Owens Corning Inc · NYSE:OC
Owens Corning — Q4 2014 Earnings Presentation
14 slides from Owens Corning's earnings presentation, Feb 11, 2015
Slide 1: Fourth-Quarter and Full-Year 2014 Results
Fourth-Quarter and Full-Year 2014 Results 2014 Adjusted EBIT in Line with Prior Year; Board Declares 6% Dividend Increase Mike Thaman Chairman & Chief Executive Officer Michael McMurray Chief Financial Officer February 11, 2015 1
Slide 2: Forward-Looking Statements and Non-GAAP Measures
Forward-Looking Statements and Non-GAAP Measures This presentation consists of this slide deck and the associated remarks and comments, all of which are integrally related and are intended to be presented and understood together. This presentation contains forward-looking statements within the meani
Slide 3: Today's Presentation
Fourth-Quarter and Full-Year Business Results Today’s Presentation Fourth-Quarter Review Mike Thaman Financial Results Michael McMurray Questions and Discussion All Closing Remarks Mike Thaman 3
Slide 4: Highlights and Outlook
Highlights and Outlook Maintained a very high level of safety performance in 2014 Board declared 6% dividend increase Delivered adjusted EBIT of $412 million Insulation delivered 14th consecutive quarter of EBIT growth; increased full-year EBIT by $68 million Composites delivered 6th conse
Slide 5: Key Financial Data
Key Financial Data ($ in millions, except per share data) 2014 2013 Q4 2014 Q4 2013 Net sales $5,276 $5,295 $1,261 $1,278 Net earnings attributable to Owens Corning $226 $204 $33 $82 Diluted earnings per share attributable to Owens $1.91 $1.71 $0.28 $0.69 Corning common stockholders Earnings before
Slide 6: Reconciliation from Full-Year 2014 Adjusted EBIT to Full-Year 2014 EBIT
Reconciliation from Full-Year 2014 Adjusted EBIT to Full-Year 2014 EBIT 500 $45 $(36) 450 $412 $(23) $(6) $392 400 350 ($ millions) 300 250 200 150 100 50 0 2014 Adj EBIT Gain on Sale of Fixed Cost Reduction Actions European Asset Completion of NJ 2014 EBIT Asset and Related Items Restructure Roofin
Slide 7: Adjusted EBIT by Business
Adjusted EBIT by Business Full-Year 2013 Compared with Full-Year 2014 550 $51 $(154) 500 $68 450 $416 $31 $412 Adjusted EBIT ($ millions) 400 350 300 250 200 150 100 50 0 2013 Adj EBIT Insulation Composites Roofing Corporate & Other 2014 Adj EBIT 7
Slide 8: Insulation Business
Insulation Business Q4 & Full-Year 2014 Highlights $ (in millions) Q4 2014 Q4 2013 2014 2013 Delivered full-year EBIT of $108 million, a $68 million increase versus last year Net sales* $490 $466 $1,746 $1,642 Achieved operating leverage of over 50% in 2014 EBIT $46 $39 $108 $40 Expect 2015 re
Slide 9: Composites Business
Composites Business Q4 & Full-Year 2014 Highlights $ (in millions) Q4 2014 Q4 2013 2014 2013 Achieved $149 million of EBIT in 2014; grew earnings by 50% versus last year Net sales* $464 $461 $1,935 $1,845 Delivered $32 million of price benefit in 2014, with EBIT $53 $36 $149 $98 six consecutive
Slide 10: Roofing Business
Roofing Business Q4 & Full-Year 2014 Highlights $ (in millions) Q4 2014 Q4 2013 2014 2013 Full-year margins declined 7% on lower volumes and prices Net sales* $340 $381 $1,748 $1,967 Achieved commercial objectives for the second EBIT $32 $55 $232 $386 half EBIT as % of Market dynamics in the f
Slide 11: Significant Financial Matters
Significant Financial Matters Issued $400 million bond in the quarter, using majority of proceeds to redeem higher-interest rate notes – Reduced average interest rate of senior notes from 6.2% to 5.6% – Resulted in a $46 million loss on extinguishment The company’s Board of Directors declared a
Slide 12: 2015 Outlook
2015 Outlook Expect continued growth in U.S. housing starts, generally forecasted in a range of 1.1 million to 1.2 million Anticipate continued moderate global industrial production growth Clarity on the full-year EBIT outlook for the company expected later in year once the Roofing market and
Slide 13: Financial Guidance
Financial Guidance Corporate expenses of $120 million to $130 million Capital expenditures of approximately $355 million, including an estimated $55 million for the completion of a non-woven facility Depreciation and amortization of about $310 million Interest expenses expected to be about $
Slide 14: Questions and Discussion
Fourth-Quarter & Full-Year 2014 Results Questions and Discussion Mike Thaman Chairman & Chief Executive Officer Michael McMurray Chief Financial Officer February 11, 2015 14