In the second quarter, roofing business for Owens Corning experienced a lift in results due to storms, resulting in a rise in profit. The building-materials maker posted a profit of $345 million, up from $343 million in the same period last year. Analysts expected earnings of $297.9 million.
Adjusted earnings for Owens Corning were $4.22 per share, after stripping out certain one-time expenses. This exceeded analysts’ expectations of adjusted per-share earnings of $3.25.
However, the company’s revenue saw a slight decline of 1% to $2.563 billion compared to $2.601 billion in the year-ago quarter. Analysts predicted revenue of $2.54 billion.
Key Factors Watched
Demand
Inflation has been a concern for Owens Corning, impacting the demand for its products over several quarters. The company stated that while inflation is moderating, rising interest rates and geopolitical tension could still hinder economic growth. Despite this, Owens Corning foresees “relatively stable” demand for its products in the near term.
Storm Damage
Elevated storm activity during the quarter resulted in a 10% increase in roofing sales compared to the previous year. Multiple wind and hail storms across the U.S. have caused damage to houses and led to an increase in repair needs.
Pricing
To offset higher input costs, Owens Corning continued to raise prices for its products. However, these price increases were not sufficient to counteract a consumer pullback in its composites and insulation businesses. Consequently, sales volumes declined in both segments.
Outlook
Despite slower economic growth, Owens Corning expects its end markets to remain stable in the near future. However, the company projects that next quarter’s sales will be relatively flat compared to the previous year.
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