Owens Corning profit jumps while revenue is flat; O-I sees 1Q earnings fall

4/24/2013
BY KRIS TURNER
BLADE BUSINESS WRITER
  • OC-HEADQUARTERS

    BLADE

    • Owens Corning’s earnings were up in the first quarter of 2013, while Owens-Illinois Inc. did not profit as much as last year.

    The two Toledo-area companies discussed their earnings Wednesday during conference calls.

    Owens Corning reported improved earnings of $22 million, or 18 cents per share. The Toledo-based building products company lost $46 million, or 38 cents per share, during the same period last year.

    The company's quarterly adjusted earnings were $35 million, or 29 cents per share. That’s an increase from $11 million, or 9 cents per share, in the first quarter of 2012.

    Its sales were $1.3 billion, which is about the same as last year. The sale of building materials improved by $18 million, and roofing sales increased by $19 million. Insulation sales were down $1 million from last year.

    “I’m satisfied with our overall progress in the quarter,” OC Chairman and Chief Executive Officer Mike Thaman said during the call.

    After Wednesday morning’s earnings announcement, OC’s stock climbed $2.01 per share, or 5 percent, to $42.13.

    Owens-Illinois said Europe’s economic problems hurt its first-quarter performance.

    The Perrysburg-based glass container maker reported earnings of $79 million, or 48 cents a share, after the market closed Tuesday. Last year it reported earnings of $122 million, or 73 cents a share, during the first quarter.

    When adjusted for items the company does not consider representative of ongoing operations, earnings were $99 million, or 60 cents per share.

    “We have sharpened our focus on initiatives that will strengthen our core business and enhance our competitive advantage,” Chairman and Chief Executive Officer Al Stroucken said during Wednesday’s call.

    O-I said sales in the first quarter were $1.64 billion, down from $1.74 billion in 2012. Shipments decreased 5 percent because of fewer shipping days in the quarter and European markets. European, North American, South American, and Asian sales all declined, with the European division taking the biggest hit at $55 million.

    Focus areas the company will target to improve profits include reducing structural costs, European optimization programs, and disciplined capital allocation, Mr. Stroucken said.

    O-I stock fell 51 cents, or 2 percent, to close at $25.30 Wednesday.

    Contact Kris Turner at kturner@theblade.com or 419-724-6103.