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Owens Corning Reports Third-Quarter 2012 Results

October 24, 2012

TOLEDO, Ohio, Oct. 24, 2012 /PRNewswire/ — Owens Corning (NYSE: OC) today reported consolidated net sales of $1.28 billion in the third quarter of 2012, compared with $1.45 billion during the same period last year.

Third-quarter 2012 adjusted earnings, based on the company’s expected full-year effective tax rate of 25 percent, were $39 million, or $0.33 per diluted share, compared with $110 million, or $0.90 per diluted share, during the same period last year. The company reported net earnings of $44 million, or $0.37 per diluted share, compared with net earnings of $124 million, or $1.01 per diluted share, in the third quarter of 2011. (See Tables 1, 2 and 3 for a discussion and reconciliation of these items.)

“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 U.S. 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.”

Consolidated Third-Quarter 2012 Results

  • Owens Corning’s safety performance in the third quarter of 2012 improved by 18 percent compared with the same period one year ago. Through September 30, 2012, the company’s performance was consistent with its full-year 2011 result.
  • Third-quarter adjusted earnings before interest and taxes (EBIT) were $81 million in 2012, compared with EBIT of $177 million in the third quarter of 2011. In the third quarter of 2012, the company had certain items that were not the result of current operations. Before adjusting for these items, Owens Corning’s third-quarter 2012 EBIT was $59 million. (See Table 2 for a reconciliation of these items.)

Senior Note Offering & Stock Repurchase Activity

On October 17, the company issued a new 10-year bond of $600 million at 4.2 percent and launched a tender offer for up to $250 million of bonds maturing in 2016, and $100 million maturing in 2019. The new debt structure improves the company’s debt maturity profile and liquidity. In association with the tender offer, the company expects to incur a loss on debt extinguishment of approximately $75 million in the fourth quarter of 2012.

During the third quarter, Owens Corning repurchased 1.1 million shares of the company’s common stock for $31 million under a previously announced share repurchase program. As of September 30, 2012, 10 million shares remained available for repurchase under the company’s current authorization.

Outlook

The company expects full-year adjusted earnings before interest and taxes (EBIT) in the range of $280 million to $310 million. The company’s revised adjusted EBIT expectation for the year reflects near-term weakness in Roofing demand, higher curtailment and start-up costs in Composites as well as softer growth in global industrial production. In addition, the company will benefit this year from a recovering U.S. housing market of approximately 750,000 starts.

The effects of weaker demand and further production curtailments to reach inventory goals have led to lower margin expectations for the Composites business in the fourth quarter. As previously announced, the company is taking actions in this segment to balance supply and to transform this operation into a global network of low-delivered-cost assets. The company expects the actions to optimize its global Composites manufacturing network to yield approximately $60 million of cost and productivity improvements in a modest growth environment for next year.

In the Building Materials segment, Roofing weakness experienced during the latter part of the third quarter is not expected to improve for the remainder of the year. However, the company expects the factors that have driven margins in recent years will continue to deliver profitability in this business.

The company expects that Insulation will improve financial performance for the remainder of the year and significantly narrow losses in 2012 on improved U.S. housing starts and operating leverage in the business.

Cash taxes are expected to be about $30 million in 2012, due to the company’s $2.2 billion U.S. tax net operating loss carry forward. The company estimates a long-term effective tax rate of 25 percent to 28 percent based on the blend of effective tax rates for its U.S. and non-U.S. operations. The effective book tax rate for 2012 is expected to be about 25 percent on adjusted earnings.

The company expects general corporate expenses to be less than $100 million in 2012. General corporate expenses include corporate staff and other activities that support the operations. Expenses will be higher in 2012 than in 2011, primarily due to increased pension expense.

Next Earnings Announcement

Fourth-quarter and full-year 2012 results will be announced on Wednesday, February 20, 2013.

Third-Quarter Conference Call and Presentation

Wednesday, October 24, 2012
11 a.m. Eastern Time

All Callers
Live dial-in telephone number: U.S. 1-800-561-2731 or International 1-617-614-3528
Participant passcode: 938-784-21 (Please dial in 10 minutes before conference call start time.)

Live webcast: http://www.owenscorning.com/investors

Telephone replay available through October 31, 2012: U.S. 1-888-286-8010 or International 1-617-801-6888
Participant passcode: 515-670-11

Replay of webcast also available at: http://www.owenscorning.com/investors

Presentation
To view the slide presentation during the conference call, please log on to the live webcast at: http://www.owenscorning.com/investors

About Owens Corning

Owens Corning (NYSE: OC) is a leading global producer of residential and commercial building materials, glass-fiber reinforcements and engineered materials for composite systems. A Fortune(®) 500 Company for 58 consecutive years, Owens Corning is committed to driving sustainability by delivering solutions, transforming markets and enhancing lives. Celebrating its 75th anniversary in 2013, Owens Corning is a market-leading innovator of glass-fiber technology with sales of $5.3 billion in 2011 and about 15,000 employees in 28 countries on five continents. Additional information is available at www.owenscorning.com.

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those projected in these statements. Such factors include, without limitation: economic and political conditions, including new legislation or other governmental actions; levels of residential and commercial construction activity; competitive factors; pricing factors; weather conditions; our level of indebtedness; industry and economic conditions that affect the market and operating conditions of our customers, suppliers or lenders; availability and cost of energy and materials; availability and cost of credit; interest rate movements; issues related to expansion of our production capacity; issues related to acquisitions, divestitures and joint ventures; our ability to use our net operating loss carry-forwards; achievement of expected synergies, cost reductions and/or productivity improvements; issues involving implementation of new business systems; foreign exchange fluctuations; research and development activities; difficulties in managing production capacity; labor disputes; and, factors detailed from time to time in the company’s Securities and Exchange Commission filings. The information in this news release speaks as of the date October 24, 2012, and is subject to change. The company does not undertake any duty to update or revise forward-looking statements. Any distribution of this news release after that date is not intended and will not be construed as updating or confirming such information.

                                           Table 1Owens Corning and SubsidiariesConsolidated Statements of Earnings(unaudited)(in millions, except per share amounts)
                                                                                                                    Three Months Ended                             Nine Months Ended
                                                                                                                         Sep. 30,                                      Sep. 30,
                                                                                                                         --------                                      --------
                                                                                                                            2012                            2011                            2012                            2011
                                                                                                                            ----                            ----                            ----                            ----
    NET SALES                                                                                                             $1,276                          $1,450                          $4,013                          $4,139
    COST OF SALES                                                                                                          1,074                           1,133                           3,386                           3,341
    -------------                                                                                                          -----                           -----                           -----                           -----
                                                                 Gross margin                                                202                             317                             627                             798
    OPERATING EXPENSES
                                                                  Marketing and
                                                                  administrative
                                                                  expenses                                                   115                             119                             380                             395
                                                                  Science and
                                                                  technology
                                                                  expenses                                                    20                              20                              60                              58
                                                                  Charges related
                                                                  to cost
                                                                  reduction
                                                                  actions                                                      -                               -                              36                               -
                                                                  Other (income)
                                                                  expenses, net                                                8                               1                              19                             (28)
                                                                  --------------                                             ---                             ---                             ---                             ---
                                                                 Total operating expenses                                    143                             140                             495                             425
                                                                 ------------------------                                    ---                             ---                             ---                             ---
    EARNINGS BEFORE INTEREST AND TAXES                                                                                        59                             177                             132                             373
    Interest expense, net                                                                                                     29                              28                              85                              81
    ---------------------                                                                                                    ---                             ---                             ---                             ---
    EARNINGS BEFORE TAXES                                                                                                     30                             149                              47                             292
    Less: Income tax expense (benefit)                                                                                       (14)                             23                               8                              63
    Equity in net earnings of affiliates                                                                  -                               -                               -                               1
    ------------------------------------                                                                ---                             ---                             ---                             ---
    NET EARNINGS                                                                                                              44                             126                              39                             230
    Less: Net earnings attributable to noncontrolling interests                                           -                               2                               2                               4
    --------------------------------------------------                                                  ---                             ---                             ---                             ---
    NET EARNINGS ATTRIBUTABLE TO OWENS CORNING                                                                               $44                            $124                             $37                            $226
    ==========================================                                                                               ===                            ====                             ===                            ====

    EARNINGS PER COMMON SHARE ATTRIBUTABLE TO
                                                                  OWENS CORNING
                                                                  COMMON
                                                                  STOCKHOLDERS
                                                                 Basic                                                     $0.37                           $1.02                           $0.31                           $1.83
                                                                 Diluted                                                   $0.37                           $1.01                           $0.31                           $1.82

    WEIGHTED-AVERAGE COMMON SHARES
                                                                 Basic                                                     117.9                           121.7                           119.8                           123.2
                                                                 Diluted                                                   118.8                           122.6                           120.6                           124.2

    Owens Corning follows the authoritative guidance referring to "Noncontrolling Interest in Consolidated Financial Statements," effective January 1, 2009, which, among other things, changed the presentation
     format and certain captions of the Consolidated Statements of Earnings and Consolidated Balance Sheets. Owens Corning uses the captions recommended by this standard in its Consolidated Financial
     Statements such as net earnings attributable to Owens Corning and diluted earnings per common share attributable to Owens Corning common stockholders. However, in the preceding release Owens Corning has
     shortened this language to net earnings and earnings per share (or a slight variation thereof), respectively.

                                                                                                          Table 2
                                                                                              Owens Corning and Subsidiaries
                                                                                               EBIT Reconciliation Schedules
                                                                                                        (unaudited)

    For purposes of internal review of Owens Corning's year-over-year operational performance, management excludes from net earnings attributable to Owens Corning certain items it believes
     are not the result of current operations. The adjusted financial measure resulting from these adjustments is used internally by Owens Corning for various purposes, including reporting
     results of operations to the Board of Directors, analysis of performance, and related employee compensation measures. Although management believes that these adjustments result in a
     measure that provides it a useful representation of its operational performance, the adjusted measure should not be considered in isolation or as a substitute for net earnings
     attributable to Owens Corning as prepared in accordance with accounting principles generally accepted in the United States.

    Adjusting items are shown in the table below (in millions), which are related to our European restructuring actions:

                                                                Three Months Ended                    Nine Months Ended
                                                                   September 30,                        September 30,
                                                                   -------------                        -------------
                                                                              2012                        2011                         2012                   2011
                                                                              ----                        ----                         ----                   ----
    Charges related to cost reduction actions and related
     items                                                                                     $(22)                     $                -                                     $(109)                     $                -
    -----------------------------------------------------                                      ----                    ---              ---                                     -----                    ---              ---
                          Total adjusting
                          items                                               $(22)                          $           -                                   $(109)                            $           -
                         ================                                     ====                         ===         ===                                   =====                           ===         ===

    The reconciliation from net earnings attributable to Owens Corning to Adjusted EBIT is shown in the table below (in millions):

                                                                Three Months Ended                    Nine Months Ended
                                                                   September 30,                        September 30,
                                                                   -------------                        -------------
                                                                              2012                        2011                         2012                   2011
                                                                              ----                        ----                         ----                   ----
    NET EARNINGS ATTRIBUTABLE TO
                         OWENS CORNING                                         $44                                    $124                                     $37                                      $226
                          Less: Net
                          earnings
                          attributable
                          to
                          noncontrolling
                          interests                                              -                                       2                                       2                                         4
                         --------------                                        ---                                     ---                                     ---                                       ---
    NET EARNINGS                                                                                 44                                     126                                        39                                     230
                          Equity in net
                          earnings of
                          affiliates                                             -                                       -                                       -                                         1
                          Income tax
                          expense
                          (benefit)                                            (14)                                     23                                       8                                        63
                         -----------                                           ---                                     ---                                     ---                                       ---
    EARNINGS BEFORE TAXES                                                                        30                                     149                                        47                                     292
                          Interest expense,
                          net                                                   29                                      28                                      85                                        81
                         -----------------                                     ---                                     ---                                     ---                                       ---
    EARNINGS BEFORE INTEREST AND TAXES                                                           59                                     177                                       132                                     373
                          Less: adjusting
                          items from above                                     (22)                                      -                                    (109)                                        -
                         ----------------                                      ---                                     ---                                    ----                                       ---
    ADJUSTED EBIT                                                                               $81                                    $177                                      $241                                    $373
    =============                                                                               ===                                    ====                                      ====                                    ====

                                                                                                                            Table 3
                                                                                                                Owens Corning and Subsidiaries
                                                                                                                 EPS Reconciliation Schedules
                                                                                                                          (unaudited)
                                                                                                             (in millions, except per share data)

    For purposes of internal review of Owens Corning's year-over-year operational performance, management excludes from net earnings attributable to Owens Corning certain items it believes are not the result of current
     operations. The adjusted financial measures resulting from these adjustments are used internally by Owens Corning for various purposes, including reporting results of operations to the Board of Directors, analysis of
     performance and related employee compensation measures. Although management believes that these adjustments result in measures that provide it a useful representation of its operational performance, the adjusted
     measures should not be considered in isolation or as a substitute for net earnings attributable to Owens Corning as prepared in accordance with accounting principles generally accepted in the United States.

    A reconciliation from net earnings attributable to Owens Corning to Adjusted Earnings and a reconciliation from diluted earnings per share to adjusted diluted earnings per share are shown in the tables below:

                                                                                                   Three Months Ended                              Nine Months
                                                                                                                                                      Ended
                                                                                                         Sep. 30,                                    Sep. 30,
                                                                                                         --------                                    --------
                                                                                                                  2012                                        2011                                        2012                                        2011
                                                                                                                  ----                                        ----                                        ----                                        ----
    RECONCILIATION TO ADJUSTED EARNINGS
    Net earnings attributable to Owens Corning                                                                     $44                                        $124                                         $37                                        $226
                              Adjustment
                              to remove
                              adjusting
                              items net
                              of tax                                                           17                                           -                                          82                                           -
                              Adjustment
                              to tax
                              expense to
                              reflect pro
                              forma tax
                              rate*                                                           (22)                                        (14)                                         (4)                                        (10)
    ADJUSTED EARNINGS                                                                                              $39                                        $110                                        $115                                        $216
    =================                                                                                              ===                                        ====                                        ====                                        ====

    RECONCILIATION TO ADJUSTED DILUTED EARNINGS (LOSS) PER SHARE
                             ATTRIBUTABLE TO OWENS CORNING COMMON STOCKHOLDERS
    DILUTED EARNINGS PER COMMON SHARE ATTRIBUTABLE
                              TO OWENS CORNING
                              COMMON
                              STOCKHOLDERS                                                  $0.37                                       $1.01                                       $0.31                                       $1.82
                              Adjustment
                              to remove
                              adjusting
                              items net
                              of tax                                                         0.14                                           -                                        0.68                                           -
                              Adjustment
                              to tax
                              expense to
                              reflect a
                              pro forma
                              tax rate*                                                     (0.18)                                      (0.11)                                      (0.04)                                      (0.08)
                             -----------                                                    -----                                       -----                                       -----                                       -----
    ADJUSTED DILUTED EARNINGS PER SHARE
                              ATTRIBUTABLE TO
                              OWENS CORNING
                              COMMON
                              STOCKHOLDERS                                                  $0.33                                       $0.90                                       $0.95                                       $1.74
                             ----------------                                               -----                                       -----                                       -----                                       -----

    RECONCILIATON TO DILUTED SHARES OUTSTANDING
    Weighted-average shares outstanding
                              used for basic
                              earnings per
                              share                                                         117.9                                       121.7                                       119.8                                       123.2
                              Non-vested
                              restricted
                              shares                                                          0.6                                         0.6                                         0.5                                         0.6
                              Options to
                              purchase
                              common
                              stock                                                           0.3                                         0.3                                         0.3                                         0.4
                             ===========                                                      ===                                         ===                                         ===                                         ===
    Diluted shares outstanding                                                                                   118.8                                       122.6                                       120.6                                       124.2
    ==========================                                                                                   =====                                       =====                                       =====                                       =====

    * Pro forma tax rates used were 25% in 2012 as this is the expected full-year effective tax rate, and, 21% in 2011 as this was the effective tax rate of the Company in 2011.

                                                              Table 4
                                                  Owens Corning and Subsidiaries
                                                    Consolidated Balance Sheets
                                                            (unaudited)
                                                           (in millions)
    ASSETS                                                                                          Sep. 30,  Dec. 31,
                                                                                                         2012     2011
                                                                                                         ----     ----
    CURRENT ASSETS
                                            Cash and cash
                                            equivalents                                        $51                 $52
                                            Receivables, less
                                            allowances of
                                            $19 at Sep. 30,
                                            2012, and $15 at
                                            Dec. 31, 2011                                      770                 610
                                           Inventories                                         793                 795
                                            Other current
                                            assets                                             155                 179
                                           --------------                                      ---                 ---
                                           Total current assets                              1,769               1,636
    Property, plant and equipment, net                                             2,912                2,904
    Goodwill                                                                       1,144                1,144
    Intangible assets                                                              1,050                1,073
    Deferred income taxes                                                            564                  538
    Other non-current assets                                                         253                  232
    ------------------------                                                         ---                  ---
    TOTAL ASSETS                                                                  $7,692               $7,527
    ============                                                                  ======               ======

    LIABILITIES AND EQUITY
    ----------------------
    CURRENT LIABILITIES
                                            Accounts payable
                                            and accrued
                                            liabilities                                       $867                $876
                                           Short-term debt                                      19                  28
                                            Long-term debt -
                                            current portion                                      6                   4
                                           -----------------                                   ---                 ---
                                           Total current liabilities                           892                 908
    Long-term debt, net of current portion                                         2,191                1,930
    Pension plan liability                                                           420                  435
    Other employee benefits liability                                                259                  267
    Deferred income taxes                                                             43                   51
    Other liabilities                                                                207                  195
    Commitments and contingencies
    OWENS CORNING STOCKHOLDERS' EQUITY
                                            Preferred stock,
                                            par value $0.01
                                            per share (a)                                        -          -        -
                                            Common stock, par
                                            value $0.01 per
                                            share (b)                                            1                   1
                                            Additional paid
                                            in capital                                       3,917               3,907
                                            Accumulated
                                            earnings                                           507                 470
                                            Accumulated other
                                            comprehensive
                                            deficit                                           (305)               (315)
                                            Cost of common
                                            stock in
                                            treasury (c)                                      (475)               (362)
                                           ---------------                                    ----                ----
                                            Total Owens Corning stockholders'
                                            equity                                           3,645               3,701
                                            Noncontrolling
                                            interests                                           35                  40
                                           ---------------                                     ---                 ---
    Total equity                                                                   3,680                3,741
    ------------                                                                   -----                -----
    TOTAL LIABILITIES AND EQUITY                                                  $7,692               $7,527
    ============================                                                  ======               ======

    (a)                                     10 shares authorized; none issued or outstanding
                                            at Sep. 30, 2012, and Dec. 31, 2011
    (b)                                     400 shares authorized; 135.5 issued and 118.2
                                            outstanding at Sep. 30, 2012; 134.4 issued and
                                            120.9 outstanding at Dec. 31, 2011
    (c)                                     17.3 shares at Sep. 30, 2012, and 13.5 shares at
                                            Dec. 31, 2011

                                                                                        Table 5
                                                                            Owens Corning and Subsidiaries
                                                                         Consolidated Statements of Cash Flows
                                                                                      (unaudited)
                                                                                     (in millions)

                                                                                                                                                               Nine Months Ended
                                                                                                                                                                   Sep. 30,
                                                                                                                                                                   --------
                                                                                                                                                                2012                            2011
                                                                                                                                                                ----                            ----
    NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES
                                                    Net earnings                                                                                        $39                            $230
                                                     Adjustments to
                                                     reconcile net
                                                     earnings to cash
                                                     provided by
                                                     operating
                                                     activities:
                                                                            Depreciation and amortization                                                        269                             243
                                                                             Gain on sale of businesses and
                                                                             fixed assets                                                                         (3)                            (30)
                                                                            Deferred income taxes                                                                (25)                             29
                                                                             Provision for pension and other
                                                                             employee benefits liabilities                                                        33                              26
                                                                            Stock-based compensation expense                                                      18                              16
                                                                            Other non-cash                                                                        (9)                            (18)
                                                     Change in working
                                                     capital                                                                                           (171)                           (330)
                                                     Pension fund
                                                     contribution                                                                                       (42)                           (104)
                                                     Payments for other
                                                     employee benefits
                                                     liabilities                                                                                        (17)                            (17)
                                                    Other                                                                                                 1                              14
                                                    -----                                                                                               ---                             ---
                                                                             Net cash flow provided by
                                                                             operating activities                                                                 93                              59
                                                                            --------------------------                                                           ---                             ---
    NET CASH FLOW USED FOR INVESTING ACTIVITIES
                                                     Additions to plant
                                                     and equipment                                                                                     (235)                           (303)
                                                     Investment in
                                                     subsidiaries and
                                                     affiliates, net of
                                                     cash acquired                                                                                                -                             (84)
                                                     Proceeds from the
                                                     sale of assets or
                                                     affiliates                                                                                          12                              81
                                                    ------------------                                                                                  ---                             ---
                                                                             Net cash flow used for investing
                                                                             activities                                                                         (223)                           (306)
                                                                            ---------------------------------                                                   ----                            ----
    NET CASH FLOW PROVIDED BY FINANCING ACTIVITIES
                                                     Proceeds from senior
                                                     revolving credit and
                                                     receivables
                                                     securitization
                                                     facilities                                                                                       1,205                           1,007
                                                     Payments on senior
                                                     revolving credit and
                                                     receivables
                                                     securitization
                                                     facilities                                                                                        (929)                           (629)
                                                     Proceeds from long-
                                                     term debt                                                                                                    -                               6
                                                     Payments on long-
                                                     term debt                                                                                          (13)                            (10)
                                                     Net increase
                                                     (decrease) in short-
                                                     term debt                                                                                           (9)                             17
                                                     Purchases of
                                                     noncontrolling
                                                     interest                                                                                           (22)                              -
                                                     Purchases of treasury
                                                     stock                                                                                             (113)                           (138)
                                                    Other                                                                                                 9                              12
                                                    -----                                                                                               ---                             ---
                                                                             Net cash flow provided by
                                                                             financing activities                                                                128                             265
                                                                            --------------------------                                                           ---                             ---
    Effect of exchange rate changes on cash                                                                                                                        1                             (20)
    ---------------------------------------                                                                                                                      ---                             ---
    Net decrease in cash and cash equivalents                                                                                                                     (1)                             (2)
    Cash and cash equivalents at beginning of period                                                                                                              52                              52
    ------------------------------------------------                                                                                                             ---                             ---
    CASH AND CASH EQUIVALENTS AT END OF PERIOD                                                                                                                   $51                             $50
    ==========================================                                                                                                                   ===                             ===

                                                              Table 6Owens Corning and SubsidiariesSegment and Business Information(unaudited)
    Composites

    The table below provides a summary of net sales, EBIT and depreciation and amortization expense for the Composites segment (in millions):

                                                                                  Three Months Ended                           Nine Months Ended
                                                                                       Sep. 30,                                    Sep. 30,
                                                                                       --------                                    --------
                                                                                       2012                  2011                   2012         2011
                                                                                       ----                  ----                   ----         ----
    Net sales                                                                                   $459                                $496              $1,433 $1,517
                 % change from prior year                                                       -7%                                  4%                 -6%     6%

    EBIT                                                                                       $11                                 $49                 $68   $152
                 EBIT as a % of net sales                                                        2%                                 10%                  5%    10%

    Depreciation and amortization expense                                                      $30                                 $31                 $91    $97
    -------------------------------------                                                      ---                                 ---                 ---    ---
    Building Materials

    The table below provides a summary of net sales, EBIT and depreciation and amortization expense for the Building Materials segment and our businesses within this segment (in millions):

                                                                                                                 Three Months Ended                     Nine Months Ended
                                                                                                                      Sep. 30,                              Sep. 30,
                                                                                                                      --------                              --------
                                                                                                                      2012                  2011                    2012                     2011
                                                                                                                      ----                  ----                    ----                     ----
    Net sales
                                           Insulation                                                                          $384                                 $365                           $1,055    $981
                                           Roofing                                                                              471                                  644                            1,664   1,785
                                           -------                                                                              ---                                  ---                            -----   -----
    Total Building Materials                                                                                                   $855                               $1,009                           $2,719  $2,766
                                                % change from prior year                                               -15%                   36%                     -2%                      10%

    EBIT
                                           Insulation                                                                            $3                                 $(12)                            $(47)   $(97)
                                           Roofing                                                                               83                                  156                              289     374
                                           -------                                                                              ---                                  ---                              ---     ---
    Total Building Materials                                                                                                    $86                                 $144                             $242    $277
                                                EBIT as a % of net sales                                                10%                   14%                      9%                      10%

    Depreciation and amortization expense
                                           Insulation                                                                           $28                                  $30                              $80     $89
                                           Roofing                                                                               10                                   10                               28      31
                                           -------                                                                              ---                                  ---                              ---     ---
    Total Building Materials                                                                                                    $38                                  $40                             $108    $120
    ------------------------                                                                                                    ---                                  ---                             ----    ----

                                                                         Table 7Owens Corning and SubsidiariesCorporate, Other and Eliminations(unaudited)
    Corporate, Other and Eliminations

    The table below provides a summary of EBIT and depreciation and amortization expense for the Corporate, Other and Eliminations category (in millions):

                                                                        Three Months Ended                      Nine Months Ended
                                                                             Sep. 30,                                Sep. 30,
                                                                             --------                                --------
                                                                                      2012                        2011                         2012        2011
                                                                                      ----                        ----                         ----        ----
    Charges related to cost reduction actions and
     related items                                                                                     $(22)                     $                -             $(109) $(17)
    Gain on sale of Capivari, Brazil, facility                                                            -                                       -                 -    16
    General corporate expense and other                                                                 (16)                                    (16)              (69)  (55)
    -----------------------------------                                                                 ---                                     ---               ---   ---
    EBIT                                                                                               $(38)                                   $(16)            $(178) $(56)
    ====                                                                                               ====                                    ====             =====  ====

    Depreciation and amortization                                                                       $21                                      $7               $70   $26
    -----------------------------                                                                       ---                                     ---               ---   ---

SOURCE Owens Corning


Source: PR Newswire