Company Delivers Strong Operating Cash Flow; Board of Directors
Approves Additional Share Repurchase Authorization for up to 10 Million
Shares
-
Composites delivered EBIT of $61 million
-
Roofing grew EBIT to $146 million, a 42 percent increase
-
Insulation delivered $38 million of EBIT
-
Company continues to expect full-year adjusted EBIT of $700 million or
more
TOLEDO, Ohio--(BUSINESS WIRE)--
Owens Corning (NYSE: OC) today reported consolidated net sales of $1.52
billion in the third quarter of 2016, compared to net sales of $1.45
billion in the prior-year period.
The company reported net earnings of $112 million, or $0.97 per diluted
share in the third quarter of 2016, compared with net earnings of $112
million, or $0.95 per diluted share, in the same period in 2015. Third
quarter 2016 adjusted earnings were $125 million, or $1.09 per diluted
share, compared with $113 million, or $0.96 per diluted share, during
the same period one year ago (See Use of Non-GAAP Measures).
“In the third quarter, Owens Corning continued the strong performance we
have seen throughout 2016. Our Roofing business delivered another
outstanding quarter with favorable market conditions, great margin
performance and revenue growth associated with our first-half
acquisition. Based on our strong performance and cash flow outlook, the
Board of Directors has approved an additional share repurchase
authorization for up to 10 million shares,” said Chairman and Chief
Executive Officer Mike Thaman.
Consolidated Third-Quarter Results and Other
Highlights
-
Owens Corning continues to perform at a high level of safety with a
recordable incident rate of 0.52 for the first nine months of 2016,
consistent with the comparable period in 2015.
-
Reported earnings before interest and taxes (“EBIT”) for the third
quarter of 2016 were $207 million, compared with $196 million during
the same period in 2015. Adjusted EBIT in the third quarter was $218
million, up from $198 million in 2015 (See Table 2).
-
Year-to-date cash from operating activities improved by $269 million
year-over-year as a result of improved earnings and working capital
performance (See Table 8).
-
During the third quarter, Owens Corning repurchased 1.6 million shares
of its common stock for $86 million. During the first nine months of
2016, the company repurchased 3.4 million shares for $171 million. The
Board of Directors has approved an additional share repurchase
authorization for up to 10 million shares.
-
The company issued $400 million of 10-year senior unsecured notes at
3.4 percent. The proceeds were used to redeem the remaining $158
million in outstanding 6.5 percent senior notes due later this year.
The company also paid off the $300 million term loan associated with
the InterWrap acquisition.
-
The Board of Directors declared a quarterly cash dividend of $0.18 per
common share. The dividend will be payable on November 2, 2016, to
shareholders of record as of October 17, 2016.
-
For the seventh consecutive year, Owens Corning earned placement in
the Dow Jones Sustainability World Index (DJSI World) in recognition
of its sustainability initiatives, and was named industry leader for
the DJSI Building Products group for the fourth consecutive year.
Outlook
The company expects an environment consistent with consensus
expectations for U.S. housing starts and moderate global growth.
In Composites, the company continues to expect growth in the glass fiber
market, driven by moderate global industrial production growth. The
company is on track to deliver EBIT growth of about $30 million for
2016, with rebuild and plant start up expenses sequentially lower by
over $10 million in the fourth quarter.
In Roofing, the company now expects low-teen market growth for 2016,
including modest demand from Hurricane Matthew. While this revised
demand outlook now assumes growth in the second half, we have
challenging volume comparisons against the very strong fourth quarter of
2015.
In Insulation, the company experienced a more competitive environment in
the U.S. new residential construction market and now expects full-year
2016 revenue could be down by about five percent compared with 2015,
with a full-year EBIT margin rate one percentage point below last year.
The company believes pricing stabilized late in the summer and the
mid-term outlook for this business remains unchanged.
The company estimates an effective tax rate of 32 percent to 34 percent,
and a cash tax rate of 10 percent to 12 percent on adjusted pre-tax
earnings, due to the company’s $2.0 billion U.S. tax net operating loss
carryforward.
The company now expects general corporate expenses at the bottom half of
the $120 million to $130 million guidance range in 2016. Capital
additions in 2016 are expected to total approximately $385 million,
including an estimated $50 million for the completion of the previously
announced mineral fiber insulation facility. Interest expense is
expected to be about $110 million.
For the full-year 2016, the company continues to expect adjusted EBIT of
$700 million or more.
Next Earnings Announcement
Fourth-quarter 2016 results will be announced on Wednesday, February 8,
2017.
Third-Quarter 2016 Conference Call and
Presentation
Wednesday, October 26, 2016
11 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: 540-4408 (Please dial in 10-15 minutes before conference call
start time)
Live webcast: http://services.choruscall.com/links/oc161026.html
Telephone and Webcast Replay
Telephone replay will be available one hour after the end of the call
through November 2, 2016. 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: 100-933-59
Replay
available at http://services.choruscall.com/links/oc161026.html
Webcast
replay available until October 26, 2017
About Owens Corning
Owens Corning (NYSE: OC) develops, manufactures, and markets insulation,
roofing, and fiberglass composites. Global in scope and human in scale,
the company’s market-leading businesses use their deep expertise in
materials, manufacturing and building science to develop products and
systems that save energy and improve comfort in commercial and
residential buildings. Through its glass reinforcements business, the
company makes thousands of products lighter, stronger and more durable.
Ultimately, Owens Corning people and products make the world a better
place. Based in Toledo, Ohio, Owens Corning posted 2015 sales of $5.4
billion and employs about 16,000 people in 25 countries. It has been a
Fortune 500® company for 62 consecutive years. For more
information, please visit www.owenscorning.com.
Use of Non-GAAP Measures
Owens Corning uses non-GAAP measures in its earnings press release that
are intended to supplement investors’ understanding of the company’s
financial information. These non-GAAP measures include adjusted EBIT,
adjusted earnings, adjusted diluted earnings per share attributable to
Owens Corning common stockholders (“adjusted EPS”), adjusted pre-tax
earnings and free cash flow. When used to report historical financial
information, reconciliations of these non-GAAP measures to the
corresponding GAAP measures are included in the financial tables of this
press release. Specifically see Table 2 for adjusted EBIT, Table 3 for
adjusted earnings and adjusted EPS, and Table 8 for free cash flow.
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
representative of ongoing operations. The non-GAAP financial measures
resulting from these adjustments (including adjusted EBIT, adjusted
earnings, adjusted EPS and adjusted pre-tax earnings) 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. Management
believes that these adjustments result in a measure that provides a
useful representation of its operational performance; however 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 GAAP.
Free cash flow is a non-GAAP liquidity measure used by investors,
financial analysts and management to help evaluate the company's ability
to use cash to pursue opportunities that enhance shareholder value. Free
cash flow is not a measure of residual cash flow available for
discretionary expenditures due to the company’s mandatory debt service
requirements. Free cash flow is used internally by the company for
various purposes, including reporting results of operations to the Board
of Directors of the company and analysis of performance. Management
believes that this measure provides a useful representation of our
operational performance and liquidity; however the measure should not be
considered in isolation or as a substitute for net cash flow provided by
operating activities as prepared in accordance with GAAP.
When the company provides forward-looking expectations for non-GAAP
measures (adjusted EBIT and adjusted pre-tax earnings), the most
comparable GAAP measures and a reconciliation between the non-GAAP
expectations and the corresponding GAAP measures are generally not
available without unreasonable effort due to the variability, complexity
and limited visibility of the adjusting items that would be excluded
from the non-GAAP measures in future periods. The variability in timing
and amount of adjusting items could have significant and unpredictable
effect on our future GAAP results.
Forward Looking Statements
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 and
actual results may differ materially from those results projected in the
statements. These risks, uncertainties and other factors include,
without limitation: relationships with key customers; levels of
residential and commercial construction activity; competitive and
pricing factors; levels of global industrial production; demand for our
products; industry and economic conditions that affect the market and
operating conditions of our customers, suppliers or lenders; domestic
and international economic and political conditions, including new
legislation or other governmental actions; foreign exchange and
commodity price fluctuations, our level of indebtedness; weather
conditions; availability and cost of credit; availability and cost of
energy and raw materials; issues involving implementation and protection
of information technology systems; labor disputes; legal and regulatory
proceedings, including litigation and environmental actions; our ability
to utilize net operating loss carry-forwards; research and development
activities and intellectual property protection; interest rate movements;
uninsured losses; issues related to acquisitions, divestitures and
joint ventures; achievement of expected synergies, cost reductions
and/or productivity improvements; defined benefit plan funding
obligations; 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 October 26, 2016, and is subject to change. The
company does not undertake any duty to update or revise forward-looking
statements except as required by federal securities laws. Any
distribution of this news release after that date is not intended and
should not be construed as updating or confirming such information.
Owens Corning Investor Relations News
|
|
|
|
Table 1
|
Owens Corning and Subsidiaries
|
Consolidated Statements of Earnings
|
(unaudited)
|
(in millions, except per share amounts)
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
September 30,
|
|
September 30,
|
|
2016
|
2015
|
|
2016
|
2015
|
NET SALES
|
$
|
1,518
|
|
$
|
1,447
|
|
|
$
|
4,294
|
|
$
|
4,053
|
|
COST OF SALES
|
1,144
|
|
1,107
|
|
|
3,232
|
|
3,196
|
|
Gross margin
|
374
|
|
340
|
|
|
1,062
|
|
857
|
|
OPERATING EXPENSES
|
|
|
|
|
|
Marketing and administrative expenses
|
141
|
|
130
|
|
|
426
|
|
389
|
|
Science and technology expenses
|
20
|
|
18
|
|
|
60
|
|
53
|
|
Other expenses (income), net
|
6
|
|
(4
|
)
|
|
13
|
|
5
|
|
Total operating expenses
|
167
|
|
144
|
|
|
499
|
|
447
|
|
EARNINGS BEFORE INTEREST AND TAXES
|
207
|
|
196
|
|
|
563
|
|
410
|
|
Interest expense, net
|
28
|
|
28
|
|
|
80
|
|
80
|
|
Loss (gain) on extinguishment of debt
|
1
|
|
—
|
|
|
1
|
|
(5
|
)
|
EARNINGS BEFORE TAXES
|
178
|
|
168
|
|
|
482
|
|
335
|
|
Income tax expense
|
65
|
|
55
|
|
|
172
|
|
112
|
|
Equity in net earnings of affiliates
|
—
|
|
—
|
|
|
1
|
|
1
|
|
NET EARNINGS
|
113
|
|
113
|
|
|
311
|
|
224
|
|
Net earnings attributable to noncontrolling interests
|
1
|
|
1
|
|
|
4
|
|
3
|
|
NET EARNINGS ATTRIBUTABLE TO OWENS CORNING
|
$
|
112
|
|
$
|
112
|
|
|
$
|
307
|
|
$
|
221
|
|
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO OWENS CORNING COMMON
STOCKHOLDERS
|
|
|
|
|
|
Basic
|
$
|
0.98
|
|
$
|
0.96
|
|
|
$
|
2.67
|
|
$
|
1.88
|
|
Diluted
|
$
|
0.97
|
|
$
|
0.95
|
|
|
$
|
2.65
|
|
$
|
1.87
|
|
Dividend
|
$
|
0.18
|
|
$
|
0.17
|
|
|
$
|
0.54
|
|
$
|
0.51
|
|
WEIGHTED AVERAGE COMMON SHARES
|
|
|
|
|
|
Basic
|
114.1
|
|
117.2
|
|
|
114.9
|
|
117.5
|
|
Diluted
|
115.4
|
|
118.3
|
|
|
116.0
|
|
118.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 2
|
Owens Corning and Subsidiaries
|
EBIT Reconciliation Schedules
|
(unaudited)
|
|
Adjusting items are shown in the table below (in millions):
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
September 30,
|
|
September 30,
|
|
2016
|
2015
|
|
2016
|
2015
|
Restructuring costs
|
$
|
(5
|
)
|
$
|
(2
|
)
|
|
$
|
(8
|
)
|
$
|
(4
|
)
|
Acquisition-related costs for InterWrap and Ahlstrom transactions
|
(4
|
)
|
—
|
|
|
(8
|
)
|
—
|
|
Recognition of InterWrap inventory fair value step-up
|
(2
|
)
|
—
|
|
|
(10
|
)
|
—
|
|
Total adjusting items
|
$
|
(11
|
)
|
$
|
(2
|
)
|
|
$
|
(26
|
)
|
$
|
(4
|
)
|
|
|
|
|
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,
|
|
2016
|
2015
|
|
2016
|
2015
|
NET EARNINGS ATTRIBUTABLE TO OWENS CORNING
|
$
|
112
|
|
$
|
112
|
|
|
$
|
307
|
|
$
|
221
|
|
Less: Net earnings attributable to noncontrolling interests
|
1
|
|
1
|
|
|
4
|
|
3
|
|
NET EARNINGS
|
113
|
|
113
|
|
|
311
|
|
224
|
|
Equity in net earnings of affiliates
|
—
|
|
—
|
|
|
1
|
|
1
|
|
Income tax expense
|
65
|
|
55
|
|
|
172
|
|
112
|
|
EARNINGS BEFORE TAXES
|
178
|
|
168
|
|
|
482
|
|
335
|
|
Interest expense, net
|
28
|
|
28
|
|
|
80
|
|
80
|
|
Loss (gain) on extinguishment of debt
|
1
|
|
—
|
|
|
1
|
|
(5
|
)
|
EARNINGS BEFORE INTEREST AND TAXES
|
207
|
|
196
|
|
|
563
|
|
410
|
|
Less: adjusting items from above
|
(11
|
)
|
(2
|
)
|
|
(26
|
)
|
(4
|
)
|
ADJUSTED EBIT
|
$
|
218
|
|
$
|
198
|
|
|
$
|
589
|
|
$
|
414
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 3
Owens Corning and Subsidiaries
EPS
Reconciliation Schedules
(unaudited)
(in
millions, except per share data)
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
|
|
September 30,
|
|
September 30,
|
|
2016
|
2015
|
|
2016
|
2015
|
RECONCILIATION TO ADJUSTED EARNINGS
|
|
|
|
|
|
Net earnings attributable to Owens Corning
|
$
|
112
|
|
$
|
112
|
|
|
$
|
307
|
|
$
|
221
|
|
Adjustment to remove adjusting items
|
11
|
|
2
|
|
|
26
|
|
4
|
|
Adjustment to remove tax benefit on adjusting items (a)
|
(1
|
)
|
—
|
|
|
(6
|
)
|
(1
|
)
|
Adjustment to tax expense to reflect pro forma tax rate (b)
|
3
|
|
(1
|
)
|
|
10
|
|
1
|
|
ADJUSTED EARNINGS
|
$
|
125
|
|
$
|
113
|
|
|
$
|
337
|
|
$
|
225
|
|
|
|
|
|
|
|
RECONCILIATION TO ADJUSTED DILUTED EARNINGS PER SHARE
ATTRIBUTABLE TO OWENS CORNING COMMON STOCKHOLDERS
|
|
|
|
|
|
DILUTED EARNINGS PER COMMON SHARE ATTRIBUTABLE TO OWENS CORNING
COMMON STOCKHOLDERS
|
$
|
0.97
|
|
$
|
0.95
|
|
|
$
|
2.65
|
|
$
|
1.87
|
|
Adjustment to remove adjusting items
|
0.10
|
|
0.02
|
|
|
0.22
|
|
0.04
|
|
Adjustment to remove tax benefit on adjusting items
|
(0.01
|
)
|
—
|
|
|
(0.05
|
)
|
(0.01
|
)
|
Adjustment to tax expense to reflect pro forma tax rate (b)
|
0.03
|
|
(0.01
|
)
|
|
0.09
|
|
0.01
|
|
ADJUSTED DILUTED EARNINGS PER SHARE ATTRIBUTABLE TO OWENS CORNING
COMMON STOCKHOLDERS
|
$
|
1.09
|
|
$
|
0.96
|
|
|
$
|
2.91
|
|
$
|
1.91
|
|
|
|
|
|
|
|
RECONCILIATION TO DILUTED SHARES OUTSTANDING
|
|
|
|
|
|
Weighted-average number of shares outstanding used for basic
earnings per share
|
114.1
|
|
117.2
|
|
|
114.9
|
|
117.5
|
|
Non-vested restricted and performance shares
|
0.9
|
|
0.7
|
|
|
0.8
|
|
0.5
|
|
Options to purchase common stock
|
0.4
|
|
0.4
|
|
|
0.3
|
|
0.4
|
|
Weighted-average number of shares outstanding and common equivalent
shares used for diluted earnings per share
|
115.4
|
|
118.3
|
|
|
116.0
|
|
118.4
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
The tax impact of adjusting items is based on our expected tax
accounting treatment and rate for the jurisdiction of each adjusting
item.
|
(b)
|
|
To compute adjusted earnings, we apply a full year pro forma
effective tax rate to each quarter presented. For 2016, we have used
a full year pro forma effective tax rate of 33%, which is the
mid-point of our 2016 effective tax rate guidance of 32% to 34%. For
comparability, in 2015, we have used an effective tax rate of 33%,
which was our 2015 effective tax rate excluding the reversal
(recorded in the fourth quarter of 2015) of a valuation allowance
against certain Canadian net deferred tax assets.
|
|
|
|
|
|
|
|
Table 4
|
Owens Corning and Subsidiaries
|
Consolidated Balance Sheets
|
(unaudited)
|
(in millions, except per share data)
|
|
|
|
|
|
September 30,
|
|
December 31,
|
ASSETS
|
2016
|
|
2015
|
CURRENT ASSETS
|
|
|
|
Cash and cash equivalents
|
$
|
110
|
|
|
$
|
96
|
|
Receivables, less allowances of $10 at September 30, 2016 and $8 at
December 31, 2015
|
796
|
|
|
709
|
|
Inventories
|
729
|
|
|
644
|
|
Assets held for sale
|
13
|
|
|
12
|
|
Other current assets
|
54
|
|
|
47
|
|
Total current assets
|
1,702
|
|
|
1,508
|
|
Property, plant and equipment, net
|
3,090
|
|
|
2,956
|
|
Goodwill
|
1,338
|
|
|
1,167
|
|
Intangible assets, net
|
1,146
|
|
|
999
|
|
Deferred income taxes
|
369
|
|
|
492
|
|
Other non-current assets
|
231
|
|
|
222
|
|
TOTAL ASSETS
|
$
|
7,876
|
|
|
$
|
7,344
|
|
LIABILITIES AND EQUITY
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
Accounts payable and accrued liabilities
|
$
|
999
|
|
|
$
|
912
|
|
Short-term debt
|
1
|
|
|
6
|
|
Long-term debt – current portion
|
3
|
|
|
163
|
|
Total current liabilities
|
1,003
|
|
|
1,081
|
|
Long-term debt, net of current portion
|
2,160
|
|
|
1,702
|
|
Pension plan liability
|
321
|
|
|
397
|
|
Other employee benefits liability
|
237
|
|
|
240
|
|
Deferred income taxes
|
36
|
|
|
8
|
|
Other liabilities
|
182
|
|
|
137
|
|
Redeemable equity
|
2
|
|
|
—
|
|
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
|
3,973
|
|
|
3,965
|
|
Accumulated earnings
|
1,299
|
|
|
1,055
|
|
Accumulated other comprehensive deficit
|
(632
|
)
|
|
(670
|
)
|
Cost of common stock in treasury (c)
|
(748
|
)
|
|
(612
|
)
|
Total Owens Corning stockholders’ equity
|
3,893
|
|
|
3,739
|
|
Noncontrolling interests
|
42
|
|
|
40
|
|
Total equity
|
3,935
|
|
|
3,779
|
|
TOTAL LIABILITIES AND EQUITY
|
$
|
7,876
|
|
|
$
|
7,344
|
|
|
|
|
|
|
|
|
|
(a)
|
|
10 shares authorized; none issued or outstanding at September 30,
2016, and December 31, 2015.
|
(b)
|
|
400 shares authorized; 135.5 issued and 113.6 outstanding at
September 30, 2016; 135.5 issued and 115.9 outstanding at December
31, 2015
|
(c)
|
|
21.9 shares at September 30, 2016, and 19.6 shares at December 31,
2015
|
|
|
|
|
|
Table 5
|
Owens Corning and Subsidiaries
|
Consolidated Statements of Cash Flows
|
(unaudited)
|
(in millions)
|
|
|
|
Nine Months Ended
|
|
September 30,
|
|
2016
|
2015
|
NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES
|
|
|
Net earnings
|
$
|
311
|
|
$
|
224
|
|
Adjustments to reconcile net earnings to cash provided by operating
activities:
|
|
|
Depreciation and amortization
|
242
|
|
224
|
|
Gain on sale of fixed assets
|
—
|
|
(1
|
)
|
Deferred income taxes
|
127
|
|
75
|
|
Provision for pension and other employee benefits liabilities
|
6
|
|
10
|
|
Stock-based compensation expense
|
25
|
|
22
|
|
Other non-cash
|
(7
|
)
|
(6
|
)
|
Loss/(gain) on extinguishment of debt
|
1
|
|
(5
|
)
|
Changes in operating assets and liabilities
|
27
|
|
(76
|
)
|
Pension fund contribution
|
(60
|
)
|
(59
|
)
|
Payments for other employee benefits liabilities
|
(14
|
)
|
(16
|
)
|
Other
|
21
|
|
18
|
|
Net cash flow provided by operating activities
|
679
|
|
410
|
|
NET CASH FLOW USED FOR INVESTING ACTIVITIES
|
|
|
Cash paid for property, plant and equipment
|
(281
|
)
|
(266
|
)
|
Proceeds from the sale of assets or affiliates
|
—
|
|
3
|
|
Investment in subsidiaries and affiliates, net of cash acquired
|
(450
|
)
|
—
|
|
Purchases of alloy
|
—
|
|
(8
|
)
|
Proceeds from sale of alloy
|
—
|
|
8
|
|
Other
|
2
|
|
—
|
|
Net cash flow used for investing activities
|
(729
|
)
|
(263
|
)
|
NET CASH FLOW PROVIDED BY (USED FOR) FINANCING ACTIVITIES
|
|
|
Proceeds from long-term debt
|
395
|
|
—
|
|
Proceeds from senior revolving credit and receivables securitization
facilities
|
574
|
|
1,079
|
|
Proceeds from term loan borrowing
|
300
|
|
—
|
|
Payments on term loan borrowing
|
(300
|
)
|
—
|
|
Payments on senior revolving credit and receivables securitization
facilities
|
(514
|
)
|
(1,082
|
)
|
Payments on long-term debt
|
(160
|
)
|
(8
|
)
|
Net decrease in short-term debt
|
(5
|
)
|
(10
|
)
|
Cash dividends paid
|
(61
|
)
|
(58
|
)
|
Purchases of treasury stock
|
(176
|
)
|
(86
|
)
|
Other
|
10
|
|
18
|
|
Net cash flow provided by (used for) financing activities
|
63
|
|
(147
|
)
|
Effect of exchange rate changes on cash
|
1
|
|
(5
|
)
|
Net increase (decrease) in cash and cash equivalents
|
14
|
|
(5
|
)
|
Cash and cash equivalents at beginning of period
|
96
|
|
67
|
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
$
|
110
|
|
$
|
62
|
|
|
|
|
|
|
|
|
|
|
|
Table 6
|
Owens Corning and Subsidiaries
|
Segment 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
|
|
September 30,
|
September 30,
|
|
2016
|
2015
|
2016
|
2015
|
Net sales
|
$
|
496
|
|
$
|
486
|
|
$
|
1,486
|
|
$
|
1,457
|
|
% change from prior year
|
2
|
%
|
-1
|
%
|
2
|
%
|
-1
|
%
|
EBIT
|
$
|
61
|
|
$
|
61
|
|
$
|
199
|
|
$
|
188
|
|
EBIT as a % of net sales
|
12
|
%
|
13
|
%
|
13
|
%
|
13
|
%
|
Depreciation and amortization expense
|
$
|
36
|
|
$
|
29
|
|
$
|
103
|
|
$
|
92
|
|
|
|
|
Insulation
|
The table below provides a summary of net sales, EBIT and
depreciation and amortization expense for the Insulation segment
(in millions):
|
|
|
|
|
Three Months Ended
|
Nine Months Ended
|
|
September 30,
|
September 30,
|
|
2016
|
2015
|
2016
|
2015
|
Net sales
|
$
|
476
|
|
$
|
502
|
|
$
|
1,275
|
|
$
|
1,332
|
|
% change from prior year
|
-5
|
%
|
11
|
%
|
-4
|
%
|
6
|
%
|
EBIT
|
$
|
38
|
|
$
|
58
|
|
$
|
83
|
|
$
|
90
|
|
EBIT as a % of net sales
|
8
|
%
|
12
|
%
|
7
|
%
|
7
|
%
|
Depreciation and amortization expense
|
$
|
26
|
|
$
|
25
|
|
$
|
78
|
|
$
|
75
|
|
|
|
|
Roofing
|
The table below provides a summary of net sales, EBIT and
depreciation and amortization expense for the Roofing segment (in
millions):
|
|
|
|
|
Three Months Ended
|
Nine Months Ended
|
|
September 30,
|
September 30,
|
|
2016
|
2015
|
2016
|
2015
|
Net sales
|
$
|
603
|
|
$
|
502
|
|
$
|
1,711
|
|
$
|
1,398
|
|
% change from prior year
|
20
|
%
|
6
|
%
|
22
|
%
|
-1
|
%
|
EBIT
|
$
|
146
|
|
$
|
103
|
|
$
|
388
|
|
$
|
213
|
|
EBIT as a % of net sales
|
24
|
%
|
21
|
%
|
23
|
%
|
15
|
%
|
Depreciation and amortization expense
|
$
|
13
|
|
$
|
10
|
|
$
|
34
|
|
$
|
29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 7
Owens Corning and Subsidiaries
Corporate,
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
|
|
September 30,
|
|
September 30,
|
|
2016
|
2015
|
|
2016
|
2015
|
Restructuring costs
|
$
|
(5
|
)
|
$
|
(2
|
)
|
|
$
|
(8
|
)
|
$
|
(4
|
)
|
Acquisition-related costs for InterWrap and Ahlstrom transactions
|
(4
|
)
|
—
|
|
|
(8
|
)
|
—
|
|
Recognition of InterWrap inventory fair value step-up
|
(2
|
)
|
—
|
|
|
(10
|
)
|
—
|
|
General corporate expense and other
|
(27
|
)
|
(24
|
)
|
|
(81
|
)
|
(77
|
)
|
EBIT
|
$
|
(38
|
)
|
$
|
(26
|
)
|
|
$
|
(107
|
)
|
$
|
(81
|
)
|
Depreciation and amortization
|
$
|
9
|
|
$
|
9
|
|
|
$
|
27
|
|
$
|
28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 8
Owens Corning and Subsidiaries
Free
Cash Flow Reconciliation Schedule
(unaudited)
The reconciliation from net cash flow provided by operating activities
to free cash flow is shown in the table below (in millions):
|
Three Months Ended
|
|
Nine Months Ended
|
|
September 30,
|
|
September 30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES
|
$
|
353
|
|
|
$
|
304
|
|
|
$
|
679
|
|
|
$
|
410
|
|
Less: Cash paid for property, plant and equipment
|
(94
|
)
|
|
(89
|
)
|
|
(281
|
)
|
|
(266
|
)
|
Less: Purchases of alloy
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(8
|
)
|
FREE CASH FLOW
|
$
|
259
|
|
|
$
|
214
|
|
|
$
|
398
|
|
|
$
|
136
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20161026005327/en/
Source: Owens Corning