Owens Corning lowered 2014 EBIT guidance ~17% due to continued volume weakness in its roofing business, with 1H14 volume down as much as 20%
Co lowered its 2014 full-year earnings outlook [FY14 EBIT to greater than FY13 ($416 mln) from $500 mln] due to continued volume weakness in its roofing business.
- In its first-quarter 2014 earnings release, the co stated that it expected to deliver $500 million in adjusted EBIT for full-year 2014 and noted that first-quarter volume weakness in its roofing business added risk to the company's financial outlook.
- The weakness in roofing volumes experienced in the first quarter continued through April and May, and the co now estimates that roofing volumes for 1H14 may be as much as 20 percent lower than first-half 2013 volumes. The co expects to recover a portion of this volume shortfall in the second half of the year. However, continued weakness in the second quarter has introduced further uncertainty in the full-year financial outlook for the co's roofing business.
- The co continues to see improvement in the year-over-year performance of both its insulation and composites businesses. Earnings growth in these two businesses is expected to more than offset the weaker financial performance in the roofing business year over year.
- The company now expects to deliver full-year 2014 adjusted EBIT that will be greater than the prior year result of $416 million.