Owens Corning Q3 earnings decline
Owens Corning has reported consolidated net sales of $1.28 billion in the third quarter of 2012, down 11.7% from $1.45 billion during the same period last year.
The company reported net earnings of $44 million, compared with net earnings of $124 million in the third quarter of 2011.
"We are disappointed in our third-quarter financial results," said chairman and CEO Mike Thaman. "Despite these results, we are proud that our Insulation business achieved profitability in the quarter for the first time in four years, in an improving U.S. construction market. Roofing and Composites are experiencing challenging market conditions in the second half. We continue to focus on actions that will position these businesses for near-term improvement."
The company expects full-year adjusted earnings before interest and taxes (EBIT) in the range of $280 million to $310 million. The company’s revised adjusted EBIT expectation for the year reflects near-term weakness in roofing demand, higher curtailment and start-up costs in composites, as well as softer growth in global industrial production.
In the building materials segment, roofing weakness in the latter part of the third quarter is not expected to improve for the rest of the year. “However, the company expects the factors that have driven margins in recent years will continue to deliver profitability in this business,” according to a company press release.
Owens Corning expects that insulation will improve financial performance for the remainder of the year and narrow losses in 2012 on improved U.S. housing starts and operating leverage in the business.
Sales rise at Weyerhaeuser
Weyerhaeuser Co. reported net sales of $1.79 billion for its third fiscal quarter, compared with net sales of $1.57 billion for the third quarter of 2011.
Net earnings for the quarter, which ended Sept. 30, were $117 million, compared with $157 million in the third quarter of 2011. (That quarter included $24 million in net earnings from discontinued operations.) Before special items, Weyerhaeuser reported net earnings for the third quarter of $117 million, compared with $66 million a year ago.
Sales in the wood products segment increased by $40 million to $816 million during the third quarter. The segment’s earnings before special items improved $29 million compared with the second quarter due to strong markets and effective execution of performance improvement initiatives, the company said. Sales realizations were higher across nearly all product lines, most significantly in oriented strand board, which increased 25%. Sales volumes for engineered wood products increased, and volumes for lumber and oriented strand board declined slightly.
Weyerhaeuser anticipates lower earnings from the wood products segment in the fourth quarter due to seasonal declines in pricing and demand for most products, according to its financial statement.
Obituary: Forest products leader Chris Snavely
Christian Miller Snavely, Jr., the chairman emeritus of Snavely Forest Products , World War II veteran and past chairman of the North American Wholesale Lumber Association died Oct. 24. He was 88.
Snavely is remembered by friends and colleagues as a generous and well-respected business leader. He was elected chairman of the industry trade association, NAWLA, which honored him with the prestigious Mulrooney Award for outstanding contributions to the forest products industry.
Chris was born in Lititz, Pa., and enlisted in the US Army in 1942 and entered the European Theater where he fought in the Battle of the Bulge. Chris was captured there and remained a POW until his liberation in 1945. He was honorably discharged in 1945, and recalled into service during the Korean War, where he served, 1950 to 1951.
Among Chris Snavely’s many philanthropic endeavors were his active support of The Pittsburgh Symphony and The Pittsburgh Cultural Trust. He was the founder of the Haiti Tree Reintroduction Program (HTRIP), whose objective is the reforestation of Haiti.
He is survived by his wife of 65 years, Theresa Vant Snavely. He is also survived by his children Susan Fitzsimmons (David) and Steve Snavely (Peggy); five grandchildren, Corinne Trively (Ed), Matthew Anderson, Patrick Snavely, Laura Snavely, and Eric Snavely. Chris was the proud great-grandfather of Samuel Trively, Sophia Trively and Quinn Trively.
Chris was preceded in death by his son Christian Miller Snavely III.