Owens Corning (NYSE: OC) reported Q2 EPS of $0.85, $0.23 worse than the analyst estimate of $1.08. Revenue for the quarter came in at $1.6 billion versus the consensus estimate of $1.48 billion.

2017 Outlook

• The company continues to expect an environment consistent with consensus expectations for U.S. housing starts and moderate global industrial production growth.
• In Roofing, second-quarter volumes remained strong and first-half shingle shipments were up mid-single digits. The company now expects that continued growth in new construction and reroof demand will offset potential declines from storm activity, resulting in a relatively flat market for 2017.
• In Composites, the business has experienced strong volume performance during the first half of the year. The company now expects EBIT growth of about $30 million, with the improved outlook primarily driven by stronger volume expectations.
• In Insulation, the company now expects to deliver revenue growth of more than $250 million and EBIT of about $185 million. This improved outlook is driven by successful pricing actions in the U.S. residential Insulation business and the benefit of the Pittsburgh Corning acquisition, partially offset by the greater than expected start-up impact of the recently commissioned mineral wool facility.
• The company estimates an effective tax rate of 32% to 34%, and a cash tax rate of 10% to 12% on adjusted pre-tax earnings, due to the company’s $1.8 billion U.S. tax net operating loss carryforward.
• The company expects general corporate expenses to be between $135 million and $140 million in 2017. Capital additions in 2017 are expected to total approximately $385 million. Interest expense is expected to be about $110 million.
• For full-year 2017, the company expects adjusted EBIT of at least $825 million, as growth accelerates in the second half of the year.

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