US: Owens Corning has reported a drop in its third quarter profit due to lower demand for roofing and composites. The insulation construction and industrial-materials company published consolidated net sales of US$1.28bn for the third quarter of 2012, compared with US$1.45bn during the same period in 2011.
Third-quarter 2012 adjusted earnings, based on the company's expected full-year effective tax rate of 25%, were US$39m compared with US$110m in the third quarter of 2011. The company reported net earnings of US$44m compared with net earnings of US$124m.
"We are disappointed in our third-quarter financial results," said chairman and chief executive officer Mike Thaman. "Despite these results, we are proud that our insulation business achieved profitability in the quarter for the first time in four years, in an improving US construction market. Roofing and Composites are experiencing challenging market conditions in the second half. We continue to focus on actions that will position these businesses for near-term improvement."
The construction and industrial-materials company warned investors earlier in October 2012 that weaker demand for roofing in the US and lower industrial production, particularly in Europe, hurt its revenue. It trimmed its full-year forecast. Owens Corning still expects adjusted earnings before interest and taxes between US$280m and US$310m for the full year of 2012.
