By Ben Glickman
Owens Corning’s profit rose after storms lifted results in its roofing business in the second quarter. Here’s what you need to know.
PROFIT: The building-materials maker posted a profit of $345 million, up from $343 million a year earlier. Analysts polled by FactSet expected earnings of $297.9 million.
ADJUSTED EARNINGS: Stripping out certain one-time expenses, Owens Corning posted adjusted earnings of $4.22 a share. Analysts polled by FactSet expected adjusted per-share earnings of $3.25.
REVENUE: Owens Corning’s revenue fell 1% to $2.563 billion from $2.601 billion in the year-ago quarter. Analysts polled by FactSet expected revenue of $2.54 billion.
WHAT WE WATCHED
DEMAND: Inflation, which the company has said for several quarters weighs on demand for its products, is moderating, though the company said rising interest rates and geopolitical tension are still expected to hamper economic growth. The company forecasts “relatively stable” demand for its products in the near term.
STORM DAMAGE: Elevated storm activity in the quarter lifted roofing sales, which rose 10% compared to a year ago. The last several months have seen multiple major wind and hail storms across the U.S., which can damage houses and increase the need for repairs.
PRICING: The company continued to raise prices for its products to offset increased costs of its inputs, but the company said those price hikes weren’t enough to offset a consumer pullback in its composites and insulation businesses. Sales declined in both of those segments on lower sales volumes.
OUTLOOK: The company said that despite slower economic growth, it expects its end markets to be stable in the near future. Still, next quarter, Owens Corning anticipates sales to be roughly flat compared to the prior year.
Write to Ben Glickman at ben.glickman@wsj.com
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https://www.marketwatch.com/story/owens-corning-profit-rises-after-storms-boost-roofing-sales-earnings-review-f5173262
