Insulation industry news from Global Insulation

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.

Saudi Arabia: Arabian Fiberglass Insulation (AFICO), a joint-venture between Owens Corning and Zamil Industrial Investment, has inaugurated its new fibreglass manufacturing plant costing US$50m in Dammam, Saudi Arabia.

The plant has an installed insulation production capacity of 24,000Mt/yr, increasing the company's total capacity to 37,000Mt/yr. The additional capacity is intended to assist local governing authorities in the Gulf Cooperation Countries with on-going efforts to implement more stringent building code requirements aimed at increased energy efficiency and fire safety standards.

AFICO has been a leading regional manufacturer of fibreglass insulation products since 1982, utilising the know-how and technical specifications of Owens Corning under license.

US: Owens Corning has reported consolidated net sales of US$1.3bn in the first quarter of 2013, little change from the same period of 2012. However, the company reported net earnings of US$22m in the first quarter of 2013, compared to a net loss of US$46m in 2012.

"Insulation demonstrated strong price execution and is on track for full-year profitability and double-digit revenue growth in 2013," said chairman and chief executive Officer Mike Thaman. He added that the company remains reliant on

the pace of the US housing recovery and its impact on the margin performance of the Building Materials businesses for future performance.

For its outlook Owens Corning expects at least US$100m in adjusted earnings before interest and tax (EBIT) improvement over 2012 as a result of company actions, an improving US housing market and moderate global growth. It said that the insulation sector will continue to benefit from the growth in US residential new construction, higher asset utilisation rates and better pricing.

US: Owens Corning has lost US$56m in the fourth quarter of 2012, pulled down by hefty debt-related and restructuring charges. In the same period of 2011 it reported earnings of US$50m. The construction and industrial-materials company said it expects to get a boost in 2013 from an improving US housing market and moderate global growth.

Net sales for the fourth quarter of 2012 fell year-on-year by 3% to US$1.16bn from US$1.20bn. For 2012 as a whole Owens Corning posted a slight decline in net sales to US$5.17bn from US$5.34bn.

Net sales for the company's insulation business rose by 7% to US$413m in the fourth quarter of 2012 from US$US$387m. For 2012 as a whole net sales in insulation rose by 7% to US$1.47bn from US$1.37bn. The company said that its insulation business should benefit from the growth in residential construction, along with higher utilisation rates and better pricing. Yet Owens Corning noted that prices remain significantly below historical levels.

US: Owens Corning has announced its receipt of UL-certified ISO compliant Environmental Product Declarations (EPDs) for its Unfaced and Kraft-Faced EcoTouch^(R) PINK^(R) FIBERGLAS^(TM) Insulation with PureFiber^(R) Technology and its Unbonded LooseFill Insulation. An EPD is an internationally-recognised, standardised tool that reports the environmental impact of goods or services.

An industry first for fibreglass building insulation in North America, the EPDs describe the environmental impact of the insulation products based upon an established set of product category rules and independently verified life cycle assessment (LCA) data from cradle-to-grave. Through the LCA process, products are evaluated on several parameters including raw material production and transportation, product manufacturing and plant operations, product packaging, transportation and distribution of the insulation products and end of life impact.

"The UL-certified EPDs for our EcoTouch^(R) Unfaced and Kraft-Faced Batts and Unbonded LooseFill Insulation reflect our commitment to sustainability and our pledge to be transparent about our products' environmental performance through certification by credible third parties," said Gale Tedhams, director of sustainability for Owens Corning. "The EPDs are a valuable tool, providing the next-level of product information for architects, builders and specifiers to help them meet certain criteria for green building and make sustainable purchasing decisions."

Owens Corning's new EPDs underline insulation as a key contributor to a building's overall energy-efficiency, helping to reduce the energy required to maintain a comfortable living or work environment. Typically, insulation saves 12 times as much energy in its first year in place as the energy used to produce it. That means that the energy consumed during manufacturing is saved during the first four to five weeks of product use.