US: Owens Cornings’ net sales from its insulation business rose by 5% year-on-year to US$838m in the first half of 2017 from US$799m in the same period in 2016. However, its earnings before interest and taxation (EBIT) fell by 24% to US$34m from US$45m. The company offered no reason for its declining earnings but it did mention a ‘greater than expected’ start-up impact of a newly commissioned mineral wool plant.
Despite this the company now expects to deliver revenue growth of more than US$250m and EBIT of about US$185m. It said that the improved outlook was driven by successful pricing actions in the US residential insulation business and the benefit of its Pittsburgh Corning acquisition.
“Owens Corning built upon the performance achieved in the first quarter and delivered strong second-quarter results. Through the first half, the company produced adjusted EBIT of US$401m and continues to generate strong operating cash flow,” said chairman and chief executive officer Mike Thaman. He also said the acquisition of Pittsburgh Corning and its Foamglas product line had expanded the geographic footprint and product portfolio of the company’s insulation business.
