Insulation industry news from Global Insulation
US: Owens Corning has signed an agreement to acquire Pittsburgh Corning, a producer of cellular glass insulation systems for commercial and industrial markets. Upon closing, the company will pay approximately US$560m in cash, on a cash free and debt free basis. The transaction, which is subject to regulatory approvals, is anticipated to close in the third quarter of 2017.
“The acquisition of Pittsburgh Corning will further expand Owens Corning’s commercial and industrial product offering and grow our presence in Europe and Asia,” said Julian Francis, president of Owens Corning’s Insulation Business. He added that the purchase will build Owen Corning’s core glass technologies.
Pittsburgh Corning employs over 1100 people in 17 countries. It operates facilities in the US, Belgium, Czechia and China. It produces Foamglas cellular glass, an insulation used for low-temperature industrial applications and in commercial buildings. The company also offers a line of accessory products. Pittsburgh Corning reported sales of over US$240m in 2016.
US: TopBuild will pay Owens Corning US$30m to settle a contract dispute from mid-2016. Owens Corning has also agreed to dismiss a lawsuit it filed in May 2016 against the insulation distributor and installer. Additional details of the settlement agreement remain confidential. Following the agreement both companies plan to resume a ‘productive and normalised’ commercial relationship whereby Owens Corning will sell residential insulation to TopBuild and its subsidiaries, including TruTeam.
US: Owens Corning announced plans to introduce formaldehyde-free mineral wool insulation solutions at the American Institute of Architects Conference on Architecture 2017 in Orlando, Florida. Thermafiber SAFB (Sound Attenuation Fire Blankets) is available for specification now and will be in the market later in 2017. Thermafiber UltraBatt will follow in a series of formaldehyde-free Thermafiber mineral wool insulation products.
“Remaining true to the brand’s history as an industry pioneer, the launch of formaldehyde-free Thermafiber mineral wool insulation coupled with our investment in a state-of-the-art manufacturing facility in Joplin, Missouri strengthens our impressive portfolio of product solutions and our commitment to the industry,” said Todd Fister, vice president of insulation strategic marketing.
US: Owens Corning’s net sales from insulation rose by 4% year-on-year to US$399m in the first quarter of 2017 from US$385m in the same period of 2016. However, its earnings before interest and taxation (EBIT) for insulation fell by 62% to US$5m from US$13m. The company said that the business benefitted from continued recovery in the US residential market. Overall across all business lines the company’s net sales and EBIT rose in the quarter.
“Owens Corning is off to a great start in 2017. The company capitalised on market growth and delivered an outstanding result in the quarter,” said chairman and chief executive officer Mike Thaman. “All three businesses are executing on our priorities, and we are well-positioned to achieve another year of strong performance.”
US: A fire reported at Owens Corning’s insulation plant in Newark, Ohio on 25 March 2017 is the latest in a series of such events at the site. The fire is believed to have started in the plant’s insulation system before spreading to a few rooms and the roof of a building, according to the Newark Advocate newspaper. It is the third significant fire at the site since 2013 following incidents in November 2013 and January 2014. Owens Corning has said that it takes the safety of its employees seriously and that it has taken ‘numerous’ actions to minimise the risk of fires at the plant.
US: William W Boeschenstein, the former chairman and chief executive officer of Owens Corning has died. He joined the company in 1950 and served as chief executive officer from 1973 to 1990, and chairman from 1981 to 1990. He was the son of Owens Corning's first chief executive officer, Harold Boeschenstein. These two men led the company for more than 50 years.
"Bill's strong values and commitment to integrity created a culture that is still thriving today at Owens Corning," said Mike Thaman, Owens Corning chairman and chief executive officer. "As a former colleague and personal friend, Bill will be missed for his contributions to the company, and for his generous support to our community."
Boeschenstein graduated from Yale University and served in the US Army Air Force during World War II, prior to joining Owens Corning. Under his leadership as chief executive officer, Boeschenstein shaped both the direction of the company and its industries. During this tenure, Owens Corning grew its annual sales from approximately US$615m to approximately US$3bn. Highlights of Boeschenstein career include resisting a hostile takeover in the 1980s and maintaining the company’s independence. He was also instrumental in Owens Corning's decision to utilise the Pink Panther in its advertising to link the colour of its insulation to the cartoon character.
Owens Corning’s insulation sales drop in 2016
09 February 2017US: Owens Corning’s net sales of insulation have fallen by 6% year-on-year to US$1.75bn in 2016 from US$1.85bn in the same period in 2015. Earnings before interest and taxation (EBIT) fell by 21% to US$126m from US$160m. The company previously said that it expected negative revenue growth in 2016 due to a contractual dispute with a large residential customer that began early in the second quarter of 2016. In the second half of 2016 it reported stable pricing and market recovery with its residential fibreglass insulation business. Overall, Owens Corning’s sales and EBIT rose across all business lines.
US: Owens Corning has received asthma and allergy friendly certification for its Pure Safety insulation product. It says it is the first such product to earn the certification from the Asthma and Allergy Foundation of America (AAFA). The product has less dust than comparable products and is mould and mildew resistant.
"We saw an opportunity to address the needs of over 70 million people with asthma and allergies. Caring about indoor air quality is just one way Owens Corning is committed to leveraging our building science expertise and insulation systems to create better, more sustainable and more comfortable homes," said Julian Francis, president of insulation, Owens Corning.
The Asthma and Allergy Friendly Certification Program was created in 2016. It is administered by the AAFA and Allergy Standards Limited. The program independently tests and identifies consumer products that are more suitable for those living with asthma and allergies using the Synthetic Home Insulation Products Standard, which addresses a product's effect on indoor air quality and capacity to resist mould growth.
US: Owens Corning’s insulation sales have fallen by 4% year-on-year to US$1.28bn in the first nine months of 2016 from US$1.33bn in the same period in 2015. Its earnings before interest and taxation (EBIT) fell by 7.8% to US$83m from US$90m. The company described the US new residential construction market as ‘competitive’ and said that it expects its insulation revenue in 2016 to drop by 5%. However, it believes that pricing stabilised late in the summer of 2016 and that the mid-term outlook for this business remains unchanged.
Across all businesses, the company reported that its net sales rose by 5.9% to US$4.29bn from US$4.05bn and that its EBIT rose by 37% to US$563m from US$410m. It also mentioned the strong performance of its roofing business in the third quarter of 2016.
US: Owens Corning’s sales revenue has risen by 7% year-on-year to US$2.78bn in the first half of 2016 from US$2.61bn in the same period in 2016. Its net earnings rose by 78% to US$198m from US$111m. However, sales revenue for its insulation business fell by 4% to US$799m from US$830m. No reason for the decline in insulation revenue was given, but the company expects slightly negative revenue growth and relatively flat margins to continue for the full year.