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21st February 2018, Toledo, OH

Owens Corning records earnings decline in 2017

In composites, the company expects continued growth in the glass fibre market, driven by global industrial production growth. Owens Corning, a leading developer, manufacturer, and marketer of insulation, roofing, and fiberglass composites, has reported full-year 2017 net earnings were US$ 289 million, versus net earnings of US$ 393 million during 2016. Adjusted earnings in 2017 were US$ 498 million, compared to US$ 419 million during 2016.

The company also reported consolidated net sales of US$ 1.6 billion in fourth-quarter 2017, compared to US$ 1.4 billion in fourth-quarter 2016, an increase of 16%. Full-year 2017 consolidated net sales were US$ 6.4 billion, versus US$ 5.7 billion in 2016. Fourth-quarter 2017 net loss attributable to Owens Corning was US$ 4 million, compared to net earnings of US$ 86 million during the comparable quarter in 2016. Fourth-quarter 2017 adjusted earnings were US$ 125 million, compared to US$ 81 million during the same period one year ago.

“Owens Corning had another great year. We were pleased by the continued momentum in our three businesses and the addition of Paroc and Foamglas to our portfolio,” said Chairman and Chief Executive Officer Mike Thaman. “In 2018, the company is again positioned to produce strong revenue and earnings growth with substantial free cash flow.”

Key achievements

Reported earnings before interest and taxes (EBIT) for fourth-quarter 2017 were US$ 150 million, up from US$ 136 million during the same period in 2016. Adjusted EBIT in fourth-quarter 2017 was US$ 215 million, up from US$ 157 million in 2016. Reported EBIT for full-year 2017 was US$ 737 million, compared with US$ 699 million during 2016. Adjusted EBIT in 2017 was US$ 855 million, up from US$ 746 million in 2016.

The company generated record operating cash flow of US$ 1.0 billion and record free cash flow of US$ 679 million in 2017. The company converted adjusted earnings to free cash flow at a rate of 136%. During 2017, Owens Corning repurchased 2.3 million shares of its common stock for US$ 142 million. As of the end of 2017, 7.5 million shares were available for repurchase under the current authorisation.

In fourth-quarter 2017, the company recorded US$ 65 million in charges excluded from adjusted EBIT, primarily related to pension risk mitigation actions, an environmental provision for a closed site and costs associated with prior decisions in the Composites business. As a result of the US tax reform legislation, the company recorded a one-time, non-cash charge of US$ 82 million, producing a loss in the fourth quarter.


In the beginning of the month, the company completed the acquisition of Paroc Group, a leading producer of mineral wool insulation in Europe, further broadening the product portfolio and expanding the geographic footprint of the Insulation business. The company issued US$ 400 million of 30-year notes at 4.4% on January 23, 2018 in association with this transaction.


The company expects an environment consistent with consensus expectations for US housing starts and global industrial production growth. In composites, the company expects continued growth in the glass fibre market, driven by global industrial production growth.

In 2018, the company expects EBIT improvement of about US$ 20 million, with the benefit of market growth and improved pricing partly offset by accelerated inflation and higher rebuild costs.

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