Insulation industry news from Global Insulation

US: For the fifth year in a row Owens Corning has earned placement in the Dow Jones Sustainability World Index (DJSI World) in recognition of its sustainability initiatives.

For the second straight year, Owens Corning was named the Industry Leader for the DJSI World Building Products group.

"We are proud to have earned a place on this list again this year," said chairman and CEO Mike Thaman. "Our employees are working every day to make homes more energy-efficient, roofs more durable and weather-resistant, cars more fuel efficient and renewable energy more cost effective. Our sustainability strategy is realised every day at Owens Corning, through the products we produce and the way we produce them."

Composed of global sustainability leaders, the DJSI World Index is a listing of the world's largest companies based on long-term economic, environmental and social criteria. The DJSI follow a best-in-class approach, including companies across all industries that outperform their peers in numerous sustainability metrics.

US: Owens Corning has reported second quarter 2014 profits of US$21m, down from US$49m in 2013. Its net sales were US$1.36bn, up slightly from US$1.35bn in 2013. Chairman and CEO Mike Thaman said that the insulation and composites business units met expectations for the first half of 2014, offsetting weaker financial performance in its roofing division.

UK: Owens Corning, which operates an insulation plant in Selkirk, Scotland, plans to begin using a nearby warehouse within the next three months. The company is consolidating three smaller warehouses within 30km radius of the Selkirk insulation plant into the new West Yard Road warehouse, which will be operated by a third-party logistics company. The warehouse will employ about 20 people.

"It will simplify logistics and result in stronger service for our customers," said Chuck Hartlage, Owens Corning's spokesperson. "We will do this with an improved cost structure."

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.

US: Owens Corning (OC) has reported a weaker than expected first quarter in 2014. However, company officials said that they still believe that they can meet the financial goals they set at the start of 2014 over the rest of the year.

OC reported first quarter sales of US$1.3bn, down by 5% from the same period of 2013. The biggest trouble spot was in roofing, where sales fell by 18%. The company reported a net income of US$120m in the first quarter of 2014, more than five times what it reported for the same period of 2013, however, that figure included several one-time items, the largest among them a US$74m tax benefit. On an adjusted basis, OC said that it earned US$35m in the first quarter of 2014, unchanged year-on-year.

Mike Thaman, the company's chief executive officer, said that OC had anticipated roofing volumes to be down by about 10% in the first quarter of 2014 and slightly higher for the full year. While the company said margins on roofing materials remained solid, harsh weather in much of the US and aggressive pricing from competitors dragged on OC's volumes more than expected. Thaman said that he believes the company can make up the difference in the coming quarters and end the year on target, adding that he does not expect the effects of winter to linger on the business as milder weather comes in.

OC reported higher sales figures for its insulation and composites business, even as volumes were flat in the first quarter of 2014. Thaman said the insulation segment should continue to benefit as the pace of residential construction picks up.

"We're increasingly beginning to see those two businesses develop into the kinds of performers we know they can be," Thaman said. "Insulation is coming out of four or five years of very challenging losses into a year of profitability in 2013 and now into first quarter profitability in 2014, which speaks to continued improvement throughout the year. We have big expectations for what that business can do through a new construction recovery here in the US."

US: Owens Corning has completed the construction of a 2.7MW solar power plant for its thermal and acoustical insulation facility in Delmar, New York. Constellation Energy, part of Exelon Corp, funded, constructed and will operate the solar facility. The project was developed under the NY-Sun initiative, which is being administered by the New York State Energy Research and Development Authority.

Owens Corning will buy the power generated by the plant under a 20-year power purchase agreement (PPA) with Constellation. The facility consists of 9000 ground-mounted panels and is expected to produce about 3.3BWh/yr of power, offsetting about 2339t of carbon dioxide (CO₂) emissions. It will cover over 6% of the electricity requirements of Owens Corning's insulation facility.

US: A fire was reported at an Owens Corning insulation warehouse in Newark, Ohio on 14 August 2013. According to the Newark Advocate, a fire broke out in the building materials producer's No. 77 warehouse containing bales of insulation.

Chuck Hartlage, senior communications leader at Owens Corning, confirmed that 30 employees were working in the building at the time and left the site safely. Production in the pipe insulation and mineral wool insulation plants was unaffected. Loading the operation in the main warehouse resumed on the same day. No cause for the fire has been found.

US: Owens Corning has reported a rise in adjusted earnings of 5% to US$69m in the second quarter of 2013 compared to US$67m in the same period of 2012.

The company's consolidated net sales fell slightly to US$1.35bn from US$1.39bn. The building materials manufacturer's adjusted earnings before interest and taxation (EBIT) improved by 6% to US$124m in the second quarter of 2013 from US$17m in the same period in 2012. Also of note in the quarter, in June 2013 Owens Corning acquired Thermafiber, a mineral wool insulation manufacturer.

"We are pleased with our progress in the second quarter and the first half of 2013, with strong margin performance in our Roofing business, price increases and operating leverage in Insulation and improved performance in Composites," said chairman and chief executive officer Mike Thaman.

In its outlook the company expected profitability to improve in 2013 compared to 2012 due to company action, an improving US housing market and moderate global growth. The company expects stronger insulation volumes in the second-half of 2013 driven by residential construction, high capacity utilisation and improved pricing.

US: Owens Corning has met all seven of its self-declared environmental footprint goals, the company announced as it released its seventh Sustainability Report. The fibre-glass manufacturer is now reporting against its 2020 goals.

"Our accomplishments are representative of the progress we have made this past year, but we clearly recognise that we have much more to do on the path to becoming a more sustainable, and preferably, a net-positive company," said Vice President and Chief Sustainability Officer Frank O'Brien-Bernini. "Across our company, these goals inspire innovation, creativity, external collaboration and broad engagement."

Progress towards the 2020 goals include the completion of several greenhouse gas reduction projects whilst preparing for others, including diesel-to-natural gas transportation fuel-switching, fuel cells, waste heat recovery, biomass, solar, and combined heat and power. The company has partnered with the World Resources Institute on its Aqueduct project to conduct a global water stress assessment of Owens Corning's global operations and completed several successful major water use reduction projects in stressed areas. It has released the first Environmental Product Declarations (EPD) for fibreglass insulation in North America. It has also highlighted sustainability expectations in its Supplier and Employee Code of Conducts.

US: Owens Corning has appointed Edward Lonergan, the CEO of Chiquita, to its board of directors. The appointment is effective from 18 September 2013.

"We welcome Ed to our board of directors," said Owens Corning chairman and chief executive officer Mike Thaman. "His global experience and strong commercial background make him a valuable addition to the board. We are delighted to have recruited such an outstanding director."

Lonergan was named CEO of Chiquita in 2012 and currently serves on the company's board of directors. Chiquita is a leading international marketer and distributor of bananas, packaged salads and other fresh produce. He previously served as director, president and CEO of Diversey, a leading global provider of sustainable cleaning, sanitation and hygiene solutions, from February 2006 through the sale of the company to Sealed Air Corporation in October 2011.

Lonergan has also held positions at the Gillette Company and Procter & Gamble from 1981 to 2002. He is a graduate of Union College in Schenectady, New York.