Owens Corning lowers guidance
Owens Corning has lowered its earnings expectations for 2012 based on a weak selling environment for its roofing and composites. Full-year adjusted earnings before interest and taxes (EBIT) for the company are now expected to be in the range of $280 million to $310 million, with the primary uncertainty through the remainder of the year attributed to roofing volumes.
Weakness in the U.S. roofing shingle market, combined with a mid-September price increase, resulted in the company lowering its roofing revenue outlook for the full-year, now estimated to be approximately $2 billion.
In the second half of 2012, composites demand will be impacted by lower global industrial production, particularly in Europe, as well as by the weaker U.S. roofing market. In response, Owens Corning has initiated further production curtailments to bring inventories in line with previously discussed year-end targets.
The company maintains its earlier guidance of significantly narrowing losses for its insulation business in 2012. The effects of higher volumes as a result of an improving U.S. housing market, as well as continued operating leverage in the business, continue to support this outlook.
Owens Corning will announce its full third-quarter 2012 results on Oct. 24, 2012, prior to the opening of the market.