Insulation industry news from Global Insulation
US: Owens Corning is planning to close its fibreglass insulation plant at Eloy in Arizona due to poor residential housing market conditions. The Casa Grande Dispatch newspaper reports that the company’s decision was announced at a local council meeting in late July 2023. The Eloy plant was in operation for 15 years before being previously closed in 2010. However, in late 2021 the company announced plans to restart production at the unit. The closure will entail 36 job losses.
US: Sales revenue from Huntsman’s polyurethane division fell by 27% year-on-year to US$2.00bn in the first half of 2023 from US$2.74bn in the same period in 2022. Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) dropped by 66% to US$154m from US$453m. For the second quarter of 2023 the company attributed falling revenue to lower sales volumes, decreased average methyl diphenyl diisocyanate (MDI) prices and negative currency exchange effects. This trend was partially offset by higher equity earnings from a minority-owned joint venture in China and cost savings achieved from a cost saving plan.
Overall the group’s sales and earnings fell in the first half of 2023 with declines in sales and earnings reported across all main divisions. However, the company noted that it saw, “demand fundamentals in many of our core markets stabilise” in the second quarter of 2023.
Huntsman produces a range of chemicals including polyisocyanurate (PIR) and polyurethane (PUR) building insulation products.
US: Installed Building Products’ revenue grew by 7% year-on-year to US$1.35bn in the first half of 2023 from US$1.26bn in the same period in 2022. Its net income rose by 18% to US$111m from US$93.7m. Jeff Edwards, chair and chief executive officer, said that company “focused on prioritising profitability over volume.” He added “Despite softer volume trends in our single-family end market, the effort of our employees in the field across end markets translated into record second-quarter revenue, net income and earnings per share.”
