Research Desk Line-up: Vulcan Materials Post Earnings Coverage

LONDON, UK / ACCESSWIRE / August 8, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Owens Corning (NYSE: OC), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=OC, following the Company's posting of its second quarter fiscal 2017 results on July 26, 2017. The construction materials Company reported a 3% gain in sales on a y-o-y basis. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the General Building Materials industry. Pro-TD has currently selected Vulcan Materials Company (NYSE: VMC) for due-diligence and potential coverage as the Company announced on August 02, 2017, its financial results for Q2 2017 which ended on June 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on Vulcan Materials when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on OC; also brushing on VMC. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=OC

http://protraderdaily.com/optin/?symbol=VMC

Earnings Reviewed

Owens Corning reported consolidated net sales of $1.60 billion in Q2 2017 compared with net sales of $1.55 billion in Q2 2016, reflecting an increase of 3%. The Company's reported numbers exceeded analysts' estimates of $1.48 billion.

During Q2 2017, Owens Corning sustained a high level of safety performance, with a recordable incident rate of 0.48 compared with 0.54 in Q2 2016; representing an 11% improvement.

Owens Corning reported earnings before interest and taxes (EBIT) of $190 million for Q2 2017 compared with $240 million during Q2 2016. The Company's adjusted EBIT in the reported quarter was $230 million compared with $253 million in the prior year's same quarter. During Q2 2017, Owens Corning incurred $40 million of net expenses which were excluded from adjusted EBIT. Charges associated with pension risk mitigation, the acquisition of Pittsburgh Corning, and the decisions not to rebuild sub-scale furnaces in the Composites business were partially offset by income from a legal settlement.

For Q2 2017 net earnings attributable to Owens Corning were $96 million, or $0.85 per diluted share, compared with $138 million, or $1.19 per diluted share, during Q2 2016. The Company's reported quarter adjusted earnings were $136 million, or $1.20 per diluted share, compared with $151 million, or $1.30 per diluted share, during the year earlier corresponding period. Owens Corning's earnings surpassed Wall Street's estimates of $1.06 per share.

Segment Results

During Q2 2017, Owens Insulation business saw sales of $439 million, up 6% on a y-o-y basis, primarily on higher sales volumes in the US residential new construction market and disciplined commercial execution, including progress on pricing. Insulation business' EBIT declined $3 million on a y-o-y basis, primarily on raw material inflation and $7 million in costs associated with the startup of the Company's new mineral wool facility.

Owens Corning's Composites business delivered sales of $537 million, up 4% on a y-o-y basis on volume growth of 7%. The segment set new records for both earnings and operating margins in the quarter. Composites business EBIT for the reported quarter was $84 million, $10 million higher than the year ago same period on volume growth and lower rebuild and startup expenses. The business delivered 16% operating margins.

For Q2 2017, Owens Corning's Roofing business generated sales of $684 million, reflecting a 1% increase on a y-o-y basis, driven by higher prices and component sales. The segment's sales volumes had decreased by approximately 8% in the reported quarter. Roofing division's EBIT in Q2 2017 was $155 million, down $14 million on a y-o-y basis on lower shingle volume, partially offset by higher component volumes. Roofing delivered 23% EBIT margins in the quarter on strong commercial execution and continued growth in its components business.

Share Repurchase

During Q2 2017, Owens Corning repurchased 1.0 million shares of its common stock for $61 million at an average price of $62.95 per share. As of June 30, 7.8 million shares were available for repurchase under the Company's current authorization.

Senior Notes Offering

On June 26, 2017, Owens Corning issued a new 30-year bond of $600 million at 4.3% and launched a tender offer for all of the outstanding bonds maturing in 2019, and up to $140 million of bonds maturing in 2036. The new debt structure improves the Company's debt maturity profile and liquidity. In association with the tender offer, the Company expects to incur a loss on debt extinguishment of approximately $70 million in Q3 2017.

Outlook

For FY17, Owens Corning is forecasting its Insulation business to generate revenue growth of more than $250 million, approximately half of which will come from the Pittsburgh Corning acquisition. EBIT is expected to be about $185 million. For its Roofing business, the Company is estimating that continued growth in new construction and reroof demand will offset potential declines from storm activity, resulting in a relatively flat market for 2017. In Composites, Owens Corning now expects EBIT growth of about $30 million, with the improved outlook primarily driven by stronger volume expectations.

For full-year 2017, the Company expects adjusted EBIT of at least $825 million, with growth projected to accelerate in H2 2017.

Stock Performance

At the closing bell, on Monday, August 07, 2017, Owens Corning' stock slightly slipped 0.38%, ending the trading session at $68.05. A total volume of 701.29 thousand shares have exchanged hands. The Company's stock price surged 10.38% in the last three months, 22.90% in the past six months, and 27.29% in the previous twelve months. Moreover, the stock soared 31.98% since the start of the year. The stock is trading at a PE ratio of 19.61 and has a dividend yield of 1.18%. The stock currently has a market cap of $7.59 billion.

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