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Released February 12, 2015 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Owens Corning (NYSE:OC) (Toledo, Ohio) expects to spend $55 million to complete a non-woven manufacturing plant in North Carolina, company executives said Wednesday.
The company said it expects capital expenditures (capex) to total $350 million for the year. Owens Corning accounts for depreciation and amortization in its capex. "Capital spending in excess of depreciation and amortization is primarily due to the construction of our non-woven composites plant," the company said in a regulatory filing with the Securities Exchange Commission.
Industrial Info is tracking 28 active Owens Corning projects worth $203.5 million. These include 22 projects, valued at $55 million, that are under construction; three projects, valued at $130 million, that are in the engineering stage; and three projects, valued at $19 million, that are in the planning stage, where various factors could change those numbers.
The glass fiber non-woven manufacturing plant in Gastonia, North Carolina, has a total investment value of $120 million. The 150,000-square-foot facility will include a state-of-the-art production line, coating line and research & development lab to serve the global building materials market. Project completion is set for fourth-quarter 2015.
Owens Corning reported $33 million in fourth-quarter 2014 net earnings, compared with $82 million in the same quarter a year earlier. On an adjusted basis, which excludes certain charges, fourth-quarter earnings totaled $55 million, compared with $52 million a year earlier. The company reported $1.26 billion in fourth-quarter net sales, compared with $1.28 billion a year earlier.
For all of 2014, net earnings totaled $226 million, up from $206 million in 2013. Sales in 2014 were flat at $5.3 billion. Capital expenditures totaled $363 million in 2014.
Fourth-quarter net sales for the company's Insulation segment totaled $490 million, up from $466 million in fourth-quarter 2013. The Composites segment reported $464 million in net sales, nearly flat with those from a year earlier, while the Roofing segment reported $340 in net sales, down from $381 million a year earlier.
Looking to 2015, company executives said they expect to benefit from continued improvements in the U.S. housing market and moderate global growth. Chief Financial Officer Michael McMurray said during the company's earnings conference call that the U.S. is expected to see housing starts for 1.1 million to 1.2 million units in 2015.
The Insulation segment will benefit from growth in new U.S, residential construction, improved pricing and operating leverage, McMurray said.
The glass fiber market will continue to grow in 2015, but at less than industrial production rates, he said, partly because of the impact of the slowdown in the Oil and Gas Industry.
Lower asphalt prices, as a result of last year's plunge in oil prices, will benefit the company's Roofing segment to the tune of $50 million in 2015, McMurray said. Prices for asphalt, which goes into roof shingles, usually trails oil prices by three to four months, he said.
Composites also will see improvements in 2015 as a result of higher prices, but the impact of the stronger U.S. dollar against foreign currencies will cost the company $20 million in earnings before interest and taxes (EBIT).
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
The company said it expects capital expenditures (capex) to total $350 million for the year. Owens Corning accounts for depreciation and amortization in its capex. "Capital spending in excess of depreciation and amortization is primarily due to the construction of our non-woven composites plant," the company said in a regulatory filing with the Securities Exchange Commission.
Industrial Info is tracking 28 active Owens Corning projects worth $203.5 million. These include 22 projects, valued at $55 million, that are under construction; three projects, valued at $130 million, that are in the engineering stage; and three projects, valued at $19 million, that are in the planning stage, where various factors could change those numbers.
The glass fiber non-woven manufacturing plant in Gastonia, North Carolina, has a total investment value of $120 million. The 150,000-square-foot facility will include a state-of-the-art production line, coating line and research & development lab to serve the global building materials market. Project completion is set for fourth-quarter 2015.
Owens Corning reported $33 million in fourth-quarter 2014 net earnings, compared with $82 million in the same quarter a year earlier. On an adjusted basis, which excludes certain charges, fourth-quarter earnings totaled $55 million, compared with $52 million a year earlier. The company reported $1.26 billion in fourth-quarter net sales, compared with $1.28 billion a year earlier.
For all of 2014, net earnings totaled $226 million, up from $206 million in 2013. Sales in 2014 were flat at $5.3 billion. Capital expenditures totaled $363 million in 2014.
Fourth-quarter net sales for the company's Insulation segment totaled $490 million, up from $466 million in fourth-quarter 2013. The Composites segment reported $464 million in net sales, nearly flat with those from a year earlier, while the Roofing segment reported $340 in net sales, down from $381 million a year earlier.
Looking to 2015, company executives said they expect to benefit from continued improvements in the U.S. housing market and moderate global growth. Chief Financial Officer Michael McMurray said during the company's earnings conference call that the U.S. is expected to see housing starts for 1.1 million to 1.2 million units in 2015.
The Insulation segment will benefit from growth in new U.S, residential construction, improved pricing and operating leverage, McMurray said.
The glass fiber market will continue to grow in 2015, but at less than industrial production rates, he said, partly because of the impact of the slowdown in the Oil and Gas Industry.
Lower asphalt prices, as a result of last year's plunge in oil prices, will benefit the company's Roofing segment to the tune of $50 million in 2015, McMurray said. Prices for asphalt, which goes into roof shingles, usually trails oil prices by three to four months, he said.
Composites also will see improvements in 2015 as a result of higher prices, but the impact of the stronger U.S. dollar against foreign currencies will cost the company $20 million in earnings before interest and taxes (EBIT).
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
