Owens Corning Sales and Earnings Fall
TOLEDO, Ohio, April 12 - Owens Corning (NYSE:OWC) today reported financial results for the first quarter ended March 31, 2001.
For the first quarter, the company had net sales of $1.068 billion, compared to $1.257 billion in the same period in 2000. Income from Operations before other charges and Chapter 11 reorganization items was $46 million in the quarter, compared to $105 million in the first quarter of the prior year. Results for the first quarter of 2001 reflect lower volume and a weaker price environment for the company's building materials business in North America, and the impact of higher energy prices on manufacturing costs. For the first quarter of 2001, Owens Corning reported a net loss of $10 million, compared to net income of $48 million in the prior year. Results for the quarter include $42 million in pre-tax charges for restructuring and other activities, and $21 million in pre-tax Chapter 11-related reorganization items.
The company ended the first quarter of 2001 with approximately $450 million in cash. In addition, the company has available a $500 million Debtor in Possession credit facility.
On April 2, 2001, Owens Corning filed with the Securities and Exchange Commission a Form 10-K annual report for the fiscal year ended December 31, 2000. In light of the filing under Chapter 11 of the U.S. Bankruptcy Code, the Form 10-K will serve as the company's annual report for the year 2000.
Owens Corning is a world leader in building materials systems and composites systems. The company has sales of $5 billion and employs approximately 20,000 people worldwide. Additional information is available on Owens Corning's Web site at http://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.