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6th November 2018, Toledo, OH

Owens Corning reports significant commercial progress

Owens Corning, a manufacturer of insulation, roofing, and fiberglass composites, has reported consolidated net sales of US$ 1.8 billion in third-quarter 2018, compared with net sales of US$ 1.7 billion in third-quarter 2017, an increase of 7%.

Third-quarter 2018 net earnings attributable to Owens Corning were US$ 161 million, compared with US$ 96 million during the comparable quarter in 2017. Third-quarter 2018 adjusted earnings were US$ 171 million, compared with US$ 141 million during the same period one year ago. Reported earnings before interest and taxes (EBIT) for third-quarter 2018 were US$ 259 million. Adjusted EBIT in third-quarter 2018 was US$ 267 million. Composites generated EBIT in line with prior year, and margins of 13%.

Owens Corning develops, manufactures, and markets insulation, roofing, and fiberglass composites. © Owens Corning

“The company executed well in the quarter with improved operating performance and significant commercial progress, particularly related to pricing actions and roofing market share. Adjusted EBIT for the quarter improved to a record level despite lower market volumes and persistent inflation,” said Chairman and Chief Executive Officer Mike Thaman.

“Weaker than expected market conditions across all three businesses, which impacted third-quarter results, are expected to continue during the fourth-quarter. As a result, we have lowered our 2018 outlook and now expect adjusted EBIT to be in line with last year. Looking forward, we believe continued strong execution positions the company, and all three businesses, for EBIT growth in 2019.”

The company continues to expect an environment consistent with consensus expectations for US housing starts and global industrial production growth. In Composites, the company expects growth in the glass fibre market, driven by global industrial production growth. However, continued inflation as well as lower than expected volumes in the US roofing market, Europe, and India have reduced the EBIT expectation to approximately US$ 260 million.

In 2018, the company continues to expect strong conversion of adjusted earnings into free cash flow, although it will now be less than the company’s target of about 100%. The company expects 2018 adjusted EBIT in line with last year’s performance of US$ 855 million, compared with a previously estimated range of US$ 925 million to US$ 975 million.

Owens Corning develops, manufactures, and markets insulation, roofing, and fiberglass composites. The company’s market-leading businesses use their deep expertise in materials, manufacturing and building science to develop products and systems that save energy and improve comfort in commercial and residential buildings. Through its glass reinforcements business, the company makes thousands of products lighter, stronger and more durable.

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