US: Owens Corning has lowered its full-year 2014 earnings outlook because of continued weakness in its roofing business. In its first quarter 2014 earnings release, the company stated that it expected US$500m in adjusted earnings before income tax for the whole of 2014, but added that weakness in the roofing business added risk to the financial outlook.
The weakness continued through April - May 2014 and the company now estimates that roofing volumes for the first half of 2014 may be 20% lower than during the first half of 2013. Owens Corning expects to recover a portion of the shortfall during the second half of 2014 and has projected that full-year 2014 adjusted earnings before income tax will be greater than 2013's US$416m.
According to Owens Corning, the insulation and composites market continues to show improvement compared with 2013. Earnings growth in those two areas is expected to more than offset the poor roofing performance.
Insulation sales increased from US$330m in the first quarter of 2013 to US$355m in 2014. The company's first quarter 2014 results reported insulation sales grew by almost 8% compared with 2013, following 11 consecutive quarters of improved earnings in the insulation business.
