Dallas, Texas 04/24/2014 (FINANCIALSTRENDS) – Owens Corning (NYSE:OC) reported first quarter 2014 consolidated net sales of $1.28 billion. Lower than expected roofing volumes were a drag on the results, and the net earnings remained flat with no change year-on-year for the quarter.
The OC Quarterly Earnings Report
The $1.28 billion in revenue generated for the quarter was lower than the $1.35 billion the company managed in the same quarter last year. Adjusted earnings for the first quarter in 2014 were pegged at $35 million, or $0.29 per diluted share. This is essentially identical to the first quarter adjusted earnings last year of $35 million, or $0.29 per diluted share.
Net earnings for the quarter this year were $120 million, or $1.01 per share. The net earnings for the first quarter last year were $22 million, or $0.18 per diluted share. The huge difference is mostly because of tax-related items including $74 million in adjustments for removing tax reserve reversals.
The company also showed a one-time $45 million net gain in the first quarter related to the sale of the plant in Hangzhou, China, although it had previously announced.
The best news out of the whole report was that on April 3, 2014, Owens Corning paid its first cash dividend to shareholders since 2000.
Statement by Owens Corning Chairman and CEO Mike Thaman
“Our first-quarter 2014 performance was led by continued improvement in Insulation and Composites, which offset the impact of weaker-than-expected roofing volumes,” said Chairman and Chief Executive Officer Mike Thaman. “We anticipate the performance of our Roofing business to improve throughout the balance of the year. The current outlook for our markets and the momentum in our Insulation and Composites businesses support another strong year of earnings growth.”
Full-Year 2014 Outlook For OC
Based on the improving U.S. housing market and global growth, Owens Corning expects to deliver $500 million in adjusted EBIT for 2014. As the CEO noted, their roofing business is expected to deliver another strong year due to market growth in new construction and re-roofing demand.