Owens Corning Targets $385 Growth Capex for 2016

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Researched by Industrial Info Resources (Sugar Land, Texas)--Flush with a 46% jump in net earnings in 2015, Owens Corning (NYSE: OC) (Toledo, Ohio) has earmarked $385 million for capital addition expenditures for 2016, according to executives with the insulation, roofing, and fiberglass composites manufacturer and marketer. Industrial Info is tracking seven Owens Corning growth-related projects, ranging in value from $3 million to $120 million.

The company reported $330 million net earnings for 2015, compared with $208 million in 2014. Net sales for this year totaled $5.35 billion, compared with $5.326 million in 2014.

Capital addition expenditures in 2015 totaled $403 million, reflecting the construction of a glass fiber non-woven manufacturing plant in Gastonia, North Carolina. Construction of the $120 million project, which comprises a 150,000 square-foot facility, kicked off in early 2014.

Chief Executive Officer Mike Thaman said the Gastonia plant operations are now in the start-up phase.

Thaman said the company saw earnings growth last year in all three of its business segments; insulation, composites and roofing. Earnings by the Insulation segment grew by nearly 50% last year, but growth this year could be slightly weaker. Earnings by the Composites sector will rise amid continued growth in the glass fiber market, while Roofing segment earnings will see "modest" growth. He noted the Roofing segment, which produces petroleum-based asphalt shingles, benefitted from a $70 million drop in asphalt costs.

Looking forward, Chief Financial Officer Michael McMurray said the U.S. is expected to see construction begin on 1.2 million new housing units this year, which is similar to 2015 levels.

For fourth-quarter 2015, the company reported $110 million in net earnings, compared with $33 million in fourth-quarter 2014. Sales revenue for the just-ended quarter totaled nearly $1.3 billion, compared with $1.26 billion a year earlier.

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