Owens Corning (OC) Tops Q3 EPS by 15c

Owens Corning (NYSE: OC) reported Q3 EPS of $0.63, $0.15 better than the analyst estimate of $0.48. Revenue for the quarter came in at $1.38 billion versus the consensus estimate of $1.39 billion.

Outlook

The company previously disclosed that the Insulation business would return 50 percent operating leverage through the recovery and produce $100 million or more of EBIT in an environment of one million U.S. housing starts. For the year, the business is expected to generate a full-year result consistent with this guidance.

The Composites business continues to benefit from stable global economic growth, improved operating performance and pricing. The company now expects 2014 EBIT improvement of about $40 million, largely driven by higher pricing.

In Roofing, the company now anticipates that the second-half and full-year roofing market will be down from prior year. Operating margins in 2014 are expected to be below the company's guidance of average operating margins of mid-teens or higher.

Corporate expenses are now expected to be about $80 million. Third-quarter corporate expenses were impacted by reduced performance-based compensation, strong cost controls, and a $6 million gain associated with a Brazilian energy contract that is expected to reverse in the fourth quarter.

Capital expenditures in 2014 are expected to total approximately $370 million.

The company expects an adjusted effective tax rate of 28 percent to 30 percent for 2014. The cash taxes are now expected to be about 10 percent, at the low end of the company's previously disclosed range of 10 percent to 12 percent.

The company had previously guided that it expected full-year adjusted EBIT to grow versus 2013. Continued weakness of roofing market shipments in the second half creates $15 million of downside risk versus last year's adjusted EBIT performance of $416 million.

For earnings history and earnings-related data on Owens Corning (OC) click here.

You May Also Be Interested In

• Iridium Communications (IRDM) Reports In-Line Q1 EPS; offers outlook
• Intelligent Bio Solutions (INBS) Reports Prelim Q3 Results
• S&T Bancorp (STBA) Tops Q1 EPS by 3c