Owens Corning Sales Flat, Margins Improve
TOLEDO, Ohio, Oct. 11 - Owens Corning (NYSE:OWC) today reported financial results for the third quarter ended Sept. 30, 2001.
For the quarter, the company had net sales of $1.291 billion, compared to $1.281 billion in the same period of 2000. Income from Operations before other charges and Chapter 11 reorganization items was $116 million in the quarter, compared to $106 million in the third quarter of the prior year before other charges.
Owens Corning had net income of $27 million for the third quarter of 2001, compared to a net income of $14 million in the prior year. Results for the quarter in the prior year include $26 million of pre-tax charges for restructuring and other activities. Results for the third quarter of 2001 include $35 million of pre-tax charges for restructuring and other activities, $23 million of pre-tax Chapter 11-related reorganization items and $5 million in income from asbestos-related insurance recoveries.
For the quarter, sales were flat compared to the third quarter in 2000. The company had some margin improvements attributable to productivity and material deflation.
The company ended the third quarter of 2001 with approximately $550 million in cash. In addition, the company has available a $500 million Debtor in Possession credit facility.
Owens Corning is a world leader in building materials systems and composites systems. The company has annual sales of about $5 billion and employs approximately 20,000 people worldwide. Additional information is available on Owens Corning's Web site at www.owenscorning.com or by calling the company's toll-free General Information line: 1-877-799-6904.
On October 5, 2000, Owens Corning and 17 United States subsidiaries filed voluntary petitions for relief under Chapter 11 of the U. S. Bankruptcy Code in the U. S. Bankruptcy Court for the District of Delaware. The Debtors are currently operating their businesses as debtors-in-possession in accordance with provisions of the Bankruptcy Code. The Chapter 11 cases of the Debtors are being jointly administered under Case No. 00-3837 (JKF). The Chapter 11 cases do not include other U. S. subsidiaries of Owens Corning or any of its foreign subsidiaries. The Debtors filed for relief under Chapter 11 to address the growing demands on Owens Corning's cash flow resulting from its multi-billion dollar asbestos liability. Owens Corning is unable to predict at this time what the treatment of creditors and equity holders of the respective Debtors will be under any proposed plan or plans of reorganization. Pre-petition creditors may receive under a plan or plans less than 100% of the face value of their claims, and the interests of Owens Corning's equity security holders may be substantially diluted or cancelled in whole or in part. It is not possible at this time to predict the outcome of the Chapter 11 cases, the terms and provisions of any plan or plans of reorganization, or the effect of the Chapter 11 reorganization process on the claims of the creditors of the Debtors, or the interests of Owens Corning's equity security holders.
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in these statements. Further information on factors that could affect the company's financial and other results is included in the company's Forms 10-Q and 10-K, filed with the Securities and Exchange Commission.