Owens Corning earnings rise 80 percent in third quarter
Building materials company Owens Corning nearly doubled its third-quarter earnings, rising 80.6 percent to $112 million from $62 million in the same period last year. Net sales fell 9 percent to $1.27 billion from $1.4 billion in the same period last year.
While earnings from continuing operations were $52 million, the company saw additional gains stemming from its emergence from bankruptcy this year and the subsequent sale of certain businesses.
The company completed the sale of its siding solutions business to France-based building materials company Saint-Gobain for $368 million, as well as the sale of its Fabwel business for $57 million.
At the same time, Owens Corning most recently completed the acquisition of the reinforcements and composite fabrics business of Saint-Gobain for $640 million.
“The weakness in new residential construction continued to have a significant impact on the overall performance of our company,” said Dave Brown, president and CEO. “We’ve acted decisively to make our company more global.”
Based in Toledo, Ohio, Owens Corning manufactures and markets glass fiber building materials and home improvement systems.
Pope & Talbot files for bankruptcy in Canada
Lumber producer Pope & Talbot has filed for bankruptcy protection in Canada, according to a company filing with the Securities and Exchange Commission.
The company cited a stronger Canadian dollar, coupled with “record low demand for lumber” as leading to the company’s need for protection from creditors.
In its second quarter, Pope & Talbot reported a loss of US$42.9 million compared with losses of US$21.8 million in the same period last year. Sales were US$236.6 million, up from sales of US$213.6 million last year. The company ended the second quarter with US$354.9 million in debt, and its shares were delisted from the New York Stock Exchange in August.
The company also said “high-priced pulp chips and sawdust” and “the high cost of debt service have combined for an untenable business environment.” If the company’s bankruptcy filing is approved, it will begin a restructuring process that could include “the sale of certain or all of the company’s assets.”
Based in Portland, Ore., Pope & Talbot produces market pulp and softwood lumber at mills in the United States and Canada.
M/I Homes sees losses of $21.7 million
Columbus, Ohio-based home builder M/I Homes saw a third-quarter net loss of $21.7 million, swinging from earnings of $15.2 million in the same period last year. Net revenue fell 20.4 percent to $243.7 million from $306.2 million last year.
The loss includes a $26.5 million charge for land and real estate-related impairment and abandonment, as well as a joint venture investment write-off of $6.1 million. Year-to-date the company has recorded $92.9 million in land-related charges.
Robert Schottenstein, president and CEO, said market conditions remain challenging in the company’s markets.
“We remain focused on initiatives that include reducing our land and expense levels, improving our balance sheet, as well as continued improvements in our customer service and quality processes,” Scottenstein said. “We expect to … further reduce our debt levels by year end.”
M/I Homes builds homes in Ohio, Illinois, Indiana, Florida, North Carolina, Delaware, Virginia and Maryland.