Owens Corning shows $115 million in first-quarter operating income

By Caroline Salls

Pittsburgh, May 2 - Owens Corning reported $115 million in operating income for the first quarter ended March 31 on sales of $1.601 billion, according to a company news release.

For the same period of 2005, the company posted a $4.281 billion operating loss on sales of $1.402 billion.

"Our record operating results in the first quarter reflected the strong demand of our buildings materials systems segment," president and chief executive officer Dave Brown said in the release.

"We will continue to introduce new product offerings, maintain cost control and streamline our business processes to deliver profitable growth and enhance customer satisfaction."

In March of 2005, a federal district court estimated Owens Corning's asbestos liability at $7 billion, which resulted in a non-cash charge of $4.342 billion in the first quarter of 2005.

Excluding this and other Chapter 11-related reorganization items, operating performance improved 26% in the first quarter compared with the same period of 2005, the release said.

Although market demand for building materials products remained strong through the first quarter, Owens Corning said recent increases in U.S. housing inventory and interest rates are expected to exert pressure on future demand, which could impact prices for certain products.

Offsetting the potential softening of demand, the Energy Policy Act of 2005 may stimulate demand for Owens Corning products in the United States because of the potential tax credits offered to home builders for the construction of more energy-efficient homes and to homeowners for some energy-efficient home improvements, according to the release.

Owens Corning, a Toledo, Ohio, building materials company, filed for bankruptcy on Oct. 5, 2000 in the U.S. Bankruptcy Court for the District of Delaware. Its Chapter 11 case number is 00-3837.

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