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OWENS CORNING  2BBF5410-850B-46FE-B2F6-FB2CD7E26445_Q42008SlidePresentation
OWENS CORNING  2BBF5410-850B-46FE-B2F6-FB2CD7E26445_Q42008SlidePresentation
OWENS CORNING  2BBF5410-850B-46FE-B2F6-FB2CD7E26445_Q42008SlidePresentation
OWENS CORNING  2BBF5410-850B-46FE-B2F6-FB2CD7E26445_Q42008SlidePresentation
OWENS CORNING  2BBF5410-850B-46FE-B2F6-FB2CD7E26445_Q42008SlidePresentation
OWENS CORNING  2BBF5410-850B-46FE-B2F6-FB2CD7E26445_Q42008SlidePresentation
OWENS CORNING  2BBF5410-850B-46FE-B2F6-FB2CD7E26445_Q42008SlidePresentation
OWENS CORNING  2BBF5410-850B-46FE-B2F6-FB2CD7E26445_Q42008SlidePresentation
OWENS CORNING  2BBF5410-850B-46FE-B2F6-FB2CD7E26445_Q42008SlidePresentation
OWENS CORNING  2BBF5410-850B-46FE-B2F6-FB2CD7E26445_Q42008SlidePresentation
OWENS CORNING  2BBF5410-850B-46FE-B2F6-FB2CD7E26445_Q42008SlidePresentation
OWENS CORNING  2BBF5410-850B-46FE-B2F6-FB2CD7E26445_Q42008SlidePresentation
OWENS CORNING  2BBF5410-850B-46FE-B2F6-FB2CD7E26445_Q42008SlidePresentation
OWENS CORNING  2BBF5410-850B-46FE-B2F6-FB2CD7E26445_Q42008SlidePresentation
OWENS CORNING  2BBF5410-850B-46FE-B2F6-FB2CD7E26445_Q42008SlidePresentation
OWENS CORNING  2BBF5410-850B-46FE-B2F6-FB2CD7E26445_Q42008SlidePresentation
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OWENS CORNING 2BBF5410-850B-46FE-B2F6-FB2CD7E26445_Q42008SlidePresentation

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  • 1. Fourth Quarter and Full-Year 2008 Results A Successful Year in a Difficult Global Market Mike Thaman, Chairman & CEO Duncan Palmer, CFO February 18, 2009
  • 2. Forward-Looking Statements and Non-GAAP Measures This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward- looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those projected in these statements. Such factors include, without limitation: economic and political conditions, including new legislation or other governmental actions; levels of residential and commercial construction activity; competitive factors; pricing pressures; weather conditions; our level of indebtedness; industry and economic conditions that adversely affect the market and operating conditions of our customers, suppliers or lenders; availability and cost of energy and materials; availability and cost of credit; interest rate movements; issues involving implementation of acquisitions, divestitures and joint ventures; our ability to use our net operating loss carryforwards; achievement of expected synergies, cost reductions and/or productivity improvements; issues involving implementation of new business systems; foreign exchange fluctuations; the success of research and development activities; difficulties in managing production capacity; labor disputes; and factors detailed from time to time in the Company’s Securities and Exchange Commission filings. The information in this presentation speaks as of the date February 18, 2009 and is subject to change. The Company does not undertake any duty to update or revise forward-looking statements. Any distribution of this presentation after that date is not intended and will not be construed as updating or confirming such information. Additional Company information is available on the Owens Corning Web site: www.owenscorning.com. Certain data included within this presentation contains quot;non-GAAP financial measuresquot; as defined by the Securities and Exchange Commission. A reconciliation of these non-GAAP financial measures to their most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles can be found in our Current Report on Form 8-K filed with the Securities and Exchange Commission on February 18, 2009. 2
  • 3. Fourth Quarter and Full-Year 2008 Business Results Today’s Presentation • The Year in Review Mike Thaman • Financial Results Duncan Palmer • Questions & Discussion All • Closing Remarks Mike Thaman 3
  • 4. Achieved Goals in 2008 • Established a safer workplace • Delivered cost reductions • Approached double-digit Composites margins and exceeded the synergy target • Reduced the size of the leased precious metals portfolio • Delivered record year in Roofing and Asphalt • Sustained a profitable Insulation segment • Maintained a strong capital structure, with no significant debt maturities due until Q4 2011 • Delivered adjusted EBIT consistent with guidance 4
  • 5. Key Financial Data ($ in millions, except per share data) 2008 2007 Q4-2008 Q4-2007 Net sales 5,847 4,978 1,291 1,304 Net earnings (loss)* (839) 96 (45) (46) Earnings (loss) from continuing operations* (839) 27 (45) (40) Earnings from discontinued operations - 69 - (6) EPS (diluted) from continuing operations* (6.56) 0.21 (0.36) (0.31) EPS (diluted) from discontinued operations - 0.53 - (0.05) EBIT from continuing operations 196 145 15 (46) Adjusted EBIT from continuing operations 290 341 48 88 Adjusted EPS (diluted) from continuing operations 0.95 1.23 0.13 0.31 Adjusted EBIT as a % of sales 5.0% 6.9% 3.7% 6.7% Marketing and administrative expenses 617 498 159 133 D&A from continuing operations 331 333 91 99 Debt, net of cash 1,982 1,915 1,982 1,915 *Includes Impact of Income Tax Valuation Allowance 5
  • 6. Reconciliation from Q4 2008 Adjusted EBIT to Q4 2008 EBIT $48 $(23) 50 40 EBIT ($MM) 30 $(6) $(2) 20 $(2) $(1) $1 $15 10 0 ts it sts IT IT ms e e se ed ns EB EB ns Co Cr ite As pe pe dj 08 i on r f ed x ex A the 20 so yE lat rat 08 se Q4 ale uit dO Re 20 eg ea S Eq l nt n Q4 1 t al ga on r1 nI ce me pte rin ss tio en i Lo tu a s g uis er Ch i ou uc cq str Em ec A r Re e tp ye Ne pl o Em 6
  • 7. Adjusted EBIT ($MM) Q 4 0 50 100 150 200 20 07 Ad j EB IT $88 Ro o f in g an d A sp h al t $79 Co m po si te s So lu t io n s $(27) In su O la th e tin g rB Sy ui ld st in em g s M at $(64) er ia ls an d Se rv ic es $(9) Co rp o ra Q4 2008 Compared with Q4 2007 te $(19) Q 4 20 08 Adjusted EBIT by Business Segment Ad j EB IT $48 7
  • 8. Adjusted EBIT ($MM) 0 100 200 300 400 500 600 700 20 07 Ad j EB IT Ro $341 o f in g an d A sp h al t Co m $158 po si te s So lu t io n s $85 In su O la th e tin g rB Sy ui ld st in em g s M at er $(178) ia ls an d Se rv 2008 Compared with 2007 ic es $(38) Co rp o ra te $(78) 20 08 Adjusted EBIT by Business Segment Ad j EB IT $290 8
  • 9. Composites Q4 Q4 Q4/2008 Highlights 2008 2007 ($ in millions) 2008 2007 • Q4 impacted by the dramatic global economic 2,363 1,695 448 543 Net sales* slowdown 208 123 19 46 EBIT • Actions taken to align production capacity with EBIT as % of 9% 7% 4% 8% demand sales EBIT as % of • Weakness expected to carry into 1H 2009 54% 34% 28% 52% all segments • Achieved synergies of $50 million in 2008 135 115 41 41 D&A *Net sales before inter-segment eliminations Five-Year Financial Performance* 2008 Revenue by End Market Sales EBIT as % of Sales U.S. & Canada $3,000 30% Commercial & Industrial 20% $2,500 25% $2,000 20% U.S. & Canada Residential $1,500 15% Construction $1,000 10% 9% International 71% $500 5% $0 0% 2004 2005 2006 2007 2008 Company estimates *2004 is not recast for the effect of discontinued operations 9
  • 10. Insulating Systems Q4 Q4 Q4/2008 Highlights 2008 2007 ($ in millions) 2008 2007 • Sales down as result of weak U.S. housing 1,573 1,776 375 454 Net sales* market 14 192 (9) 55 EBIT • Prices stabilized in 2H 2008 EBIT as % of 1% 11% (2)% 12% sales • EBIT decline due to lower volume and inflation EBIT as % of 4% 54% (13)% 63% all segments • Market weakness is expected to continue in 2009 119 125 30 31 D&A *Net sales before inter-segment eliminations 2008 Revenue by End Market Five-Year Financial Performance International Sales EBIT as % of Sales 13% 25% $2,500 U.S. & Canada New Residential 20% $2,000 Construction 38% U.S. & Canada 15% $1,500 Commercial & Industrial 10% $1,000 26% 5% $500 U.S. & Canada Residential Repair 0% $0 & Remodeling 2004 2005 2006 2007 2008 Company estimates 23% 10
  • 11. Roofing and Asphalt Q4 Q4 Q4/2008 Highlights 2008 2007 ($ in millions) 2008 2007 • Q4 sales up 69% 1,863 1,375 466 276 Net sales* • Significant gains in manufacturing and material 185 27 70 (9) EBIT efficiencies and improved product mix drove EBIT as % of 10% 2% 15% (3)% EBIT performance in 2008 sales EBIT as % of • Selling prices fully recovered raw material and 48% 8% 104% (10)% all segments delivery inflation 42 40 12 10 D&A • Storm-related demand to continue into 2009 *Net sales before inter-segment eliminations 2008 Revenue by End Market Five-Year Financial Performance Sales EBIT as % of Sales U.S. & Canada Commercial & Industrial $3,000 12% 11% U.S. & Canada $2,500 10% U.S. & Canada Residential Repair New Residential & Remodeling $2,000 8% Construction 75% 6% 14% $1,500 $1,000 4% $500 2% $0 0% Company estimates 2004 2005 2006 2007 2008 11
  • 12. Other Building Materials & Services Q4 Q4 Q4/2008 Highlights 2008 2007 ($ in millions) 2008 2007 • Masonry Products continued to face weak 235 301 46 67 Net sales* construction-related demand (24) 14 (13) (4) EBIT • Actions taken to further curtail capacity and EBIT as % of (10)% 5% (28)% (6)% sales reduce costs in Masonry Products EBIT as % of (6)% 4% (19)% (5)% • Basement finishing and SunSuites™ sales all segments down due to weak consumer credit markets 12 10 3 2 D&A and declining home valuations *Net sales before inter-segment eliminations 2008 Revenue by End Market Five-Year Financial Performance* Sales EBIT as % of Sales International 16% 10% $2,000 U.S. & Canada 5% $1,500 Commercial & U.S. & Canada Industrial New Residential 18% 0% $1,000 Construction 50% -5% $500 U.S. & Canada -10% $0 Residential Repair 2004 2005 2006 2007 2008 & Remodeling 16% Company estimates *2004 is not recast for the effect of discontinued operations 12
  • 13. Share Buy-Back Program • Announced a share buy-back program in the first quarter of 2007 • Authorized to repurchase up to 5%, approximately 6.5 million shares, of Owens Corning outstanding stock • During Q4 Owens Corning repurchased 1.8 million shares of the Company’s common stock at an average price of $19.43 per share • In 2008 Owens Corning repurchased 4.7 million shares of the Company’s common stock at an average price of $21.47 per share • As of December 31, 2008, the company has 1.9 million shares remaining available for repurchase under the current authorization 13
  • 14. 2008 Cash Taxes and Tax Expense • Overall cash taxes in 2008 were $33 million – Expected cash taxes in 2009 to total less than 2008 • Full year 2008 results include a $909 million non-cash charge to establish a tax valuation allowance – No impact on cash flow, liquidity, credit facilities or ability to utilize our $2.7 billion U.S. NOL • Long term sustainable effective tax rate of 25%, based on blend of U.S. and non-U.S. operations • To provide better comparability, the global book tax rate has been adjusted to 25% in calculating adjusted earnings 14
  • 15. Strong Balance Sheet • Owens Corning has a strong capital structure that provides ample liquidity and credit – No significant debt maturities coming due until Q4 2011 – $615 million available in the revolving credit facility – $236 million cash on hand • Capital expenditures will be less than $275 million, compared with $366 million in 2008 • Depreciation and Amortization expense will be approximately $350 million in 2009 15
  • 16. Questions & Discussion Mike Thaman, Chairman & CEO Duncan Palmer, CFO February 18, 2009

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