Profit plunges, revenue rises 7% for year at Owens Corning

Weakness in the European market and a surplus of materials contributed to a dramatic drop in profit for Owens Corning in 2011.

The Toledo company, which released its annual report Wednesday, posted a profit of $276 million, or $2.23 a share, for 2011. In 2010, it earned $933 million, or $7.37 a share.

The company's profits fell despite a 7 percent increase in sales, to $5.3 billion from $5 billion in 2010.

"We saw some deceleration of global and industrial production, especially in Europe," Mike Thaman, chairman and chief executive officer, said during a conference call with investors.

Owens Corning makes roofing shingles, insulation, and other building materials.

The company reported a fourth-quarter profit of $50 million, or $0.41 a share, compared with a loss of $110 million, or $0.89 a share in the same period a year earlier.

In a statement released by the company, Mr. Thaman said the company experienced revenue increases in all of its businesses despite "challenging market conditions."

Company executives said during the conference call that they expect a better year in 2012.

"We anticipate improved housing starts in the U.S. and modest growth in the global economy," Mr. Thaman said.

Company officials are trying to improve the profitability of the insulation segment of the company and hope for a continued increase in new roof construction and repair.

Duncan Palmer, chief financial officer, said officials also are working to reduce the production cost of composites.

The company's stock closed Wednesday on the New York Stock Exchange at $30.43 a share, off $2.05.

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