Global producer of glass fiber reinforcements,
), third-quarter earnings of 53 cents shot up 51.4% compared to
34 cents reported a year ago backed by higher margins in the
Roofing segment. Earnings lagged the Zacks Consensus Estimate of
64 cents by 17.2% on the back of weaker-than-expected
Revenues and Margins
Net sales went up 3.1% to $1.32 billion compared to $1.28
billion a year ago on the back of strong sales in the Insulation
segment. Revenues, however, lagged the Zacks Consensus Estimate
of $1.37 billion due to lower than expected volumes.
Gross profit increased 25.2% to $253 million backed by lower
cost of sales. Earnings Before Interest and Tax (EBIT) shot up
46.9% to $119 million backed by higher EBIT in most of the
: Net sales dipped 1% year over year to $453 million, due to
unfavorable foreign exchange. Volumes were down slightly due to
weakness in demand for roofing in North America.
Net sales went up 5% year over year to $902 million backed by
improved pricing and the acquisition of Thermafiber which boosted
sales in the Insulation materials. Volume was up in mid-teens
backed by strong volume growth in Western and Atlantic Coast
Other Financial Update
During the third quarter, Owens repurchased 1.4 million shares
of common stock for a total of $54 million.
During the quarter, Owens Corning acquired the mineral wool
commercial and industrial insulation products manufacturer,
Thermafiber Inc. The acquisition includes a 145,000 square foot
manufacturing unit located in Wabash, Indiana. The buyout
provides Owens Corning with a broad insulation portfolio of
fiberglass, foam and mineral wool insulation products.
For fiscal 2013, Owens expects EBIT to go up by $100 million.
It expectsRoofing industry shipments to be down by mid-single
digits due to lower storm activity. Insulation sales is expected
to continue on its growth trajectory in the U.S. backed by new
residential construction, improved capacity utilization and
The Composites segment is expected to remain flat year over
year in fiscal 2013. Owens expects a higher tax rate in fiscal
2013 and a corporate expense of $105 million, lower than the
previous year, due to reduction of variable incentive
Other Stocks to Consider
Owens currently carries a Zacks Rank #4 (Sell).Other stocks
doing well in the construction sector are
M/I Homes Inc.
). All the stocks carry a Zacks Rank #2 (Buy).
KB HOME (KBH): Free Stock Analysis Report
MASCO (MAS): Free Stock Analysis Report
M/I HOMES INC (MHO): Free Stock Analysis
OWENS CORNING (OC): Free Stock Analysis
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