US: Owens Corning (OC) has reported that its consolidated net sales increased by 9% to US$1.35bn in the first quarter of 2012, compared with US$1.24bn in the same period of 2011. Its first quarter adjusted earnings, (based on the company's expected full-year effective tax rate of 25%), were US$11m compared with US$27m in the same period of 2011. OC reported a net loss of US$46m compared with net earnings of US$24m in the first quarter of 2011.
"OC delivered results in line with our expectations for the quarter," said chairman and CEO Mike Thaman. "We continue to be confident that we will grow our adjusted earnings before interest and tax (EBIT) in 2012."
Although there continues to be uncertainty in the macro-economic outlook, OC expects to grow adjusted EBIT in 2012 based on an improving US housing market and continued growth in global industrial production.The company said that, despite weakness in the European glass fibre reinforcements market, it believes that global glass reinforcements demand will continue to grow in 2012.
Meanwhile depreciation and amortisation expenses are expected to be as much as US$320m in 2012, excluding the impact of the restructuring actions in Europe. OC expects its capital expenditure to be about US$350m in 2012.
The company also announced that its board of directors has authorised the company to repurchase up to 10 million additional shares of its outstanding common stock. Under a previously announced share repurchase programme, 3.7 million shares continue to be available for repurchase.
