Owens Corning (NYSE: OC), a global building and construction
materials leader, today reported fourth-quarter and full-year 2023
results.
- Reported Net Sales of $9.7 Billion, Down Slightly from Prior
Year
- Expanded 2023 Adjusted EBIT Margins to 19% and Adjusted EBITDA
Margins to 24%
- Delivered Diluted EPS of $13.14 and Adjusted Diluted EPS of
$14.42
- Generated Operating Cash Flow of $1.7 Billion and Free Cash
Flow of $1.2 Billion
- Returned $812 Million, or 68%, of Free Cash Flow to
Shareholders through Dividends and Share Repurchases
“These outstanding results for the fourth quarter and full year
demonstrate the strength of our team, the value of our products,
and the impact of our enterprise strategy to increase the earnings
power of the company and create value for our customers and
shareholders,” said Chair and Chief Executive Officer Brian
Chambers. “Looking ahead, we will continue to focus on delivering
outstanding results in the near-term as we execute the strategic
moves announced last week which will further strengthen our
leadership in building and construction materials and position the
company for long-term success.”
Enterprise Performance
($ in millions, except per share
amounts)
Fourth-Quarter
Full-Year
2023
2022
Change
2023
2022
Change
Net Sales
$2,304
$2,285
$19
1%
$9,677
$9,761
$(84)
(1)%
Net Earnings Attributable to OC
131
124
7
6%
1,196
1,241
(45)
(4)%
Adjusted EBIT
392
333
59
18%
1,805
1,762
43
2%
As a Percent of Net Sales
17%
15%
N/A
N/A
19%
18%
N/A
N/A
Adjusted EBITDA
518
460
58
13%
2,313
2,267
46
2%
As a Percent of Net Sales
22%
20%
N/A
N/A
24%
23%
N/A
N/A
Diluted EPS
1.46
1.32
0.14
11%
13.14
12.70
0.44
3%
Adjusted Diluted EPS
3.21
2.49
0.72
29%
14.42
12.88
1.54
12%
Operating Cash Flow
698
675
23
3%
1,719
1,760
(41)
(2)%
Free Cash Flow
562
535
27
5%
1,193
1,314
(121)
(9)%
Enterprise Strategy
Highlights
- On February 9, Owens Corning announced it entered into a
definitive agreement to acquire Masonite International Corporation,
a leading global provider of interior and exterior doors and door
systems. The addition of Masonite's doors business will strengthen
Owens Corning's position in building and construction materials.
The transaction is expected to close mid-2024.
- Owens Corning also announced on February 9 that it will review
strategic alternatives for its global glass reinforcements
business. This decision to review the business is consistent with
the company's strategy to focus on building and construction
materials. Glass reinforcements generates annual revenue of
approximately $1.3 billion.
- Owens Corning is updating the long-term EBIT margin guide for
the Roofing segment from approximately 20% to mid-20% on
average.
- Owens Corning continues to invest in new product and process
innovation to support customers and generate additional growth. In
2023, it launched 39 new or refreshed products.
- Owens Corning sustained a high level of safety performance in
2023 with a recordable incident rate (RIR) of 0.60.
- Owens Corning continues to be recognized as a leader in
environmental, social, and governance. In the fourth quarter, the
company earned a place on the Dow Jones Sustainability World Index
for the 14th consecutive year.
Cash Returned to
Shareholders
- During 2023, the company returned $812 million to shareholders
through dividends and share repurchases. The company paid dividends
of $188 million and repurchased 5.4 million shares of common stock
for $624 million.
- In December 2023, Owens Corning announced its Board of
Directors declared quarterly cash dividends of $0.60 per common
share, a 15% increase compared with the associated prior quarterly
dividends.
“In 2023, the strength of our earnings and disciplined capital
allocation resulted in $1.2 billion of free cash flow, with 68%
returned to shareholders through share repurchases and dividends,”
said Executive Vice President and Chief Financial Officer Todd
Fister. “As we look forward to 2024, we remain committed to
maintaining our investment grade balance sheet, investing in
attractive acquisitions and capital projects to continue to grow
our earnings power, and returning 50% of free cash to shareholders
over time.”
Other Notable Highlights
- Owens Corning expects to issue its 18th annual Sustainability
Report next month. The report will highlight the company's progress
toward its 2030 sustainability goals.
2023 Segment Performance
Full-Year
- Roofing net sales increased 10% to $4.0 billion in 2023
compared to 2022, with strong year-over-year demand driven
primarily by higher levels of storm activity, in addition to
positive price and favorable mix. EBIT increased $343 million to
$1.2 billion, with 29% EBIT margins and 31% EBITDA margins. The
EBIT improvement was primarily due to positive price, favorable
input costs and delivery, higher volumes, and favorable mix for the
full year.
- Insulation net sales decreased slightly to $3.7 billion in 2023
compared to 2022, primarily due to lower sales volumes in both the
North American residential insulation and technical and global
insulation businesses, which were largely offset by positive price,
favorable delivery costs, and mix. EBIT increased $7 million to
$619 million, with 17% EBIT margins and 23% EBITDA margins, with
positive price and favorable mix more than offsetting the impact of
lower volumes, input cost inflation, higher manufacturing costs,
and planned maintenance downtime and production investments.
- Composites net sales decreased 14% to $2.3 billion in 2023,
primarily due to lower volumes and the net impact of divestitures
and acquisitions. EBIT decreased $256 million to $242 million while
delivering 11% EBIT margins and 18% EBITDA margins. The EBIT
decline was driven by lower demand, primarily in glass
reinforcements, the associated production downtime actions the
company took throughout the year to balance inventories, and the
net impact of divestitures and acquisitions. Input costs were
inflationary for the year, largely offset by favorable delivery
costs.
Fourth-Quarter
- Roofing net sales increased 16% to $928 million in
fourth-quarter 2023 compared with fourth-quarter 2022, with
continued strong demand tied to the mild weather extending the
roofing season in many regions and strong components attachment
rate, as well as favorable mix and positive price. EBIT increased
$116 million to $284 million, expanding EBIT margins to 31% and
EBITDA margins to 32%. The EBIT improvement was due to higher
volumes, favorable input and delivery costs, as well as positive
price, favorable mix, and favorable manufacturing costs.
- Insulation net sales decreased 3% to $931 million in
fourth-quarter 2023 compared with fourth-quarter 2022. The change
was primarily due to lower volumes in both the North American
residential insulation and technical and global insulation
businesses, partially offset by favorable price and mix. EBIT
decreased $3 million to $150 million, with 16% EBIT margins and 22%
EBITDA margins, as the year-over-year impact of lower volumes was
largely offset by positive price realization.
- Composites net sales decreased 13% to $514 million in
fourth-quarter 2023 compared with fourth-quarter 2022, primarily
due to lower volumes and price declines resulting from lower spot
prices in glass reinforcements. EBIT decreased $38 million to $26
million, with EBIT margins of 5% and EBITDA margins of 13%. In
addition to price, the impact of lower demand in glass
reinforcements and the actions the company took to balance
inventories with corresponding production downtime contributed to
the year-over-year EBIT declines, which were partially offset by
favorable manufacturing performance.
First-Quarter and Full-Year 2024
Outlook
- The key economic factors that impact the company’s business are
residential repair and remodeling activity, U.S. housing starts,
global commercial construction activity, and global industrial
production.
- Macroeconomic trends outside of the U.S. and elevated interest
rates continue to result in slow global economic growth, but the
company expects most of its building and construction end markets
to be relatively stable in the near term.
- For the first-quarter 2024, the company expects overall
performance to result in net sales slightly below the first quarter
of 2023, while generating mid-teens margins.
Current 2024 financial outlook is presented below.
General Corporate Expenses
$240 million to $250 million
Interest Expense
$70 million to $80 million
Effective Tax Rate on Adjusted
Earnings
24% to 26%
Capital Additions
Approximately $550 million
Depreciation and Amortization
Approximately $550 million
The above outlook excludes the impact of any acquisitions or
divestitures not yet completed.
Fourth-Quarter 2023 Conference Call and
Presentation Wednesday, February 14, 2024 9 a.m. Eastern
Time
All Callers
- Live dial-in telephone number: U.S. 1.833.470.1428; Canada
1.833.950.0062; and other international +1.404.975.4839.
- Entry number: 498688 (Please dial in 10-15 minutes before
conference call start time)
- Live webcast: https://events.q4inc.com/attendee/569569128
Telephone and Webcast
Replay
- Telephone replay will be available one hour after the end of
the call through February 21, 2024. In the U.S., call
1.866.813.9403. In Canada, call 1.226.828.7578. In other
international locations, call +1.929.458.6194.
- Conference replay number: 943465
- Webcast replay will be available for one year using the above
link.
About Owens Corning
Owens Corning is a global building and construction materials
leader committed to building a sustainable future through material
innovation. Our three integrated businesses – Roofing, Insulation,
and Composites – provide durable, sustainable, energy-efficient
solutions that leverage our unique material science, manufacturing,
and market knowledge to help our customers win and grow. We are
global in scope, human in scale with approximately 18,000 employees
in 30 countries dedicated to generating value for our customers and
shareholders, and making a difference in the communities where we
work and live. Founded in 1938 and based in Toledo, Ohio, USA,
Owens Corning posted 2023 sales of $9.7 billion. For more
information, visit www.owenscorning.com.
Use of Non-GAAP Measures
Owens Corning uses non-GAAP measures in its earnings press
release that are intended to supplement investors' understanding of
the company's financial information. These non-GAAP measures
include EBIT, adjusted EBIT, EBITDA, adjusted EBITDA, adjusted
earnings, adjusted diluted earnings per share attributable to Owens
Corning common stockholders ("adjusted EPS"), adjusted pre-tax
earnings, and free cash flow. When used to report historical
financial information, reconciliations of these non-GAAP measures
to the corresponding GAAP measures are included in the financial
tables of this press release. Specifically, see Table 2 for EBIT,
adjusted EBIT, EBITDA, and adjusted EBITDA, Table 7 for adjusted
earnings and adjusted EPS, and Table 8 for free cash flow.
For purposes of internal review of Owens Corning's
year-over-year operational performance, management excludes from
net earnings attributable to Owens Corning certain items it
believes are not representative of ongoing operations. The non-GAAP
financial measures resulting from these adjustments (including
adjusted EBIT, adjusted EBITDA, adjusted earnings, adjusted EPS,
and adjusted pre-tax earnings) are used internally by Owens Corning
for various purposes, including reporting results of operations to
the Board of Directors, analysis of performance, and related
employee compensation measures. Management believes that these
adjustments result in a measure that provides a useful
representation of its operational performance; however, the
adjusted measures should not be considered in isolation or as a
substitute for net earnings attributable to Owens Corning as
prepared in accordance with GAAP.
Free cash flow is a non-GAAP liquidity measure used by
investors, financial analysts and management to help evaluate the
company's ability to generate cash to pursue opportunities that
enhance shareholder value. The company defines free cash flow as
net cash flow provided by operating activities, less cash paid for
property, plant and equipment. Free cash flow is not a measure of
residual cash flow available for discretionary expenditures due to
the company's mandatory debt service requirements. Free cash flow
is used internally by the company for various purposes, including
reporting results of operations to the Board of Directors of the
company and analysis of performance.
Management believes that these measures provide a useful
representation of our operational performance and liquidity;
however, the measures should not be considered in isolation or as a
substitute for net cash flow provided by operating activities or
net earnings attributable to Owens Corning as prepared in
accordance with GAAP.
When the company provides forward-looking expectations for
non-GAAP measures, the most comparable GAAP measures and a
reconciliation between the non-GAAP expectations and the
corresponding GAAP measures are generally not available without
unreasonable effort due to the variability, complexity and limited
visibility of the adjusting items that would be excluded from the
non-GAAP measures in future periods. The variability in timing and
amount of adjusting items could have significant and unpredictable
effect on our future GAAP results.
Forward-Looking
Statements
This news release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. These forward-looking
statements are subject to risks, uncertainties and other factors
and actual results may differ materially from any results projected
in the statements. These risks, uncertainties and other factors
include, without limitation: levels of residential and commercial
or industrial construction activity; demand for our products;
industry and economic conditions including, but not limited to,
supply chain disruptions, recessionary conditions, inflationary
pressures, interest rate and financial markets volatility, and the
viability of banks and other financial institutions; availability
and cost of energy and raw materials; levels of global industrial
production; competitive and pricing factors; relationships with key
customers and customer concentration in certain areas; issues
related to acquisitions, divestitures and joint ventures or
expansions, including the planned acquisition of Masonite; climate
change, weather conditions and storm activity; legislation and
related regulations or interpretations, in the United States or
elsewhere; domestic and international economic and political
conditions, policies or other governmental actions, as well as war
and civil disturbance; changes to tariff, trade or investment
policies or laws; uninsured losses, including those from natural
disasters, catastrophes, pandemics, theft or sabotage;
environmental, product-related or other legal and regulatory
liabilities, proceedings or actions; research and development
activities and intellectual property protection; issues involving
implementation and protection of information technology systems;
foreign exchange and commodity price fluctuations; our level of
indebtedness, including the planned acquisition of Masonite; our
liquidity and the availability and cost of credit; our ability to
achieve expected synergies, cost reductions and/or productivity
improvements; the level of fixed costs required to run our
business; levels of goodwill or other indefinite-lived intangible
assets; price volatility in certain wind energy markets in the
U.S.; loss of key employees and labor disputes or shortages; our
ability to complete and successfully integrate the Masonite
acquisition; any material adverse changes in the business of
Masonite; the ability to obtain required regulatory, shareholder or
other third-party approvals and consents and otherwise complete the
Masonite acquisition; our ability to achieve the strategic and
other objectives relating to the Masonite acquisition, including
any expected synergies, and the strategic review of our GR
business; and defined benefit plan funding obligations; and factors
detailed from time to time in the company’s Securities and Exchange
Commission filings. The information in this news release speaks as
of February 14, 2024, and is subject to change. The company does
not undertake any duty to update or revise forward-looking
statements except as required by federal securities laws. Any
distribution of this news release after that date is not intended
and should not be construed as updating or confirming such
information.
Owens Corning Company News / Owens Corning Investor Relations
News
Table 1
Owens Corning and
Subsidiaries
Consolidated Statements of
Earnings
(unaudited)
(in millions, except per share
amounts)
Three Months Ended December
31,
Twelve Months Ended December
31,
2023
2022
2023
2022
NET SALES
$
2,304
$
2,285
$
9,677
$
9,761
COST OF SALES
1,689
1,715
6,994
7,145
Gross margin
615
570
2,683
2,616
OPERATING EXPENSES
Marketing and administrative expenses
219
217
831
803
Science and technology expenses
38
33
123
106
Gain on equity method investment
—
—
—
(130
)
Gain on sale of site
—
—
(189
)
—
Other expense, net
29
141
106
123
Total operating expenses
286
391
871
902
OPERATING INCOME
329
179
1,812
1,714
Non-operating expense (income)
146
(3
)
145
(9
)
EARNINGS BEFORE INTEREST AND
TAXES
183
182
1,667
1,723
Interest expense, net
14
27
76
109
EARNINGS BEFORE TAXES
169
155
1,591
1,614
Income tax expense
40
33
401
373
Equity in net earnings of affiliates
1
—
3
—
NET EARNINGS
130
122
1,193
1,241
Net loss attributable to non-redeemable
and redeemable noncontrolling interests
(1
)
(2
)
(3
)
—
NET EARNINGS ATTRIBUTABLE TO OWENS
CORNING
$
131
$
124
$
1,196
$
1,241
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO
OWENS CORNING COMMON STOCKHOLDERS
Basic
$
1.48
$
1.33
$
13.27
$
12.85
Diluted
$
1.46
$
1.32
$
13.14
$
12.70
WEIGHTED AVERAGE COMMON SHARES
Basic
88.5
93.1
90.1
96.6
Diluted
89.5
94.2
91.0
97.7
Table 2
Owens Corning and
Subsidiaries
EBIT Reconciliation
Schedules
(unaudited)
Adjusting (expense) income items to EBIT
are shown in the table below (in millions):
Three Months Ended December
31,
Twelve Months Ended December
31,
2023
2022
2023
2022
Restructuring costs
$
(63
)
$
(19
)
$
(169
)
$
(48
)
Gains on sale of certain precious
metals
—
—
2
18
Intangible assets impairment charge
—
(96
)
—
(96
)
Pension settlement losses
(145
)
—
(145
)
—
Acquisition and divestiture-related
costs
—
(2
)
—
(7
)
Gain on sale of Santa Clara, California
site
—
—
189
—
Gain on sale of Shanghai, China
facility
—
—
—
27
Gain on remeasurement of Fiberteq equity
investment
—
—
—
130
Paroc marine recall
(1
)
—
(15
)
—
Loss on sale of Chambery, France DUCS
business
—
(1
)
—
(30
)
Loss on sale of Russian operations
—
(33
)
—
(33
)
Total adjusting items
$
(209
)
$
(151
)
$
(138
)
$
(39
)
The reconciliation from net earnings
attributable to Owens Corning to EBIT and Adjusted EBIT, and the
reconciliation from EBIT to EBITDA and adjusted EBITDA are shown in
the table below (in millions):
Three Months Ended December
31,
Twelve Months Ended December
31,
2023
2022
2023
2022
NET EARNINGS ATTRIBUTABLE TO OWENS
CORNING
$
131
$
124
$
1,196
$
1,241
Net loss attributable to non-redeemable
and redeemable noncontrolling interests
(1
)
(2
)
(3
)
—
NET EARNINGS
130
122
1,193
1,241
Equity in net earnings of affiliates
1
—
3
—
Income tax expense
40
33
401
373
EARNINGS BEFORE TAXES
169
155
1,591
1,614
Interest expense, net
14
27
76
109
EARNINGS BEFORE INTEREST AND TAXES
183
182
1,667
1,723
Less: Adjusting items from above
(209
)
(151
)
(138
)
(39
)
ADJUSTED EBIT
$
392
$
333
$
1,805
$
1,762
Net sales
$
2,304
$
2,285
$
9,677
$
9,761
ADJUSTED EBIT as a % of Net sales
17
%
15
%
19
%
18
%
EARNINGS BEFORE INTEREST AND TAXES
$
183
$
182
$
1,667
$
1,723
Depreciation and amortization
163
131
609
531
EARNINGS BEFORE EARNINGS BEFORE INTEREST,
TAXES, DEPRECIATION AND AMORTIZATION
346
313
2,276
2,254
Less: Adjusting items from above
(209
)
(151
)
(138
)
(39
)
Accelerated depreciation and amortization
included in restructuring
(37
)
(4
)
(101
)
(26
)
ADJUSTED EBITDA
$
518
$
460
$
2,313
$
2,267
Net sales
$
2,304
$
2,285
$
9,677
$
9,761
ADJUSTED EBITDA as a % of Net sales
22
%
20
%
24
%
23
%
Table 3
Owens Corning and
Subsidiaries
Consolidated Statements of
Cash Flows
(unaudited)
(in millions)
Twelve Months Ended
December 31,
2023
2022
NET CASH FLOW PROVIDED BY OPERATING
ACTIVITIES
Net earnings
$
1,193
$
1,241
Adjustments to reconcile net earnings to
cash provided by operating activities:
Depreciation and amortization
609
531
Deferred income taxes
26
37
Pension annuity settlement charge
145
—
Stock-based compensation expense
51
51
Intangible assets impairment charge
—
96
Gains on sale of certain precious
metals
(2
)
(18
)
Gain on equity method investment
—
(130
)
Gain on sale of site
(189
)
—
Net loss on sale of assets or
affiliates
—
36
Other adjustments to reconcile net
earnings to cash provided by operating activities
(44
)
4
Change in operating assets and
liabilities:
Changes in receivables, net
(26
)
(14
)
Changes in inventories
148
(287
)
Changes in accounts payable and accrued
liabilities
(158
)
363
Changes in other operating assets and
liabilities
3
(81
)
Pension fund contributions
(18
)
(8
)
Payments for other employee benefits
liabilities
(11
)
(11
)
Other
(8
)
(50
)
Net cash flow provided by operating
activities
1,719
1,760
NET CASH FLOW USED FOR INVESTING
ACTIVITIES
Cash paid for property, plant and
equipment
(526
)
(446
)
Derivative settlements
—
44
Proceeds from the sale of assets or
affiliates
194
212
Investment in subsidiaries and affiliates,
net of cash acquired
(6
)
(417
)
Other
(18
)
(16
)
Net cash flow used for investing
activities
(356
)
(623
)
NET CASH FLOW USED FOR FINANCING
ACTIVITIES
Purchase of noncontrolling interest
—
(9
)
Dividends paid
(188
)
(136
)
Purchases of treasury stock
(657
)
(795
)
Finance lease payments
(33
)
(30
)
Other
1
(4
)
Net cash flow used for financing
activities
(877
)
(974
)
Effect of exchange rate changes on
cash
30
(22
)
Net increase in cash, cash equivalents,
and restricted cash
516
141
Cash, cash equivalents and restricted cash
at beginning of period
1,107
966
CASH, CASH EQUIVALENTS AND RESTRICTED
CASH AT END OF PERIOD
$
1,623
$
1,107
DISCLOSURE OF CASH FLOW
INFORMATION
Cash paid during the year for income
taxes
$
428
$
319
Cash paid during the year for interest
$
135
$
123
Table 4
Owens Corning and
Subsidiaries
Consolidated Balance
Sheets
(unaudited)
(in millions, except per share
data)
December 31,
December 31,
ASSETS
2023
2022
CURRENT ASSETS
Cash and cash equivalents
$
1,615
$
1,099
Receivables, less allowances of $11 at
December 31, 2023 and 2022
987
961
Inventories
1,198
1,334
Assets held for sale
—
45
Other current assets
117
117
Total current assets
3,917
3,556
Property, plant and equipment, net
3,841
3,729
Operating lease right-of-use assets
222
204
Goodwill
1,392
1,383
Intangible assets, net
1,528
1,602
Deferred income taxes
24
16
Other non-current assets
313
262
TOTAL ASSETS
$
11,237
$
10,752
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable
$
1,216
$
1,345
Current operating lease liabilities
62
52
Long-term debt – current portion
431
28
Other current liabilities
615
679
Total current liabilities
2,324
2,104
Long-term debt, net of current portion
2,615
2,992
Pension plan liability
69
78
Other employee benefits liability
112
118
Non-current operating lease
liabilities
165
152
Deferred income taxes
427
388
Other liabilities
315
299
Total liabilities
6,027
6,131
Redeemable noncontrolling interest
25
25
OWENS CORNING STOCKHOLDERS’ EQUITY
Preferred stock, par value $0.01 per share
(a)
—
—
Common stock, par value $0.01 per share
(b)
1
1
Additional paid in capital
4,166
4,139
Accumulated earnings
4,794
3,794
Accumulated other comprehensive
deficit
(503
)
(681
)
Cost of common stock in treasury (c)
(3,292
)
(2,678
)
Total Owens Corning stockholders’
equity
5,166
4,575
Noncontrolling interests
19
21
Total equity
5,185
4,596
TOTAL LIABILITIES AND EQUITY
$
11,237
$
10,752
(a)
10 shares authorized; none issued or
outstanding at December 31, 2023 and December 31, 2022
(b)
400 shares authorized; 135.5 issued and
87.2 outstanding at December 31, 2023; 135.5 issued and 91.9
outstanding at December 31, 2022
(c)
48.3 shares at December 31, 2023 and 43.6
shares at December 31, 2022
Table 5
Owens Corning and
Subsidiaries
Segment Information
(unaudited)
Roofing
The table below provides a summary of net
sales, EBIT and depreciation and amortization expense for the
Roofing segment (in millions):
Three Months Ended December
31,
Twelve Months Ended December
31,
2023
2022
2023
2022
Net sales
$
928
$
799
$
4,030
$
3,658
% change from prior year
16
%
12
%
10
%
14
%
EBIT
$
284
$
168
$
1,174
$
831
EBIT as a % of net sales
31
%
21
%
29
%
23
%
Depreciation and amortization
expense
$
16
$
16
$
64
$
62
EBITDA
$
300
$
184
$
1,238
$
893
EBITDA as a % of net sales
32
%
23
%
31
%
24
%
Insulation
The table below provides a summary of net
sales, EBIT and depreciation and amortization expense for the
Insulation segment (in millions):
Three Months Ended December
31,
Twelve Months Ended December
31,
2023
2022
2023
2022
Net sales
$
931
$
956
$
3,668
$
3,714
% change from prior year
-3
%
11
%
-1
%
17
%
EBIT
$
150
$
153
$
619
$
612
EBIT as a % of net sales
16
%
16
%
17
%
16
%
Depreciation and amortization
expense
$
51
$
50
$
210
$
206
EBITDA
$
201
$
203
$
829
$
818
EBITDA as a % of net sales
22
%
21
%
23
%
22
%
Composites
The table below provides a summary of net
sales, EBIT and depreciation and amortization expense for the
Composites segment (in millions):
Three Months Ended December
31,
Twelve Months Ended December
31,
2023
2022
2023
2022
Net sales
$
514
$
589
$
2,286
$
2,660
% change from prior year
-13
%
-3
%
-14
%
14
%
EBIT
$
26
$
64
$
242
$
498
EBIT as a % of net sales
5
%
11
%
11
%
19
%
Depreciation and amortization
expense
$
42
$
44
$
172
$
175
EBITDA
$
68
$
108
$
414
$
673
EBITDA as a % of net sales
13
%
18
%
18
%
25
%
Table 6
Owens Corning and
Subsidiaries
Corporate, Other and
Eliminations
(unaudited)
Corporate, Other and
Eliminations
The table below provides a summary of EBIT
and depreciation and amortization expense for the Corporate, Other
and Eliminations category (in millions):
Three Months Ended December
31,
Twelve Months Ended December
31,
2023
2022
2023
2022
Restructuring costs
$
(63
)
$
(19
)
$
(169
)
$
(48
)
Gains on sale of certain precious
metals
—
—
2
18
Intangible assets impairment charge
—
(96
)
—
(96
)
Pension settlement losses
(145
)
—
(145
)
—
Acquisition and divestiture-related
costs
—
(2
)
—
(7
)
Gain on sale of Santa Clara, California
site
—
—
189
—
Gain on sale of Shanghai, China
facility
—
—
—
27
Gain on remeasurement of Fiberteq equity
investment
—
—
—
130
Paroc marine recall
(1
)
—
(15
)
—
Loss on sale of Chambery, France DUCS
business
—
(1
)
—
(30
)
Loss on sale of Russian operations
—
(33
)
—
(33
)
General corporate expense and other
(68
)
(52
)
(230
)
(179
)
EBIT
$
(277
)
$
(203
)
$
(368
)
$
(218
)
Depreciation and amortization
$
54
$
21
$
163
$
88
Table 7
Owens Corning and
Subsidiaries
EPS Reconciliation
Schedules
(unaudited)
(in millions, except per share
data)
A reconciliation from net earnings
attributable to Owens Corning to adjusted earnings and a
reconciliation from diluted earnings per share to adjusted diluted
earnings per share are shown in the tables below:
Three Months Ended
Twelve Months Ended
March 31,
June 30,
September 30,
December 31,
December 31,
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
RECONCILIATION TO ADJUSTED
EARNINGS
NET EARNINGS ATTRIBUTABLE TO OWENS
CORNING
$
383
$
304
$
345
$
343
$
337
$
470
$
131
$
124
$
1,196
$
1,241
Adjustment to remove adjusting items
(a)
(173
)
(25
)
47
36
55
(123
)
209
151
138
39
Adjustment to remove tax expense/(benefit)
on adjusting items (b)
46
6
(11
)
(2
)
(11
)
—
(46
)
(26
)
(22
)
(22
)
Adjustment to remove significant tax items
and reserve reversals (c)
—
—
—
—
—
—
—
—
—
—
Adjustment to tax expense/(benefit) to
reflect pro forma tax rate (d)
1
8
7
2
(1
)
4
(7
)
(14
)
—
—
ADJUSTED EARNINGS
$
257
$
293
$
388
$
379
$
380
$
351
$
287
$
235
$
1,312
$
1,258
RECONCILIATION TO ADJUSTED DILUTED
EARNINGS PER SHARE ATTRIBUTABLE TO OWENS CORNING COMMON
STOCKHOLDERS
DILUTED EARNINGS PER COMMON SHARE
ATTRIBUTABLE TO OWENS CORNING COMMON STOCKHOLDERS
$
4.17
$
3.03
$
3.78
$
3.49
$
3.71
$
4.84
$
1.46
$
1.32
$
13.14
$
12.70
Adjustment to remove adjusting items
(a)
(1.88
)
(0.25
)
0.51
0.37
0.61
(1.27
)
2.34
1.60
1.52
0.40
Adjustment to remove tax expense/(benefit)
on adjusting items (b)
0.50
0.06
(0.12
)
(0.02
)
(0.12
)
—
(0.51
)
(0.28
)
(0.24
)
(0.22
)
Adjustment to remove significant tax items
and reserve reversals (c)
—
—
—
—
—
—
—
—
—
—
Adjustment to tax expense/(benefit) to
reflect pro forma tax rate (d)
0.01
0.08
0.08
0.01
(0.02
)
0.04
(0.08
)
(0.15
)
—
—
ADJUSTED DILUTED EARNINGS PER SHARE
ATTRIBUTABLE TO OWENS CORNING COMMON STOCKHOLDERS
$
2.80
$
2.92
$
4.25
$
3.85
$
4.18
$
3.61
$
3.21
$
2.49
$
14.42
$
12.88
RECONCILIATION TO DILUTED SHARES
OUTSTANDING
Weighted average shares outstanding used
for basic earnings per share
91.3
99.5
90.5
97.6
90.0
96.3
88.5
93.1
90.1
96.6
Non-vested restricted shares and
performance shares
0.6
0.7
0.8
0.8
0.9
0.8
1.0
1.1
0.9
1.1
Options to purchase common stock
—
—
—
—
—
—
—
—
—
—
Diluted shares outstanding
91.9
100.2
91.3
98.4
90.9
97.1
89.5
94.2
91.0
97.7
(a)
Please refer to Table 2 "EBIT
Reconciliation Schedules" for additional information on adjusting
items.
(b)
The tax impact of adjusting items is based
on our expected tax accounting treatment and rate for the
jurisdiction of each adjusting item.
(c)
There were no significant tax items in
2023 or 2022.
(d)
To compute adjusted earnings, we apply a
full year pro forma effective tax rate to each quarter presented.
For 2023, we have used an effective tax rate of 24%, which was our
2023 effective tax rate excluding the adjusting items referenced in
(a), (b) and (c). For comparability, in 2022, we have used an
effective tax rate of 24%, which was our 2022 effective tax rate
excluding the adjusting items referenced in (a), (b) and (c).
Table 8
Owens Corning and
Subsidiaries
Free Cash Flow Reconciliation
Schedule
(unaudited)
The reconciliation from net cash flow
provided by operating activities to free cash flow and the
calculation of free cash flow conversion of adjusted earnings
("free cash flow conversion") are shown in the table below (in
millions):
Three Months Ended December
31,
Twelve Months Ended December
31,
2023
2022
2023
2022
NET CASH FLOW PROVIDED BY OPERATING
ACTIVITIES
$
698
$
675
$
1,719
$
1,760
Less: Cash paid for property, plant and
equipment
(136
)
(140
)
(526
)
(446
)
FREE CASH FLOW
$
562
$
535
$
1,193
$
1,314
ADJUSTED EARNINGS (a)
$
287
$
235
$
1,312
$
1,258
FREE CASH FLOW CONVERSION (b)
n/a
n/a
91
%
104
%
(a)
Please refer to Table 7 "EPS
Reconciliation Schedules" for the reconciliation from net earnings
attributable to Owens Corning to adjusted earnings.
(b)
We compute free cash flow conversion on an
annual basis only due to the seasonality of our businesses.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240213351676/en/
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