Owens Corning Reports First-Quarter 2021 Results

Rhea-AI Summary

Owens Corning (NYSE: OC) reported a 20% increase in consolidated net sales, reaching $1.9 billion for the first quarter of 2021. The company achieved net earnings of $210 million or $1.98 per diluted share, a turnaround from a $917 million loss in Q1 2020. Adjusted earnings rose to $183 million, compared to $67 million a year earlier. The firm returned $197 million to shareholders. It maintains a strong balance sheet with $1.7 billion in available liquidity and emphasizes robust housing market conditions as a positive economic indicator.

Positive

• 20% increase in net sales to $1.9 billion.
• Net earnings of $210 million compared to a loss of $917 million in Q1 2020.
• Adjusted earnings improved to $183 million from $67 million year-over-year.
• Returned $197 million to shareholders through share repurchases and dividends.
• Strong balance sheet with $1.7 billion in available liquidity.

Negative

• Continued market uncertainty due to the COVID-19 pandemic.
• General corporate expenses estimated between $135 million and $145 million.

Owens Corning (NYSE: OC) today reported consolidated net sales of $1.9 billion, an increase of 20% compared with 2020.

First-quarter 2021 net earnings attributable to Owens Corning were $210 million, or $1.98 per diluted share, compared with net loss attributable to Owens Corning of $917 million, or $8.43 per diluted share, in first-quarter 2020. The company’s first-quarter 2020 results included non-cash pre-tax impairment charges of $987 million driven by the economic uncertainties associated with the COVID-19 pandemic.

First-quarter 2021 adjusted earnings were $183 million, or $1.73 per diluted share, compared with $67 million, or $0.62 per diluted share, during the same period one year ago. First-quarter 2021 adjusted EBIT was $282 million, compared with $116 million in the same period in 2020. (See Use of Non-GAAP Measures, See Tables 2 and 3.)

“Over the past year, our team has risen to the challenges we’ve faced and we continue to demonstrate the earnings power of our company. While market conditions have turned more favorable, our operating priorities, investments, and strong execution have positioned us to deliver these outstanding financial results,” said Chairman and Chief Executive Officer Brian Chambers. “We are excited by the opportunities we have to grow our company, help our customers win in the market, and deliver value to our shareholders.”

Return of Capital and Liquidity

• During first-quarter 2021, Owens Corning repurchased 1.6 million shares of common stock for $131 million. The company returned $197 million to shareholders through share repurchases and dividends. As of the end of the quarter, 7.9 million shares were available for repurchase under the current authorization.

• Owens Corning maintains a strong balance sheet, access to liquidity, and a well-structured debt maturity profile. The company finished first-quarter 2021 with $1.7 billion of available liquidity, inclusive of $605 million in cash and cash equivalents.

Other Highlights

• Owens Corning sustained a high level of safety performance in first-quarter 2021, with a recordable incident rate of 0.64, in-line with full-year 2020 performance.

• Owens Corning continues to be a leader in environmental, social and governance (ESG) matters. The company recently published its 15th annual Sustainability Report which presented the results of its sustainability work during the previous decade, as well as progress toward its ambitious 2030 goals.

• In February, the company was recognized by the Ethisphere Institute as one of the 2021 World’s Most Ethical Companies for the fourth consecutive year.

• In March, the company announced the appointment of José Méndez-Andino as Executive Vice President and Chief Research & Development Officer, effective April 1, 2021. In this newly created role, Dr. Méndez-Andino will be responsible for leveraging product, process and material science innovation to accelerate growth for the company.

• Yesterday, the company announced the appointment of Gina Beredo as Executive Vice President, General Counsel and Corporate Secretary, effective June 9, 2021. Ms. Beredo will be responsible for overseeing global legal operations, government affairs, and corporate affairs. With over two decades of broad experience, she will join Owens Corning from Nordson Corporation, most recently serving as EVP, General Counsel and Corporate Secretary.

2021 Outlook

• The key economic factors that impact the company’s businesses are residential repair and remodeling activity, U.S. housing starts, global commercial construction activity, and global industrial production.

• In the near term, the company expects the U.S. residential housing market to remain robust and the commercial and industrial markets to continue to strengthen.

• The COVID-19 pandemic continues to create market uncertainty.

• General corporate expenses are estimated to be between $135 million and $145 million.

• Capital additions are expected to be approximately $460 million, below depreciation and amortization of approximately $480 million.

• Interest expense is estimated to be between $120 million and $130 million.

• The company estimates an effective tax rate of 26% to 28%, and a cash tax rate of 18% to 20%, both on adjusted pre-tax earnings.

First-Quarter 2021 Conference Call and Presentation

Wednesday, April 28, 2021
9 a.m. Eastern Time

All Callers

• Live dial-in telephone number: U.S. 1.888.317.6003; Canada 1.866.284.3684; and other international +1.412.317.6061.

• Entry number: 7704679 (Please dial in 10-15 minutes before conference call start time)

• Live webcast: https://services.choruscall.com/links/oc210428.html

Telephone and Webcast Replay

• Telephone replay will be available one hour after the end of the call through May 5, 2021. In the U.S., call 1.877.344.7529. In Canada, call 1.855.669.9658. In other international locations, call +1.412.317.0088.

• Conference replay number: 10153900.

• Webcast replay will be available for one year using the above link.

About Owens Corning

Owens Corning is a global building and industrial materials leader. The company’s three integrated businesses are dedicated to the manufacture and advancement of a broad range of insulation, roofing and fiberglass composite materials. Leveraging the talents of 19,000 employees in 33 countries, Owens Corning provides innovative products and sustainable solutions that address energy efficiency, product safety, renewable energy, durable infrastructure, and labor productivity. These solutions provide a material difference to the company’s customers and make the world a better place. Based in Toledo, Ohio, USA, the company posted 2020 sales of $7.1 billion. Founded in 1938, it has been a Fortune 500® company for 66 consecutive years. For more information, please visit

FAQ

What were Owens Corning's first-quarter 2021 net sales?

Owens Corning reported first-quarter 2021 net sales of $1.9 billion, a 20% increase compared to the previous year.

How much did Owens Corning earn in the first quarter of 2021?

In the first quarter of 2021, Owens Corning earned $210 million, or $1.98 per diluted share.

What is Owens Corning's outlook for the housing market in 2021?

Owens Corning expects the U.S. residential housing market to remain robust throughout 2021.

What are Owens Corning's general corporate expenses projected to be?

General corporate expenses for Owens Corning are estimated to be between $135 million and $145 million.

How much liquidity does Owens Corning have?

Owens Corning finished the first quarter of 2021 with $1.7 billion of available liquidity.