Insulation industry news from Global Insulation

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.

US: Owens Corning has reported a drop in its third quarter profit due to lower demand for roofing and composites. The insulation construction and industrial-materials company published consolidated net sales of US$1.28bn for the third quarter of 2012, compared with US$1.45bn during the same period in 2011.

Third-quarter 2012 adjusted earnings, based on the company's expected full-year effective tax rate of 25%, were US$39m compared with US$110m in the third quarter of 2011. The company reported net earnings of US$44m compared with net earnings of US$124m.

"We are disappointed in our third-quarter financial results," said chairman and chief executive officer Mike Thaman. "Despite these results, we are proud that our insulation business achieved profitability in the quarter for the first time in four years, in an improving US construction market. Roofing and Composites are experiencing challenging market conditions in the second half. We continue to focus on actions that will position these businesses for near-term improvement."

The construction and industrial-materials company warned investors earlier in October 2012 that weaker demand for roofing in the US and lower industrial production, particularly in Europe, hurt its revenue. It trimmed its full-year forecast. Owens Corning still expects adjusted earnings before interest and taxes between US$280m and US$310m for the full year of 2012.

US: Owens Corning (OC) has reported that its net income sank by half in the second quarter of 2012, as the construction and industrial-materials maker's sales softened and expenses rose. OC reported a net income of US$39m for the three months ending on 30 June 2012 compared to US$78m for the same period in 2011. Revenue fell by 4% to US$1.39bn from US$1.45bn.

OC's management has said that it no longer expects that its adjusted earnings before interest and taxes will grow in 2012, citing a weaker outlook for its roofing segment. However, the company anticipates that its profits will improve in the second half of 2012 versus the first six months of 2012. OC's operating expenses climbed by about 7% to US$154m. Higher asphalt costs ate into the company's roofing unit's profits, management noted.

Looking ahead, OC anticipates US homebuilders will break ground in 2012 on between 700,000 to 750,000 homes. On the basis of that outlook, the company expects its insulation segment will significantly narrow its losses in 2012.

US: Owens Corning (OC) has reported that its consolidated net sales increased by 9% to US$1.35bn in the first quarter of 2012, compared with US$1.24bn in the same period of 2011. Its first quarter adjusted earnings, (based on the company's expected full-year effective tax rate of 25%), were US$11m compared with US$27m in the same period of 2011. OC reported a net loss of US$46m compared with net earnings of US$24m in the first quarter of 2011.

"OC delivered results in line with our expectations for the quarter," said chairman and CEO Mike Thaman. "We continue to be confident that we will grow our adjusted earnings before interest and tax (EBIT) in 2012."

Although there continues to be uncertainty in the macro-economic outlook, OC expects to grow adjusted EBIT in 2012 based on an improving US housing market and continued growth in global industrial production.The company said that, despite weakness in the European glass fibre reinforcements market, it believes that global glass reinforcements demand will continue to grow in 2012.

Meanwhile depreciation and amortisation expenses are expected to be as much as US$320m in 2012, excluding the impact of the restructuring actions in Europe. OC expects its capital expenditure to be about US$350m in 2012.

The company also announced that its board of directors has authorised the company to repurchase up to 10 million additional shares of its outstanding common stock. Under a previously announced share repurchase programme, 3.7 million shares continue to be available for repurchase.

US: Owens Corning (OC) has swung to a fourth-quarter profit due to prior-year acquisition-related costs as the company continued to see stronger sales in its building materials. OC saw sales improve for its roofing and insulation materials in 2011 despite the ongoing slump in the US housing market. A focus on costs has helped support its bottom line.

OC reported a profit of US$50m for the fourth quarter of 2011 from a year-earlier loss of US$110m. The year-earlier period included a net US$135m in asset-sales losses and acquisition and restructuring-related charges. Its revenue increased by 2.4% to US$1.2bn and its gross margin rose to 19.2% from 17.1%. The building materials segment, OC's biggest area, reported net sales growth of 8%, including an increase of 8.7% in insulation sales.

Chairman and Chief Executive Mike Thaman said that OC anticipates improved US housing starts and modest growth in the global economy in 2012. The company expects that a strong performance in its building materials business will more than offset impacts of near-term market challenges in its composites business.

US: Owens Corning (OC), has announced today that its third-quarter profit for 2011 has more than doubled. The company attributed the increase to a jump in sales. The Toledo, Ohio company said it posted a profit attributable to common shareholders of USD124m USD1.01/share), up from USD58m from the same quarter of 2010.

Revenue rose by 22% to USD1.45bn from USD1.19bn in 2010, as sales at both the company's insulation and roofing business both rose.

The company said that, based on its current projections, it expects to post its second-consecutive year of adjusted earnings per share growth of nearly 40%.

US: For the second year in a row, Owens Corning has earned placement on the Dow Jones Sustainability World Index (DJSI World) in recognition of its sustainability initiatives. Composed of global sustainability leaders, the DJSI World Index is an elite listing of the top 10% of the world's 2500 largest companies based on long-term economic, environmental and social criteria.

"We are extremely proud to have again earned placement in the DJSI World Index," said Owens Corning Chief Sustainability Officer Frank O'Brien-Bernini. "Owens Corning is committed to balancing economic growth with social progress and environmental stewardship as we deliver sustainable solutions to our building materials and composites customers around the world. To this end, we have adopted an increasingly holistic approach that impacts our operations, our products and how we work with our customers and suppliers to deliver sustainable solutions."

The DJSI follows a best-in-class approach and includes sustainability leaders from industries worldwide, serving as an important guide for investors to assess a company's sustainability portfolio. Selection to the DJSI is based on an in-depth analysis of a company's economic, environmental and social aspects with a focus on long-term development of corporate value.