarter execution

- Momentum in our businesses and current outlook for our end markets support
$500 million in adjusted EBIT in 2014

PR Newswire

TOLEDO, Ohio, Feb. 12, 2014

TOLEDO, Ohio, Feb. 12, 2014 /PRNewswire/ --Owens Corning (NYSE: OC) today
reported consolidated net sales of $5.3 billion in 2013, up from net sales of
$5.2 billion in 2012.

Full-year 2013 adjusted earnings were $221 million, or $1.86 per diluted share
compared to adjusted earnings of $131 million, or $1.10 per diluted share, in
2012. Net earnings in 2013 were $204 million, or $1.71 per share, compared to
net loss of $19 million, or $0.16 per diluted share last year.

Fourth-quarter 2013 adjusted earnings were $52 million, or $0.44 per diluted
share, compared with $13 million, or $0.11 per diluted share, during the same
period one year ago. The company reported net earnings of $82 million, or
$0.69 per diluted share, in the fourth quarter of 2013, compared with a net
loss of $56 million, or $0.47 per diluted share, in 2012. (See Table 6 for a
discussion and reconciliation of these items.)

"In 2013, our insulation business returned to profitability. This was an
important achievement for our company," said Chairman and Chief Executive
Officer Mike Thaman. "We are pleased to establish a quarterly dividend as an
additional mechanism to return value to our shareholders.

"All three businesses improved in 2013, benefitting from a stable and growing
global economy and a recovering U.S. housing market," Thaman added. "We
expect similar growth in 2014 and we are working to maintain the momentum we
established last year."

The decision to declare a dividend conveys the confidence of the Board of
Directors in the company's long-term financial outlook and cash flow
generation. The company will make an initial quarterly payment of 16 centsper
common share on April 3, 2014, to shareholders of record as of March 14, 2014.

Consolidated Fourth-Quarter and Full-Year 2013 Results

  oOwens Corning maintained a very high level of safety performance in 2013.
    The company had 88 percent fewer injuries than the average manufacturing
    company when measured against the rates published by the U.S. Department
    of Labor.
  oAdjusted earnings before interest and taxes (EBIT) in the fourth quarter
    of 2013 was $96 million, compared with $52 million in 2012. EBIT for the
    fourth quarter was $104 million, compared with $16 million during the same
    period in 2012 (see Table 2).
  oFull-year adjusted EBIT was $416 million in 2013, compared with adjusted
    EBIT of $293 million in 2012. Full-year EBIT in 2013 was $385 million,
    compared to $148 million in 2012. (See Table 2 for a reconciliation of
    these items).

Outlook

In 2014, the company expects to deliver $500 million in adjusted EBIT based on
our current outlook for an improving U.S. housing market and moderate global
growth.

We expect the Roofing business to deliver another strong year in 2014 and
anticipate that the market will grow on new construction with flat to
potentially improving re-roofing demand.

Insulation should continue to benefit from growth in U.S. residential new
construction, improved pricing and operating leverage.

In Composites, the company expects recovering market conditions to drive price
improvement of $20 million to $30 million. Pricing is expected to be the
primary driver of EBIT growth in 2014.

The company estimates a long-term effective tax rate of 28 percent to 30
percent, and a long-term effective cash tax rate of 10 percent to 12 percent
on adjusted pre-tax earnings, due to the company's $2.2 billion U.S. tax net
operating loss carryforward. The effective book tax rate for 2014 on adjusted
earnings is expected to be within the long-term range.

The company expects general corporate expenses to be $120 million to $130
million in 2014. Capital expenditures in 2014 are expected to total
approximately $400 million, including an estimated $65 million for the start
of construction of a non-woven facility.

The cash dividend to be paid in April will mark the company's first such
payment since 2000. Future dividend declarations will be made at the
discretion of the Board of Directors and will be based on such factors as the
company's earnings, financial condition, cash requirements, future prospects
and other factors.

Next Earnings Announcement

First-quarter 2014 results will be announced on Wednesday, April 23, 2014.

Conference Call and Presentation

Wednesday, February 12, 2014
11 a.m. Eastern Time

All Callers
Live dial-in telephone number: U.S. and Canada 1.877.201.0168 or international
+1.647.788.4901.
Entry number: 354-170-30 (Please dial in 10-15 minutes before conference call
start time)

Live webcast: http://investor.owenscorning.com/investor-relations/

Telephone replay available through Feb. 19, 2014. For U.S. and Canada, call
1.855.859.2056
or international +1.404.537.3406. Conference replay number: 354-170-30

Replay of webcast also available until Feb. 12, 2015
at:http://investor.owenscorning.com/investor-relations/ 

Presentation
To view the slide presentation during the conference call, please log on to
the live webcast at:
http://investor.owenscorning.com/investor-relations/

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 59 consecutive
years, Owens Corning is committed to driving sustainability by delivering
solutions, transforming markets and enhancing lives. In business for more than
75 years, Owens Corning is a market-leading innovator of glass-fiber
technology with sales of $5.3 billion in 2013 and about 15,000 employees in 27
countries. 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 may cause actual results to differ
materially from those projected in these statements. Such factors include,
without limitation: economic and political conditions, including; levels of
residential and commercial construction activity; competitive factors; levels
of global industrial production; relationships with key customers;
difficulties in managing production capacity; industry and economic conditions
that affect the market and operating conditions of our customers, suppliers or
lenders; availability and cost of credit; our level of indebtedness; weather
conditions; pricing factors; availability and cost of energy and raw
materials; issues involving implementation of new business systems; new
legislation or other governmental actions; our ability to use our net
operating loss carry-forwards; research and development activities; foreign
exchange fluctuations; interest rate movements; labor disputes; issues related
to acquisitions, divestitures and joint ventures; uninsured losses;
achievement of expected synergies, cost reductions and/or productivity
improvements; defined benefit plan funding obligations; 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 February 12, 2014,
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 should not be construed as updating or
confirming such information.

Owens Corning Investor Relations News

Table 1

Owens Corning and Subsidiaries

Consolidated Statements of Earnings (Loss)

(unaudited)

(in millions, except per share amounts)
                              Three Months Ended        Twelve Months Ended
                              Dec. 31,                  Dec. 31,
                                  2013        2012          2013        2012
NET SALES                     $   1,278    $  1,159     $   5,295     $ 5,172
COST OF SALES                     1,045       989           4,329       4,375
  Gross margin          233         170           966         797
OPERATING EXPENSES
 Marketing and               135         129           530         509
administrative expenses
 Science and                 20          19            77          79
technology expenses
 Charges related to          -           15            8           51
cost reduction actions
 Other expenses              (26)        (9)           (34)        10
(income), net
  Total operating       129         154           581         649
expenses
EARNINGS BEFORE INTEREST          104         16            385         148
AND TAXES
Interest expense, net             25          29            112         114
Loss on extinguishment of         -           74            -           74
debt
EARNINGS (LOSS) BEFORE            79          (87)          273         (40)
TAXES
Less: Income tax expense          (3)         (36)          68          (28)
(benefit)
Equity in net earnings of         -           (4)           -           (4)
affiliates
NET EARNINGS (LOSS)               82          (55)          205         (16)
Less: Net earnings
attributable to                   -           1             1           3
noncontrolling interests
NET EARNINGS (LOSS)
ATTRIBUTABLE TO OWENS         $   82       $  (56)      $   204       $ (19)

CORNING
BASIC EARNINGS (LOSS) PER
COMMON SHARE
 ATTRIBUTABLE TO OWENS
CORNING COMMON                $   0.70     $  (0.47)    $   1.73      $ (0.16)

 STOCKHOLDERS
DILUTED EARNINGS (LOSS) PER
COMMON SHARE
 ATTRIBUTABLE TO OWENS
CORNING COMMON
 STOCKHOLDERS            $   0.69     $  (0.47)    $   1.71      $ (0.16)
WEIGHTED AVERAGE COMMON
SHARES
  Basic                 117.6       118.0         118.2       119.4
  Diluted               118.5       118.0         119.1       119.4
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)
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       Twelve Months Ended
                                  Dec. 31,                 Dec. 31,
                                  2013          2012       2013       2012
Charges related to cost reduction $   (3)       $   (27)   $  (26)    $  (136)
actions and related items
Net gain (loss) related to
Hurricane Sandy insurance             31            (9)       15         (9)
activity
Accelerated depreciation related
to a change in the useful life
 of assets in Cordele,           (20)          -         (20)       -
Georgia facility
 Total adjusting items       $   8         $   (36)   $  (31)    $  (145)
The reconciliation from net earnings 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,
                                  2013          2012       2013       2012
NET EARNINGS (LOSS) ATTRIBUTABLE  $   82        $   (56)   $  204     $  (19)
TO OWENS CORNING
 Less: Net earnings
attributable to noncontrolling        -             1         1          3
interests
NET EARNINGS (LOSS)                   82            (55)      205        (16)
 Equity in net earnings of       -             (4)       -          (4)
affiliates
 Income tax expense              (3)           (36)      68         (28)
(benefit)
EARNINGS (LOSS) BEFORE TAXES          79            (87)      273        (40)
 Interest expense, net           25            29        112        114
 Loss on extinguishment of       -             74        -          74
debt
EARNINGS BEFORE INTEREST AND          104           16        385        148
TAXES
 Less: adjusting items from      8             (36)      (31)       (145)
above
ADJUSTED EBIT                     $   96        $   52     $  416     $  293



Table 3

Owens Corning and Subsidiaries

Consolidated Statements of Cash Flows

(unaudited)

(in millions)
                                                 Twelve Months Ended
                                                 Dec. 31,
                                                 2013       2012       2011
NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES
  Net earnings (loss)                          $ 205      $ (16)     $ 281
  Adjustments to reconcile net earnings (loss)
  to cash provided by
       operating activities:
           Depreciation and amortization         332        349        318
           Gain on sale of assets or             (6)        (17)       (30)
           affiliates
           Proceeds from Hurricane Sandy         (58)       (20)       -
           insurance claims
           Deferred income taxes                 54         (59)       55
           Provision for pension and other       23         36         36
           employee benefits liabilities
           Stock-based compensation expense      28         24         21
           Other non-cash                        (18)       (14)       (22)
           Loss on extinguishment of debt        -          74         -
  Change in working capital accounts:
           Changes in receivables, net           (77)       24         (48)
           Changes in inventories                (27)       (4)        (179)
           Changes in accounts payable and       46         23         (41)
           accrued liabilities
           Changes in other current assets       4          (39)       (35)
           Other                                 -          2          41
  Pension fund contribution                      (39)       (50)       (117)
  Payments for other employee benefits           (22)       (22)       (24)
  liabilities
  Other                                          (27)       39         33
           Net cash flow provided by operating   418        330        289
           activities
NET CASH FLOW USED FOR INVESTING ACTIVITIES
  Additions to plant and equipment (including    (353)      (332)      (442)
  alloy)
  Proceeds from the sale of assets (including    16         59         81
  alloy) or affiliates
  Investment in subsidiaries and affiliates,     (62)       -          (84)
  net of cash acquired
  Proceeds from Hurricane Sandy insurance        58         20         -
  claims
  Deposit related to sale of Hangzhou, China     34         -          -
  plant
           Net cash flow used for investing      (307)      (253)      (445)
           activities
NET CASH FLOW PROVIDED BY (USED FOR) FINANCING
ACTIVITIES
  Proceeds from senior revolving credit and      1,063      1,877      1,912
  receivables securitization facilities
  Payments on senior revolving credit and        (1,103)    (1,957)    (1,630)
  receivables securitization facilities
  Proceeds from long-term debt                   -          599        6
  Payments on long-term debt                     (2)        (441)      (10)
  Purchase of noncontrolling interest            -          (22)       -
  Net increase (decrease) in short-term debt     (4)        (23)       26
  Purchases of treasury stock                    (63)       (113)      (138)
  Other                                          2          4          8
           Net cash flow provided by (used       (107)      (76)       174
           for) financing activities
Effect of exchange rate changes on cash          (2)        2          (18)
Net increase in cash and cash equivalents        2          3          -
Cash and cash equivalents at beginning of        55         52         52
period

                                               $ 57       $ 55       $ 52
CASH AND CASH EQUIVALENTS AT END OF PERIOD
DISCLOSURE OF CASH FLOW INFORMATION
  Cash paid during the year for income taxes   $ 29       $ 30       $ 24
  Cash paid during the year for interest       $ 126      $ 122      $ 111



Table 4

Owens Corning and Subsidiaries

Consolidated Balance Sheets

(unaudited)

(in millions)
                                            Dec. 31,             Dec. 31,
ASSETS                                      2013                 2012
CURRENT ASSETS
    Cash and cash equivalents               $     57             $    55
    Receivables, less allowances of
    $14 at Dec. 31, 2013 and $17 at               683                 600
    Dec. 31, 2012
    Inventories                                   810                 786
    Assets held for sale - current                29                  -
    Other current assets                          269                 176
            Total current assets                  1,848               1,617
Property, plant and equipment, net                2,932               2,903
Goodwill                                          1,166               1,143
Intangible assets                                 1,040               1,045
Deferred income taxes                             436                 604
Other non-current assets                          225                 256
TOTAL ASSETS                                $     7,647          $    7,568
LIABILITIES AND EQUITY
CURRENT LIABILITIES
    Accounts payable and accrued            $     988            $    907
    liabilities
    Short-term debt                               1                   5
    Long-term debt – current portion              3                   4
            Total current liabilities             992                 916
Long-term debt, net of current portion            2,024               2,076
Pension plan liability                            336                 480
Other employee benefits liability                 242                 274
Deferred income taxes                             23                  38
Other liabilities                                 200                 209
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                    3,938               3,925
    Accumulated earnings                          655                 451
    Accumulated other comprehensive               (297)               (364)
    deficit
    Cost of common stock in treasury              (504)               (475)
    (c)
            Total Owens Corning                   3,793               3,538
            stockholders' equity
    Noncontrolling interests                      37                  37
Total equity                                      3,830               3,575
TOTAL LIABILITIES AND EQUITY                $     7,647          $    7,568
(a) 10 shares authorized; none issued or outstanding at Dec. 31, 2013 and Dec.
    31, 2012
(b) 400 shares authorized; 135.5 issued and 117.8 outstanding at Dec. 31,
    2013; 135.6 issued and 118.3 outstanding at Dec. 31, 2012
(c) 17.7 shares at Dec. 31, 2013 and 17.3 shares at Dec. 31, 2012



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,
                            2013           2012        2013           2012
Net sales                   $    461       $   426     $   1,845      $  1,859
 % change from        8%            -7%         -1%           -6%
prior year
EBIT                        $    36        $   23      $   98         $  91
 EBIT as a % of       8%            5%          5%            5%
net sales
Depreciation and            $    31        $   32      $   130        $  123
amortization 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.
                            Three Months Ended         Twelve Months Ended
                            Dec. 31,                   Dec. 31,
                            2013           2012        2013           2012
Net sales
 Insulation            $    466       $   413     $   1,642      $  1,468
 Roofing                    381           350         1,967         2,014
Total Building Materials    $    847       $   763     $   3,609      $  3,482
 % change from   11%            -1%         4%             -2%
prior year
EBIT
 Insulation            $    39        $   9       $   40         $  (38)
 Roofing                    55            42          386           331
Total Building Materials    $    94        $   51      $   426        $  293
 EBIT as a % of  11%            7%          12%            8%
net sales
Depreciation and
amortization expense
 Insulation            $    25        $   25      $   104        $  105
 Roofing                    10            10          38            38
Total Building Materials    $    35        $   35      $   142        $  143
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,
                            2013           2012        2013           2012
Charges related to cost
reduction actions and       $    (3)       $   (27)    $   (26)       $  (136)
related items
Net gain (loss) related to
Hurricane Sandy insurance        31            (9)         15            (9)
activity
Accelerated depreciation
related to a change in the
useful life
 of assets in Cordele,      (20)          -           (20)          -
Georgia facility
General corporate expense        (34)          (22)        (108)         (91)
EBIT                        $    (26)      $   (58)    $   (139)      $  (236)
Depreciation and            $    31        $   13      $   60         $  83
amortization



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     Three Months       Three Months Ended  Twelve Months
                                     Ended            Ended                                  Ended
                 March 31,          June 30,        September 30,     December 31,       December 31,
                   2013      2012      2013     2012    2013     2012      2013      2012      2013     2012
RECONCILIATION
TO ADJUSTED
EARNINGS
Net earnings
(loss)           $ 22      $ (46)    $ 49     $ 39    $ 51     $ 44      $ 82      $ (56)    $ 204    $ (19)
attributable to
Owens Corning

Adjustment to      15        43        4        23      9        16        (11)      68        17       150
remove adjusting
items net of tax

Adjustment to
tax expense to     (2)       14        15       5       6        (20)      (19)      1         -        -
reflect pro
forma tax rate*
ADJUSTED         $ 35      $ 11      $ 68     $ 67    $ 66     $ 40      $ 52      $ 13      $ 221    $ 131
EARNINGS
RECONCILIATION TO ADJUSTED DILUTED
 EARNINGS PER SHARE ATTRIBUTABLE TO
 OWENS CORNING COMMON STOCKHOLDERS
DILUTED EARNINGS
PER COMMON
SHARE

ATTRIBUTABLE TO
OWENS CORNING
 COMMON     $ 0.18    $ (0.38)  $ 0.41   $ 0.32  $ 0.43   $ 0.37    $ 0.69    $ (0.47)  $ 1.71   $ (0.16)
STOCKHOLDERS

Adjustment to      0.13      0.36      0.03     0.19    0.08     0.13      (0.09)    0.58      0.15     1.26
remove adjusting
items net of tax

Adjustment to
tax expense to     (0.02)    0.11      0.13     0.04    0.05     (0.16)    (0.16)    -         -        -
reflect pro
forma tax rate*
ADJUSTED DILUTED
EARNINGS PER
SHARE
ATTRIBUTABLE
 TO OWENS
CORNING COMMON   $ 0.29    $ 0.09    $ 0.56   $ 0.55  $ 0.56   $ 0.34    $ 0.44    $ 0.11    $ 1.86   $ 1.10
STOCKHOLDERS
RECONCILIATION TO DILUTED SHARES OUTSTANDING
Weighted-average
shares
outstanding used
for basic
earnings per       118.5     121.1     119.1    120.8   118.0    117.9     117.6     118.0     118.2    119.4
share

Non-vested         0.6       -         0.7      0.4     0.4      0.6       0.5       -         0.4      -
restricted
shares

Options to         0.5       -         0.6      0.3     0.4      0.3       0.4       -         0.5      -
purchase common
stock
Diluted shares     119.6     121.1     120.4    121.5   118.8    118.8     118.5     118.0     119.1    119.4
outstanding
*In 2013 and 2012, the quarterly tax expense was adjusted to reflect the actual full year adjusted effective
tax rate of 27 percent and 23 percent, respectively.





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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