Owens Corning completes siding business sale
Owens Corning, the Toledo-based supplier and manufacturer of insulation and building materials, has completed the sale of its siding business to French building materials giant Saint-Gobain.
The $371 million sale included Owens Corning’s Norandex/Reynolds siding distribution business with 153 distribution sites in the United States and manufacturing facilities in London, Ontario; Joplin, Mo.; and Claremont, N.C.
“This sale is part of our ongoing strategy to focus on core businesses that bring value to our customers,” said Dave Brown, president and CEO. “This transaction enhances shareholder value by strengthening Owens Corning’s ability to generate consistent profitable growth across its portfolio of businesses.”
The transaction completes Owens Corning’s previously announced strategic review of its “Siding Solutions” business, the company said in a statement.
Sears sees income fall in the second quarter
Sears Holdings reported sales of $12.2 billion, down 4.7 percent from $12.8 billion last year. The company recorded net income of $176 million, down 40.1 percent from $294 million last year.
The lower results reflect lower operating results at Sears stores in the United States and Kmart stores, the company said in a statement. Sears Canada partially offset the poor performance, the company said.
“We are disappointed with our second quarter results,” said Aylwin Lewis, CEO of Sears Holdings. “In response, we are enhancing our marketing message to more clearly articulate the advantages of our products and service offerings.”
Sears’ domestic comparable-store sales fell 4.3 percent in the quarter, while comparable-store sales fell 3.8 percent at Kmart stores, leading to a decline in total domestic comparable-store sales of 4.1 percent.
Additionally, the company announced it has opened a new 782,000-square-foot direct delivery facility in Pendergrass, Ga. to serve the Alabama, Florida, Georgia, North Carolina, Tennessee and Kentucky markets.
Based in Hoffman Estates, Ill., Sears Holdings operates approximately 3,800 full-line and specialty retail stores in the United States and Canada.
M/I Homes amends credit agreement
Columbus, Ohio-based home builder M/I Homes said it has renegotiated the terms of a credit agreement with JP Morgan Chase, allowing the home builder to borrow $500,000 under its credit line, down from a credit line of $650,000.
As part of the agreement, M/I Homes can lower its interest coverage ratio, according to the company’s filing with the Securities and Exchange Commission, which could result in lower interest payments.
M/I Homes most recently reported a second quarter loss of $42.6 million, compared with profit of $18.3 million in the same period last year. The company was hit with $72.1 million in charges, mostly related to abandoning land option contracts.
Additionally, the company saw the number of homes delivered in the second quarter fall 24 percent, from 987 homes last year to 755. New contracts were down 10 percent to 688 from 764 last year.
M/I Homes builds single-family homes in Ohio, Illinois, Indiana, Florida, North Carolina, Delaware, Virginia, Maryland and Washington D.C.