Owens Corning Q2 Down 50% Amid Composites Sales Decline
Owens Corning‘s second quater profits dropped by 50% as the company sees revenue fall following sales declines in its building and composites sectors.
Owens Corning still expects full year pre-tax earnings to increase from $360 million to $420 million, the company also expects its insulation business will reduces losses in 2012 and expects the composites segment to improve in the second half of the year.
Cheif Executive Mike Thaman said;
Our second-quarter financial performance represents progress over the first quarter, but the rate of improvement is below our expectations, and we no longer see 2012 as a year of adjusted EBIT growth
Sales in the composites business have fallen by 5.9% however the company back in April said that it expected a strong performance in its building-materials business that would more than offset the “market challenges” in its composites business, which is currently undergoing a revamp to balance supply and improve the position of european assets.
Shares closed Tuesday at $26.86 and were inactive premarket. The stock is off 24% in the last 12 months.