Boston, MA 04/24/2014 (wallstreetpr) – Owens Corning (NYSE:OC) reported the first quarter earnings results for 2014 yesterday, which missed profit estimates. Shares of the building supplier declined 3% due to the profit amiss.
Low roofing volumes accounted for the failure of the company in meeting analysts’ expectations. The Chief Executive Officer of Owens Corning, however, said that they expect to improve their roofing business during the rest of the financial year. As of the reported quarter, performance was driven mainly by the growing Insulation and Composites improvement, which he believes will lead the company to a year of strong earnings growth.
Results
Owens Corning (NYSE:OC) reported a decline in consolidated net sales as compared to the same period of last year. In the first quarter of the prior year, the sales were $1.35 billion, while in 2014, reported sales for the same quarter were $1.28 billion. Adjusted earnings for the reported quarter were $35 million, equivalent to $0.29 per diluted share, same as the prior year year’s results. Net earnings, however, were reported to take a huge leap to $120 million from the prior year’s $22 million. While in the last year, this was equivalent to $0.18 per diluted share, this year it comes to $1.01 per diluted share.
2014 Outlook
The company expects to achieve a $500 million mark in adjusted EBIT for the full financial year 2014. The forecast is based on the present scenario for a growing housing market in the U.S., along with a moderate growth in the world market. Owens Corning (NYSE:OC) forecasts its roofing business to bring a strong year based on growth in new construction, which is likely to improve the company’s business in this sector. Insulation also is expected to benefit from new residential construction in the U.S. which portrays higher prices, as well as operating control. The improving market conditions hint towards price betterment in composites from $20 million to $30 million.
