TOLEDO, Ohio, Oct. 24, 2012 /PRNewswire/ -- Owens Corning
(NYSE: OC) today reported consolidated net sales of $1.28 billion in the third quarter of 2012,
compared with $1.45 billion during
the same period last year.
Third-quarter 2012 adjusted earnings, based on the company's
expected full-year effective tax rate of 25 percent, were
$39 million, or $0.33 per diluted share, compared with
$110 million, or $0.90 per diluted share, during the same period
last year. The company reported net earnings of $44 million, or $0.37 per diluted share, compared with net
earnings of $124 million, or
$1.01 per diluted share, in the third
quarter of 2011. (See Tables
1, 2 and 3 for a discussion and reconciliation of these items.)
"We are disappointed in our third-quarter financial results,"
said Chairman and Chief Executive Officer Mike Thaman. "Despite these results, we
are proud that our Insulation business achieved profitability in
the quarter for the first time in four years, in an improving U.S.
construction market. Roofing and Composites are experiencing
challenging market conditions in the second half. We continue
to focus on actions that will position these businesses for
near-term improvement."
Consolidated Third-Quarter 2012 Results
- Owens Corning's safety performance in the third quarter of 2012
improved by 18 percent compared with the same period one year ago.
Through September 30, 2012, the
company's performance was consistent with its full-year 2011
result.
- Third-quarter adjusted earnings before interest and taxes
(EBIT) were $81 million in 2012,
compared with EBIT of $177 million in
the third quarter of 2011. In the third quarter of 2012, the
company had certain items that were not the result of current
operations. Before adjusting for these items, Owens Corning's
third-quarter 2012 EBIT was $59 million. (See Table 2 for a
reconciliation of these items.)
Senior Note Offering & Stock Repurchase Activity
On October 17, the company issued
a new 10-year bond of $600 million at
4.2 percent and launched a tender offer for up to $250 million of bonds maturing in 2016, and
$100 million maturing in 2019.
The new debt structure improves the company's debt maturity profile
and liquidity. In association with the tender offer, the
company expects to incur a loss on debt extinguishment of
approximately $75 million in the
fourth quarter of 2012.
During the third quarter, Owens Corning repurchased 1.1 million
shares of the company's common stock for $31
million under a previously announced share repurchase
program. As of September 30,
2012, 10 million shares remained available for repurchase
under the company's current authorization.
Outlook
The company expects full-year adjusted earnings before interest
and taxes (EBIT) in the range of $280
million to $310 million. The company's revised
adjusted EBIT expectation for the year reflects near-term weakness
in Roofing demand, higher curtailment and start-up costs in
Composites as well as softer growth in global industrial
production. In addition, the company will benefit this year
from a recovering U.S. housing market of approximately 750,000
starts.
The effects of weaker demand and further production curtailments
to reach inventory goals have led to lower margin expectations for
the Composites business in the fourth quarter. As previously
announced, the company is taking actions in this segment to balance
supply and to transform this operation into a global network of
low-delivered-cost assets. The company expects the actions to
optimize its global Composites manufacturing network to yield
approximately $60 million of cost and
productivity improvements in a modest growth environment for next
year.
In the Building Materials segment, Roofing weakness experienced
during the latter part of the third quarter is not expected to
improve for the remainder of the year. However, the company
expects the factors that have driven margins in recent years will
continue to deliver profitability in this business.
The company expects that Insulation will improve financial
performance for the remainder of the year and significantly narrow
losses in 2012 on improved U.S. housing starts and operating
leverage in the business.
Cash taxes are expected to be about $30
million in 2012, due to the company's $2.2 billion U.S. tax net operating loss carry
forward. The company estimates a long-term effective tax rate
of 25 percent to 28 percent based on the blend of effective tax
rates for its U.S. and non-U.S. operations. The effective
book tax rate for 2012 is expected to be about 25 percent on
adjusted earnings.
The company expects general corporate expenses to be less than
$100 million in 2012. General
corporate expenses include corporate staff and other activities
that support the operations. Expenses will be higher in 2012
than in 2011, primarily due to increased pension expense.
Next Earnings Announcement
Fourth-quarter and full-year 2012 results will be announced on
Wednesday, February 20, 2013.
Third-Quarter Conference Call and Presentation
Wednesday, October 24, 2012
11 a.m. Eastern Time
All Callers
Live dial-in telephone number: U.S.
1-800-561-2731 or International 1-617-614-3528
Participant passcode: 938-784-21 (Please dial in 10 minutes before
conference call start time.)
Live webcast: http://www.owenscorning.com/investors
Telephone replay available through October 31, 2012: U.S. 1-888-286-8010 or
International 1-617-801-6888
Participant passcode: 515-670-11
Replay of webcast also available at:
http://www.owenscorning.com/investors
Presentation
To view the slide presentation during the
conference call, please log on to the live webcast at:
http://www.owenscorning.com/investors
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 58 consecutive
years, Owens Corning is committed to driving sustainability by
delivering solutions, transforming markets and enhancing
lives. Celebrating its 75th anniversary in 2013, Owens
Corning is a market-leading innovator of glass-fiber technology
with sales of $5.3 billion in 2011
and about 15,000 employees in 28 countries on five
continents. 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 could cause actual results to differ materially
from those projected in these statements. Such factors
include, without limitation: economic and political conditions,
including new legislation or other governmental actions; levels of
residential and commercial construction activity; competitive
factors; pricing factors; weather conditions; our level of
indebtedness; industry and economic conditions that affect the
market and operating conditions of our customers, suppliers or
lenders; availability and cost of energy and materials;
availability and cost of credit; interest rate movements; issues
related to expansion of our production capacity; issues related to
acquisitions, divestitures and joint ventures; our ability to use
our net operating loss carry-forwards; achievement of expected
synergies, cost reductions and/or productivity improvements; issues
involving implementation of new business systems; foreign exchange
fluctuations; research and development activities; difficulties in
managing production capacity; labor disputes; 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 the date October 24,
2012, 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 will not be construed as updating or
confirming such information.
|
Table
1
Owens
Corning and Subsidiaries
Consolidated Statements of Earnings
(unaudited)
(in
millions, except per share amounts)
|
|
|
|
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
|
|
|
Sep.
30,
|
|
Sep.
30,
|
|
|
|
|
|
2012
|
|
|
2011
|
|
|
2012
|
|
|
2011
|
|
NET
SALES
|
|
$
|
1,276
|
|
$
|
1,450
|
|
$
|
4,013
|
|
$
|
4,139
|
|
COST OF
SALES
|
|
|
1,074
|
|
|
1,133
|
|
|
3,386
|
|
|
3,341
|
|
|
Gross
margin
|
|
|
202
|
|
|
317
|
|
|
627
|
|
|
798
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketing
and administrative expenses
|
|
|
115
|
|
|
119
|
|
|
380
|
|
|
395
|
|
Science
and technology expenses
|
|
|
20
|
|
|
20
|
|
|
60
|
|
|
58
|
|
Charges
related to cost reduction actions
|
|
|
-
|
|
|
-
|
|
|
36
|
|
|
-
|
|
Other
(income) expenses, net
|
|
|
8
|
|
|
1
|
|
|
19
|
|
|
(28)
|
|
|
Total
operating expenses
|
|
|
143
|
|
|
140
|
|
|
495
|
|
|
425
|
|
EARNINGS BEFORE INTEREST AND TAXES
|
|
|
59
|
|
|
177
|
|
|
132
|
|
|
373
|
|
Interest
expense, net
|
|
|
29
|
|
|
28
|
|
|
85
|
|
|
81
|
|
EARNINGS BEFORE TAXES
|
|
|
30
|
|
|
149
|
|
|
47
|
|
|
292
|
|
Less:
Income tax expense (benefit)
|
|
|
(14)
|
|
|
23
|
|
|
8
|
|
|
63
|
|
Equity in
net earnings of affiliates
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1
|
|
NET
EARNINGS
|
|
|
44
|
|
|
126
|
|
|
39
|
|
|
230
|
|
Less: Net
earnings attributable to noncontrolling interests
|
|
|
-
|
|
|
2
|
|
|
2
|
|
|
4
|
|
NET
EARNINGS ATTRIBUTABLE TO OWENS CORNING
|
|
$
|
44
|
|
$
|
124
|
|
$
|
37
|
|
$
|
226
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS
PER COMMON SHARE ATTRIBUTABLE TO
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OWENS
CORNING COMMON STOCKHOLDERS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.37
|
|
$
|
1.02
|
|
$
|
0.31
|
|
$
|
1.83
|
|
|
Diluted
|
|
$
|
0.37
|
|
$
|
1.01
|
|
$
|
0.31
|
|
$
|
1.82
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED-AVERAGE COMMON SHARES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
117.9
|
|
|
121.7
|
|
|
119.8
|
|
|
123.2
|
|
|
Diluted
|
|
|
118.8
|
|
|
122.6
|
|
|
120.6
|
|
|
124.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 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), which are related
to our European restructuring actions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
Charges
related to cost reduction actions and related items
|
$
|
(22)
|
|
$
|
-
|
|
$
|
(109)
|
|
$
|
-
|
|
Total
adjusting items
|
$
|
(22)
|
|
$
|
-
|
|
$
|
(109)
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The
reconciliation from net earnings attributable to Owens Corning to
Adjusted EBIT is shown in the table below (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
NET
EARNINGS ATTRIBUTABLE TO
|
|
|
|
|
|
|
|
|
|
|
|
|
OWENS
CORNING
|
$
|
44
|
|
$
|
124
|
|
$
|
37
|
|
$
|
226
|
|
|
Less: Net
earnings attributable to noncontrolling interests
|
|
-
|
|
|
2
|
|
|
2
|
|
|
4
|
|
NET
EARNINGS
|
|
44
|
|
|
126
|
|
|
39
|
|
|
230
|
|
Equity in
net earnings of affiliates
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1
|
|
Income tax
expense (benefit)
|
|
(14)
|
|
|
23
|
|
|
8
|
|
|
63
|
|
EARNINGS
BEFORE TAXES
|
|
30
|
|
|
149
|
|
|
47
|
|
|
292
|
|
Interest
expense, net
|
|
29
|
|
|
28
|
|
|
85
|
|
|
81
|
|
EARNINGS
BEFORE INTEREST AND TAXES
|
|
59
|
|
|
177
|
|
|
132
|
|
|
373
|
|
Less:
adjusting items from above
|
|
(22)
|
|
|
-
|
|
|
(109)
|
|
|
-
|
|
ADJUSTED
EBIT
|
$
|
81
|
|
$
|
177
|
|
$
|
241
|
|
$
|
373
|
|
Table
3
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 attributable to Owens Corning to
Adjusted Earnings and a reconciliation from diluted earnings per
share to adjusted diluted earnings per share are shown in the
tables below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
|
Nine
Months
Ended
|
|
|
|
|
|
|
|
Sep.
30,
|
|
|
Sep.
30,
|
|
|
|
|
|
|
|
2012
|
|
|
2011
|
|
|
2012
|
|
|
2011
|
|
RECONCILIATION TO ADJUSTED EARNINGS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings attributable to Owens Corning
|
|
|
$
|
44
|
|
$
|
124
|
|
$
|
37
|
|
$
|
226
|
|
|
Adjustment
to remove adjusting items net of tax
|
|
|
|
17
|
|
|
-
|
|
|
82
|
|
|
-
|
|
|
Adjustment
to tax expense to reflect pro forma tax rate*
|
|
|
|
(22)
|
|
|
(14)
|
|
|
(4)
|
|
|
(10)
|
|
ADJUSTED EARNINGS
|
|
|
$
|
39
|
|
$
|
110
|
|
$
|
115
|
|
$
|
216
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION TO ADJUSTED DILUTED EARNINGS (LOSS)
PER SHARE
|
|
ATTRIBUTABLE TO OWENS CORNING COMMON
STOCKHOLDERS
|
|
DILUTED
EARNINGS PER COMMON SHARE ATTRIBUTABLE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TO
OWENS CORNING COMMON STOCKHOLDERS
|
|
|
$
|
0.37
|
|
$
|
1.01
|
|
$
|
0.31
|
|
$
|
1.82
|
|
|
Adjustment
to remove adjusting items net of tax
|
|
|
|
0.14
|
|
|
-
|
|
|
0.68
|
|
|
-
|
|
|
Adjustment
to tax expense to reflect a pro forma tax rate*
|
|
|
|
(0.18)
|
|
|
(0.11)
|
|
|
(0.04)
|
|
|
(0.08)
|
|
ADJUSTED DILUTED EARNINGS PER SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ATTRIBUTABLE TO OWENS CORNING COMMON
STOCKHOLDERS
|
|
|
$
|
0.33
|
|
$
|
0.90
|
|
$
|
0.95
|
|
$
|
1.74
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATON TO DILUTED SHARES
OUTSTANDING
|
|
Weighted-average shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
used for
basic earnings per share
|
|
|
|
117.9
|
|
|
121.7
|
|
|
119.8
|
|
|
123.2
|
|
|
Non-vested
restricted shares
|
|
|
|
0.6
|
|
|
0.6
|
|
|
0.5
|
|
|
0.6
|
|
|
Options to
purchase common stock
|
|
|
|
0.3
|
|
|
0.3
|
|
|
0.3
|
|
|
0.4
|
|
Diluted
shares outstanding
|
|
|
|
118.8
|
|
|
122.6
|
|
|
120.6
|
|
|
124.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Pro
forma tax rates used were 25% in 2012 as this is the expected
full-year effective tax rate, and, 21% in 2011 as this was the
effective tax rate of the Company in 2011.
|
|
|
Table
4
Owens Corning and Subsidiaries
Consolidated
Balance Sheets
(unaudited)
(in
millions)
|
|
ASSETS
|
|
Sep.
30,
|
|
Dec.
31,
|
|
|
2012
|
|
2011
|
|
CURRENT
ASSETS
|
|
|
|
|
|
|
|
Cash and
cash equivalents
|
|
$
|
51
|
|
$
|
52
|
|
Receivables, less allowances of $19 at Sep. 30, 2012,
and $15 at Dec. 31, 2011
|
|
|
770
|
|
|
610
|
|
Inventories
|
|
|
793
|
|
|
795
|
|
Other
current assets
|
|
|
155
|
|
|
179
|
|
|
Total
current assets
|
|
|
1,769
|
|
|
1,636
|
|
Property,
plant and equipment, net
|
|
|
2,912
|
|
|
2,904
|
|
Goodwill
|
|
|
1,144
|
|
|
1,144
|
|
Intangible
assets
|
|
|
1,050
|
|
|
1,073
|
|
Deferred
income taxes
|
|
|
564
|
|
|
538
|
|
Other
non-current assets
|
|
|
253
|
|
|
232
|
|
TOTAL
ASSETS
|
|
$
|
7,692
|
|
$
|
7,527
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
|
|
|
Accounts
payable and accrued liabilities
|
|
$
|
867
|
|
$
|
876
|
|
Short-term
debt
|
|
|
19
|
|
|
28
|
|
Long-term
debt – current portion
|
|
|
6
|
|
|
4
|
|
|
Total
current liabilities
|
|
|
892
|
|
|
908
|
|
Long-term
debt, net of current portion
|
|
|
2,191
|
|
|
1,930
|
|
Pension
plan liability
|
|
|
420
|
|
|
435
|
|
Other
employee benefits liability
|
|
|
259
|
|
|
267
|
|
Deferred
income taxes
|
|
|
43
|
|
|
51
|
|
Other
liabilities
|
|
|
207
|
|
|
195
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
OWENS
CORNING STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Preferred
stock, par value $0.01 per share (a)
|
|
|
-
|
-
|
|
-
|
|
Common
stock, par value $0.01 per share (b)
|
|
|
1
|
|
|
1
|
|
Additional
paid in capital
|
|
|
3,917
|
|
|
3,907
|
|
Accumulated earnings
|
|
|
507
|
|
|
470
|
|
Accumulated other comprehensive deficit
|
|
|
(305)
|
|
|
(315)
|
|
Cost of
common stock in treasury (c)
|
|
|
(475)
|
|
|
(362)
|
|
|
Total
Owens Corning stockholders' equity
|
|
|
3,645
|
|
|
3,701
|
|
Noncontrolling interests
|
|
|
35
|
|
|
40
|
|
Total
equity
|
|
|
3,680
|
|
|
3,741
|
|
TOTAL
LIABILITIES AND EQUITY
|
|
$
|
7,692
|
|
$
|
7,527
|
|
|
|
|
|
|
|
|
|
|
(a)
|
10 shares
authorized; none issued or outstanding at Sep. 30, 2012, and Dec.
31, 2011
|
|
(b)
|
400 shares
authorized; 135.5 issued and 118.2 outstanding at Sep. 30, 2012;
134.4 issued and 120.9 outstanding at Dec. 31, 2011
|
|
(c)
|
17.3
shares at Sep. 30, 2012, and 13.5 shares at Dec. 31,
2011
|
|
Table
5
Owens
Corning and Subsidiaries
Consolidated Statements of Cash
Flows
(unaudited)
(in
millions)
|
|
|
|
|
|
|
|
|
Nine
Months Ended
|
|
|
|
|
|
|
|
|
Sep.
30,
|
|
|
|
|
|
|
|
|
2012
|
|
|
2011
|
|
NET CASH
FLOW PROVIDED BY OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
|
|
|
$
|
39
|
|
$
|
230
|
|
Adjustments to reconcile net earnings to cash
provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
269
|
|
|
243
|
|
|
|
Gain on
sale of businesses and fixed assets
|
|
|
|
|
(3)
|
|
|
(30)
|
|
|
|
Deferred
income taxes
|
|
|
|
|
(25)
|
|
|
29
|
|
|
|
Provision
for pension and other employee benefits liabilities
|
|
|
|
|
33
|
|
|
26
|
|
|
|
Stock-based compensation expense
|
|
|
|
|
18
|
|
|
16
|
|
|
|
Other
non-cash
|
|
|
|
|
(9)
|
|
|
(18)
|
|
Change in
working capital
|
|
|
|
|
(171)
|
|
|
(330)
|
|
Pension
fund contribution
|
|
|
|
|
(42)
|
|
|
(104)
|
|
Payments
for other employee benefits liabilities
|
|
|
|
|
(17)
|
|
|
(17)
|
|
Other
|
|
|
|
|
1
|
|
|
14
|
|
|
|
Net cash
flow provided by operating activities
|
|
|
|
|
93
|
|
|
59
|
|
NET CASH
FLOW USED FOR INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
Additions
to plant and equipment
|
|
|
|
|
(235)
|
|
|
(303)
|
|
Investment
in subsidiaries and affiliates, net of cash acquired
|
|
|
|
|
-
|
|
|
(84)
|
|
Proceeds
from the sale of assets or affiliates
|
|
|
|
|
12
|
|
|
81
|
|
|
|
Net cash
flow used for investing activities
|
|
|
|
|
(223)
|
|
|
(306)
|
|
NET CASH
FLOW PROVIDED BY FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
Proceeds
from senior revolving credit and receivables securitization
facilities
|
|
|
|
|
1,205
|
|
|
1,007
|
|
Payments
on senior revolving credit and receivables securitization
facilities
|
|
|
|
|
(929)
|
|
|
(629)
|
|
Proceeds
from long-term debt
|
|
|
|
|
-
|
|
|
6
|
|
Payments
on long-term debt
|
|
|
|
|
(13)
|
|
|
(10)
|
|
Net
increase (decrease) in short-term debt
|
|
|
|
|
(9)
|
|
|
17
|
|
Purchases
of noncontrolling interest
|
|
|
|
|
(22)
|
|
|
-
|
|
Purchases
of treasury stock
|
|
|
|
|
(113)
|
|
|
(138)
|
|
Other
|
|
|
|
|
9
|
|
|
12
|
|
|
|
Net cash
flow provided by financing activities
|
|
|
|
|
128
|
|
|
265
|
|
Effect of
exchange rate changes on cash
|
|
|
|
|
1
|
|
|
(20)
|
|
Net
decrease in cash and cash equivalents
|
|
|
|
|
(1)
|
|
|
(2)
|
|
Cash and
cash equivalents at beginning of period
|
|
|
|
|
52
|
|
|
52
|
|
CASH
AND CASH EQUIVALENTS AT END OF PERIOD
|
|
|
|
$
|
51
|
|
$
|
50
|
|
Table
6
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 the Composites segment (in
millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
|
Sep.
30,
|
|
Sep.
30,
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
Net
sales
|
$
|
459
|
|
$
|
496
|
|
$
|
1,433
|
|
$
|
1,517
|
|
%
change from prior year
|
|
-7%
|
|
|
4%
|
|
|
-6%
|
|
|
6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT
|
$
|
11
|
|
$
|
49
|
|
$
|
68
|
|
$
|
152
|
|
EBIT as
a % of net sales
|
|
2%
|
|
|
10%
|
|
|
5%
|
|
|
10%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
expense
|
$
|
30
|
|
$
|
31
|
|
$
|
91
|
|
$
|
97
|
|
Building Materials
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The table
below provides a summary of net sales, EBIT and depreciation and
amortization expense for the Building Materials segment and our
businesses within this segment (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
|
Sep.
30,
|
|
Sep.
30,
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
Net
sales
|
|
|
|
|
|
|
|
|
|
|
|
|
Insulation
|
$
|
384
|
|
$
|
365
|
|
$
|
1,055
|
|
$
|
981
|
|
Roofing
|
|
471
|
|
|
644
|
|
|
1,664
|
|
|
1,785
|
|
Total
Building Materials
|
$
|
855
|
|
$
|
1,009
|
|
$
|
2,719
|
|
$
|
2,766
|
|
% change from prior
year
|
-15%
|
|
36%
|
|
-2%
|
|
10%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT
|
|
|
|
|
|
|
|
|
|
|
|
|
Insulation
|
$
|
3
|
|
$
|
(12)
|
|
$
|
(47)
|
|
$
|
(97)
|
|
Roofing
|
|
83
|
|
|
156
|
|
|
289
|
|
|
374
|
|
Total
Building Materials
|
$
|
86
|
|
$
|
144
|
|
$
|
242
|
|
$
|
277
|
|
EBIT as a % of net
sales
|
10%
|
|
14%
|
|
9%
|
|
10%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
Insulation
|
$
|
28
|
|
$
|
30
|
|
$
|
80
|
|
$
|
89
|
|
Roofing
|
|
10
|
|
|
10
|
|
|
28
|
|
|
31
|
|
Total
Building Materials
|
$
|
38
|
|
$
|
40
|
|
$
|
108
|
|
$
|
120
|
|
Table
7
Owens
Corning and Subsidiaries
Corporate, Other and Eliminations
(unaudited)
|
|
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
|
|
Nine
Months Ended
|
|
|
Sep.
30,
|
|
Sep.
30,
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
Charges
related to cost reduction actions and related items
|
$
|
(22)
|
|
$
|
-
|
|
$
|
(109)
|
|
$
|
(17)
|
|
Gain on
sale of Capivari, Brazil, facility
|
|
-
|
|
|
-
|
|
|
-
|
|
|
16
|
|
General
corporate expense and other
|
|
(16)
|
|
|
(16)
|
|
|
(69)
|
|
|
(55)
|
|
EBIT
|
$
|
(38)
|
|
$
|
(16)
|
|
$
|
(178)
|
|
$
|
(56)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
$
|
21
|
|
$
|
7
|
|
$
|
70
|
|
$
|
26
|
SOURCE Owens Corning