歐文斯康寧 (Owens Corning)
Owens Corning beats Wall Street estimates for second quarter earnings
Owens Corning, the Toledo-based building products manufacturer, on Wednesday reported second-quarter earnings of $96 million, or 88 cents per share, down 30 percent from the same quarter a year ago when profits totaled $138 million, or $1.26 per share.
OC, which makes fiberglass insulation, roof shingles, and other building materials, said its net sales declined 15 percent to $1.63 billion from $1.92 billion a year ago.
Despite the drop in profits and sales, the company easily beat Wall Street estimates of 26 cents a share for the quarter, according to Zacks Investment Research. The company said it is beginning to adapt to market conditions brought on by the coronavirus threat.
“Over the past several months our executive team and dedicated COVID-19 response team have worked with our global enterprise to ensure our operations remains safe and effective for our employees, their families, and other key stakeholders,” Chairman and CEO Brian Chambers told Wall Street analysts Wednesday morning on a conference call to discuss OC’s earnings.
“We remain vigilant in our use of personal protective equipment, health screenings, robust cleaning procedures, restrictions on business travel, and work from home options as we actively monitor local health conditions and update our operating protocols as risk levels change,” Mr. Chambers said.
The CEO said the company was able to capitalize on a second quarter U.S. economic recovery that was faster in the residential end markets than many anticipated.
“After experiencing a significant drop in order volumes at the start of the second quarter, we continued to see our business improve in May and June as shelter-in-place restrictions began to lift and demand for our products in most of our end markets increased,” Mr. Chambers said.
For example, the company curtailed its roofing production at the start of the quarter as demand quelled. But by the end of the quarter OC had ramped up production to full capacity.
Its insulation business also experienced solid demand in the North American residential fiberglass business segment due to a strong recovery in U.S. new construction housing.
Industrial markets, on the other hand, have been slow to recover and Mr. Chambers said OC anticipates that sluggish recovery will continue throughout the remainder of the year.
But Owens Corning is well positioned to deal with the problem because it has been aligning its financial picture to coincide with the possibility.
The CEO said the company in the second quarter was focused on minimizing discretionary expenses and it reduced its operating expenses by over $30 million compared with last year. In the second quarter, OC paid down $210 million on its existing revolving credit facility and now its only near-term debt maturity is a remaining $150 million from its term loan, which is due in February, 2021.
On Wednesday, OC shares gained $1.41 to close at $62.66 on the New York Stock Exchange.
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