Insulation industry news from Global Insulation

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.

Denmark: Rockwool International A/S saw its net profit decline slightly to Euro16.5m in the three months to 30 June 2011 from Euro17.2m in the corresponding period of 2010.

Recovery in the company's main European insulation markets, driven by Germany and France, continued and considerable growth was marked in Poland and Russia as well.

Net sales went up to Euro845m from Euro452m. Operating costs expanded by 18% to Euro434m, which led to a reduction in earnings before interest, tax, depreciation and amortisation (EBITDA) to Euro57.9m from Euro64.8m in the quarter.

Rockwool foresees that further sales growth will come in the coming quarters. Rockwool anticipates that its net profit after minority interests will be Euro73.8m for 2011.

US: Owens Corning's (OC) has registered second quarter profit of USD78m, down by 92% from USD937m in the same period of 2010. This was due to the absence of a tax benefit received in 2010. The group's revenue increased by 5.3% to USD1.45bn and its gross margin fell to 19.2% from 20.6%.

Its building materials business, its biggest contributor to the top line, saw revenue rise by 4% thanks to increased roofing sales volumes. This was partly offset by lower insulation sales volumes and the sale of its masonry products business. Its composites sales rose by 8%, mostly thanks to positive currency impacts and, to a lesser degree, higher prices.

OC has also announced that it has completed the acquisition of FiberTEK Insulation LLC and FiberTEK Insulation West LLC. The acquisitions include manufacturing locations in Lakeland, Florida and Nephi, Utah and expand the group's loosefill insulation capacity while strengthening the company's ability to serve North American customers.

Loosefill insulation is becoming more popular due to the increased prevalence of higher efficiency building codes that require increased levels of attic insulation and for its ease of use in energy-efficient retrofits. Unbonded loosefill insulation has grown its share in overall US light density residential fiberglass insulation sales in recent years and represents a success-story amid the broader US residential construction downturn.

"The acquisition of the FiberTEK companies is a great addition for OC and our customers," said Tom Quigley, OC's vice president and general manager for residential insulation. "These acquisitions position OC to serve our customers in this segment as the market returns. They also benefit existing FiberTEK customers by making available our entire array of insulation products, including our revolutionary EcoTouch^(TM) family of high-performance residential and light commercial insulation products." The FiberTEK acquisitions will also enable Owens Corning to expand growth opportunities for its EnergyComplete^(TM) insulation and air sealing system.