UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C., 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 23, 2014
Owens Corning
(Exact name of registrant as specified in its charter)
DE | 1-33100 | 43-2109021 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification No.) |
One Owens Corning Parkway Toledo, OH |
43659 | |
(Address of principal executive offices) | (Zip Code) |
419-248-8000
(Registrants telephone number, including area code)
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. | Results of Operations and Financial Condition |
On July 23, 2014, Owens Corning issued a press release announcing its financial results for the quarter ended June 30, 2014.
Exhibit 99.1 contains certain financial measures that are considered non-GAAP financial measures as defined in the federal securities laws and contains a reconciliation of these non-GAAP financial measures to their most directly comparable financial measures calculated and presented in accordance with accounting principles generally accepted in the United States.
The information in Item 2.02 of this Current Report is being furnished pursuant to General Instructions B.2 of Form 8-K and shall not be deemed filed for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in Item 2.02 of this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933.
Item 9.01. | Financial Statements and Exhibits |
(d) Exhibits.
Exhibit No. |
Description | |
99.1 | Press Release, dated July 23, 2014. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Owens Corning | ||||
Date: July 23, 2014 | By: | /s/ John W. Christy | ||
John W. Christy | ||||
Senior Vice President, General Counsel and Secretary |
EXHIBIT INDEX
Exhibit No. |
Description | |
99.1 | Press Release, July 23, 2014. |
Exhibit 99.1
Media Inquiries: | Investor Inquiries: | |||
Matt Schroder |
Thierry Denis | |||
419.248.8987 |
419.248.5748 |
Owens Corning Reports Second-Quarter 2014 Results
Progress in Insulation and Composites Expected to Drive 2014 Adjusted EBIT Growth;
Second-Quarter Results Reflect Continued Volume Weakness in Roofing
| Insulation and Composites continue to demonstrate year-over-year improvement |
| First-half Roofing financial performance affected by weaker market conditions and volume shortfall |
| Full-year earnings growth in Insulation and Composites is expected to more than offset weaker year-over-year financial performance in Roofing |
| Company continues to expect full-year adjusted EBIT to be greater than the 2013 result of $416 million |
TOLEDO, Ohio July 23, 2014 Owens Corning (NYSE: OC) today reported consolidated net sales of $1.36 billion in the second quarter of 2014, up slightly from $1.35 billion in 2013.
Second-quarter 2014 adjusted earnings were $45 million, or $0.38 per diluted share, down from the adjusted earnings of $68 million, or $0.56 per diluted share, in 2013. Net earnings in the second quarter of 2014 were $21 million, or $0.18 per share, compared to net earnings of $49 million, or $0.41 per diluted share last year. (See Table 3 for a discussion and reconciliation of these items.)
Insulation and Composites delivered improvement in line with expectations through the first half of the year. Continued momentum in these two businesses is expected to more than offset the weaker financial performance in the Roofing business and generate earnings growth for the full year 2014, said Chairman and Chief Executive Officer Mike Thaman.
Consolidated Second Quarter 2014 Results
| Owens Corning continued to perform at a very high level of safety with a Recordable Incident Rate (RIR) of 0.50 for the six months ending June 30, 2014. This is consistent with the rate in the same period in 2013. |
| Adjusted earnings before interest and taxes (adjusted EBIT) in the second quarter of 2014 were $96 million, down from $124 million in 2013. Reported EBIT for the second quarter was $73 million, compared with $118 million during the same period in 2013. (See Table 2.) |
| During the second quarter, Owens Corning repurchased 300,000 shares of the companys common stock for $12 million. As of June 30, 2014, 7.7 million shares remained available for repurchase under the companys current authorization. |
| The companys Board of Directors declared a quarterly cash dividend of $0.16 per common share. The dividend will be payable on July 29, 2014 to shareholders of record as of July 14, 2014. |
Outlook
The Insulation business should continue to benefit from growth in U.S. residential new construction, improved pricing and operating leverage.
The Composites business continues to benefit from stable global economic growth, improved operating performance and pricing. Pricing is expected to be the primary driver of EBIT growth in 2014. Composites pricing is now expected to be at the top end of the previous guidance range of $20 million to $30 million.
The roofing market was down through the first two quarters of this year. The company now expects that the roofing market will be flat to slightly down for full-year 2014 compared to prior year. Volumes in the Roofing business are expected to more closely track the market in the second half than they did in the first half of 2014.
The company estimates a long-term effective tax rate of 28 percent to 30 percent, and a long-term effective cash tax rate of 10 percent to 12 percent on adjusted pre-tax earnings, due to the companys $2.1 billion U.S. tax net operating loss carry forward. The effective book tax rate for 2014 on adjusted earnings is expected to be within the long-term range.
The company expects general corporate expenses to be $100 million to $110 million in 2014, a $20 million cost reduction versus the previous guidance. Capital expenditures in 2014 are expected to total approximately $370 million, a $30 million reduction from our previous guidance. This estimate continues to include an estimated $65 million for the start of construction of a non-wovens facility.
For the full year 2014, the companys adjusted EBIT is expected to be greater than the 2013 result of $416 million.
Next Earnings Announcement
Third-quarter 2014 results will be announced on Wednesday, October 22, 2014.
Conference Call and Presentation
Wednesday, July 23, 2014
11 a.m. Eastern Time
All Callers
Live dial-in telephone number: U.S. 1.888.317.6003, Canada 1.866.284.3684 or other international +1.412.317.6061.
Entry number: 461-4761 (Please dial in 10-15 minutes before conference call start time)
Live webcast: http://services.choruscall.com/links/owens140723.html
Telephone replay available through July 30, 2014. For U.S. and Canada, call 1.877.344.7529 or international +1.412.317.0088. Conference replay number: 100-48-200
Replay of webcast also available until July 23, 2015 at: http://services.choruscall.com/links/owens140723.html
Presentation
To view the slide presentation during the conference call, please log on to the live webcast at: http://investor.owenscorning.com/investor-relations/
About Owens Corning
Owens Corning (NYSE: OC) is a leading global producer of residential and commercial building materials, glass-fiber reinforcements and engineered materials for composite systems. A Fortune® 500 company for 60 consecutive years and in business for more than 75 years, Owens Corning is a market-leading innovator of glass-fiber technology with sales of $5.3 billion in 2013 and about 15,000 employees in 27 countries. Additional information is available at www.owenscorning.com.
This news release 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 may cause actual results to differ materially from those projected in these statements. Such factors include, without limitation: economic and political conditions, including; levels of residential and commercial construction activity; competitive factors; levels of global industrial production; relationships with key customers; industry and economic conditions that affect the market and operating conditions of our customers, suppliers or lenders; availability and cost of credit; our level of indebtedness; weather conditions; pricing factors; labor disputes and litigation; availability and cost of energy and raw materials; difficulties in managing production capacity; issues involving implementation of new business systems; new legislation or other governmental actions; our ability to use our net operating loss carry-forwards; research and development activities; foreign exchange fluctuations; interest rate movements; labor disputes; issues related to acquisitions, divestitures and joint ventures; uninsured losses; achievement of expected synergies, cost reductions and/or productivity improvements; defined benefit plan funding obligations; and, factors detailed from time to time in the companys Securities and Exchange Commission filings. The information in this news release speaks as of July 23, 2014, and is subject to change. The company does not undertake any obligation to update or revise forward-looking statements other than as required by applicable securities laws. Any distribution of this news release after that date is not intended and should not be construed as updating or confirming such information.
Owens Corning Investor Relations News
Table 1
Owens Corning and Subsidiaries
Consolidated Statements of Earnings
(unaudited)
(in millions, except per share amounts)
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
NET SALES |
$ | 1,355 | $ | 1,347 | $ | 2,633 | $ | 2,697 | ||||||||
COST OF SALES |
1,107 | 1,080 | 2,151 | 2,217 | ||||||||||||
|
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|
|
|
|
|
|||||||||
Gross margin |
248 | 267 | 482 | 480 | ||||||||||||
OPERATING EXPENSES |
||||||||||||||||
Marketing and administrative expenses |
130 | 134 | 262 | 267 | ||||||||||||
Science and technology expenses |
20 | 20 | 39 | 38 | ||||||||||||
Charges related to cost reduction actions |
| 1 | 12 | 2 | ||||||||||||
Other (income) expenses, net |
25 | (6 | ) | (12 | ) | (2 | ) | |||||||||
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|
|
|||||||||
Total operating expenses |
175 | 149 | 301 | 305 | ||||||||||||
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|
|||||||||
EARNINGS BEFORE INTEREST AND TAXES |
73 | 118 | 181 | 175 | ||||||||||||
Interest expense, net |
31 | 29 | 58 | 58 | ||||||||||||
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|
|||||||||
EARNINGS BEFORE TAXES |
42 | 89 | 123 | 117 | ||||||||||||
Less: Income tax expense (benefit) |
21 | 39 | (18 | ) | 45 | |||||||||||
Equity in net earnings of affiliates |
1 | | 1 | | ||||||||||||
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|
|||||||||
NET EARNINGS |
22 | 50 | 142 | 72 | ||||||||||||
Less: Net earnings attributable to noncontrolling interests |
1 | 1 | 1 | 1 | ||||||||||||
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|||||||||
NET EARNINGS ATTRIBUTABLE TO OWENS CORNING |
$ | 21 | $ | 49 | $ | 141 | $ | 71 | ||||||||
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EARNINGS PER COMMON SHARE ATTRIBUTABLE TO OWENS CORNING COMMON STOCKHOLDERS |
||||||||||||||||
Basic |
$ | 0.18 | $ | 0.41 | $ | 1.20 | $ | 0.60 | ||||||||
Diluted |
$ | 0.18 | $ | 0.41 | $ | 1.19 | $ | 0.59 | ||||||||
Dividend |
$ | 0.16 | $ | | $ | 0.32 | $ | | ||||||||
WEIGHTED AVERAGE COMMON SHARES |
||||||||||||||||
Basic |
117.4 | 119.1 | 117.6 | 118.8 | ||||||||||||
Diluted |
118.3 | 120.4 | 118.5 | 119.9 |
Owens Corning follows the authoritative guidance referring to Noncontrolling Interest in Consolidated Financial Statements, effective January 1, 2009, which, among other things, changed the presentation format and certain captions of the Consolidated Statements of Earnings and Consolidated Balance Sheets. Owens Corning uses the captions recommended by this standard in its Consolidated Financial Statements such as net earnings attributable to Owens Corning and diluted earnings per common share attributable to Owens Corning common stockholders. However, in the preceding release Owens Corning has shortened this language to net earnings and earnings per share (or a slight variation thereof), respectively.
Table 2
Owens Corning and Subsidiaries
EBIT Reconciliation Schedules
(unaudited)
Adjusting items are shown in the table below (in millions):
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Impairment loss on European Stone Business |
$ | (19 | ) | $ | | $ | (19 | ) | $ | | ||||||
Gain on sale of Hangzhou, China Facility |
| | 45 | | ||||||||||||
Net loss related to Hurricane Sandy |
(4 | ) | (3 | ) | (6 | ) | (14 | ) | ||||||||
Charges related to cost reduction actions and related items |
| (3 | ) | (12 | ) | (12 | ) | |||||||||
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|||||||||
Total adjusting items |
$ | (23 | ) | $ | (6 | ) | $ | 8 | $ | (26 | ) | |||||
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|
The reconciliation from net earnings attributable to Owens Corning to Adjusted EBIT is shown in the table below (in millions):
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
NET EARNINGS ATTRIBUTABLE TO OWENS CORNING |
$ | 21 | $ | 49 | $ | 141 | $ | 71 | ||||||||
Less: Net earnings attributable to noncontrolling interests |
1 | 1 | 1 | 1 | ||||||||||||
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NET EARNINGS |
22 | 50 | 142 | 72 | ||||||||||||
Equity in net earnings of affiliates |
1 | | 1 | | ||||||||||||
Income tax expense |
21 | 39 | (18 | ) | 45 | |||||||||||
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|||||||||
EARNINGS BEFORE TAXES |
42 | 89 | 123 | 117 | ||||||||||||
Interest expense, net |
31 | 29 | 58 | 58 | ||||||||||||
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|||||||||
EARNINGS BEFORE INTEREST AND TAXES |
73 | 118 | 181 | 175 | ||||||||||||
Less: adjusting items from above |
(23 | ) | (6 | ) | 8 | (26 | ) | |||||||||
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|||||||||
ADJUSTED EBIT |
$ | 96 | $ | 124 | $ | 173 | $ | 201 | ||||||||
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|
For purposes of internal review of Owens Cornings year-over-year operational performance, management excludes from net earnings attributable to Owens Corning certain items it believes are not the result of current operations. The adjusted financial measure resulting from these adjustments is used internally by Owens Corning for various purposes, including reporting results of operations to the Board of Directors, analysis of performance, and related employee compensation measures. Although management believes that these adjustments result in a measure that provides it a useful representation of its operational performance, the adjusted measure should not be considered in isolation or as a substitute for net earnings attributable to Owens Corning as prepared in accordance with accounting principles generally accepted in the United States.
Table 3
Owens Corning and Subsidiaries
EPS Reconciliation Schedules
(unaudited)
(in millions, except per share data)
For purposes of internal review of Owens Cornings year-over-year operational performance, management excludes from net earnings attributable to Owens Corning certain items it believes are not the result of current operations. The adjusted financial measures resulting from these adjustments are used internally by Owens Corning for various purposes, including reporting results of operations to the Board of Directors, analysis of performance and related employee compensation measures. Although management believes that these adjustments result in measures that provide it a useful representation of its operational performance, the adjusted measures should not be considered in isolation or as a substitute for net earnings attributable to Owens Corning as prepared in accordance with accounting principles generally accepted in the United States.
A reconciliation from net earnings attributable to Owens Corning to Adjusted Earnings and a reconciliation from diluted earnings per share to adjusted diluted earnings per share are shown in the tables below:
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
RECONCILIATION TO ADJUSTED EARNINGS |
||||||||||||||||
Net earnings attributable to Owens Corning |
$ | 21 | $ | 49 | $ | 141 | $ | 71 | ||||||||
Adjustment to remove adjusting items, net of tax |
21 | 4 | | 19 | ||||||||||||
Adjustment to remove significant tax reserve reversals* |
| | (74 | ) | | |||||||||||
Adjustment to tax expense (benefit) to reflect pro forma tax rate* |
3 | 15 | 13 | 13 | ||||||||||||
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|||||||||
ADJUSTED EARNINGS |
$ | 45 | $ | 68 | $ | 80 | $ | 103 | ||||||||
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RECONCILIATION TO ADJUSTED DILUTED EARNINGS PER SHARE ATTRIBUTABLE TO OWENS CORNING COMMON STOCKHOLDERS |
||||||||||||||||
DILUTED EARNINGS PER COMMON SHARE ATTRIBUTABLE TO OWENS CORNING COMMON STOCKHOLDERS |
$ | 0.18 | $ | 0.41 | $ | 1.19 | $ | 0.59 | ||||||||
Adjustment to remove adjusting items, net of tax |
0.18 | 0.03 | | 0.16 | ||||||||||||
Adjustment to remove significant tax reserve reversals* |
| | (0.62 | ) | | |||||||||||
Adjustment to tax expense (benefit) to reflect pro forma tax rate* |
0.02 | 0.12 | 0.11 | 0.11 | ||||||||||||
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ADJUSTED DILUTED EARNINGS PER SHARE ATTRIBUTABLE TO OWENS CORNING COMMON STOCKHOLDERS |
$ | 0.38 | $ | 0.56 | $ | 0.68 | $ | 0.86 | ||||||||
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RECONCILIATON TO DILUTED SHARES OUTSTANDING |
||||||||||||||||
Weighted average shares outstanding used for basic earnings per share |
117.4 | 119.1 | 117.6 | 118.8 | ||||||||||||
Non-vested restricted shares |
0.4 | 0.7 | 0.4 | 0.6 | ||||||||||||
Options to purchase common stock |
0.5 | 0.6 | 0.5 | 0.5 | ||||||||||||
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Diluted shares outstanding |
118.3 | 120.4 | 118.5 | 119.9 | ||||||||||||
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* | For comparability, in 2014, we have used a pro-forma effective tax rate of 29% (midpoint of guidance) that excludes the resolution of a significant uncertain tax position and the reversal of a valuation allowance recorded in prior years against certain European net deferred tax assets. In 2013 we have used an effective tax rate of 27% as this was the effective tax rate of the Company in 2013. |
Table 4
Owens Corning and Subsidiaries
Consolidated Balance Sheets
(unaudited)
(in millions)
June 30, | Dec. 31, | |||||||
2014 | 2013 | |||||||
ASSETS |
||||||||
CURRENT ASSETS |
||||||||
Cash and cash equivalents |
$ | 81 | $ | 57 | ||||
Receivables, less allowances of $13 at June 30, 2014, and $14 at Dec. 31, 2013 |
848 | 683 | ||||||
Inventories |
886 | 810 | ||||||
Assets held for sale - current |
14 | 29 | ||||||
Other current assets |
231 | 269 | ||||||
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Total current assets |
2,060 | 1,848 | ||||||
Property, plant and equipment, net |
2,913 | 2,932 | ||||||
Goodwill |
1,166 | 1,166 | ||||||
Intangible assets |
1,026 | 1,040 | ||||||
Deferred income taxes |
406 | 436 | ||||||
Other non-current assets |
225 | 225 | ||||||
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|||||
TOTAL ASSETS |
$ | 7,796 | $ | 7,647 | ||||
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LIABILITIES AND EQUITY |
||||||||
CURRENT LIABILITIES |
||||||||
Accounts payable and accrued liabilities |
$ | 880 | $ | 988 | ||||
Short-term debt |
17 | 1 | ||||||
Liabilities held for sale - current |
4 | | ||||||
Long-term debt - current portion |
4 | 3 | ||||||
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|||||
Total current liabilities |
905 | 992 | ||||||
Long-term debt, net of current portion |
2,271 | 2,024 | ||||||
Pension plan liability |
316 | 336 | ||||||
Other employee benefits liability |
234 | 242 | ||||||
Deferred income taxes |
28 | 23 | ||||||
Other liabilities |
131 | 200 | ||||||
OWENS CORNING STOCKHOLDERS EQUITY |
||||||||
Preferred stock, par value $0.01 per share (a) |
| | ||||||
Common stock, par value $0.01 per share (b) |
1 | 1 | ||||||
Additional paid in capital |
3,939 | 3,938 | ||||||
Accumulated earnings |
758 | 655 | ||||||
Accumulated other comprehensive deficit |
(301 | ) | (297 | ) | ||||
Cost of common stock in treasury (c) |
(524 | ) | (504 | ) | ||||
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|
|||||
Total Owens Corning stockholders equity |
3,873 | 3,793 | ||||||
Noncontrolling interests |
38 | 37 | ||||||
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|
|||||
Total equity |
3,911 | 3,830 | ||||||
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|
|||||
TOTAL LIABILITIES AND EQUITY |
$ | 7,796 | $ | 7,647 | ||||
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|
(a) | 10 shares authorized; none issued or outstanding at June 30, 2014, and Dec. 31, 2013 |
(b) | 400 shares authorized; 135.5 issued and 117.6 outstanding at June 30, 2014; 135.5 issued and 117.8 outstanding at Dec. 31, 2013 |
(c) | 17.9 shares at June 30, 2014, and 17.7 shares at Dec. 31, 2013 |
Table 5
Owens Corning and Subsidiaries
Consolidated Statements of Cash Flows
(unaudited)
(in millions)
Six Months Ended | ||||||||
June 30, | ||||||||
2014 | 2013 | |||||||
NET CASH FLOW USED FOR OPERATING ACTIVITIES |
||||||||
Net earnings |
$ | 142 | $ | 72 | ||||
Adjustments to reconcile net earnings to cash used for operating activities: |
||||||||
Depreciation and amortization |
154 | 157 | ||||||
Gain on sale of fixed assets |
(47 | ) | | |||||
Impairment loss on European Stone Business |
19 | | ||||||
Deferred income taxes |
(29 | ) | 37 | |||||
Provision for pension and other employee benefits liabilities |
9 | 18 | ||||||
Stock-based compensation expense |
14 | 14 | ||||||
Other non-cash |
(13 | ) | (12 | ) | ||||
Change in working capital |
(336 | ) | (254 | ) | ||||
Pension fund contribution |
(24 | ) | (20 | ) | ||||
Payments for other employee benefits liabilities |
(12 | ) | (11 | ) | ||||
Other |
6 | (16 | ) | |||||
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|
|
|||||
Net cash flow used for operating activities |
(117 | ) | (15 | ) | ||||
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|
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NET CASH FLOW USED FOR INVESTING ACTIVITIES |
||||||||
Additions to plant and equipment (including alloy) |
(142 | ) | (125 | ) | ||||
Proceeds from the sale of assets (including alloy) or affiliates, net |
77 | | ||||||
Investment in subsidiaries and affiliates, net of cash acquired |
| (52 | ) | |||||
Proceeds from Hurricane Sandy insurance claims |
| 15 | ||||||
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|
|
|||||
Net cash flow used for investing activities |
(65 | ) | (162 | ) | ||||
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NET CASH FLOW PROVIDED BY FINANCING ACTIVITIES |
||||||||
Proceeds from senior revolving credit and receivables securitization facilities |
769 | 799 | ||||||
Payments on senior revolving credit and receivables securitization facilities |
(522 | ) | (621 | ) | ||||
Payments on long-term debt |
(1 | ) | (1 | ) | ||||
Net increase in short-term debt |
16 | 15 | ||||||
Cash dividends paid |
(19 | ) | | |||||
Purchases of treasury stock |
(44 | ) | (9 | ) | ||||
Other |
7 | 14 | ||||||
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Net cash flow provided by financing activities |
206 | 197 | ||||||
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|||||
Effect of exchange rate changes on cash |
| (3 | ) | |||||
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|||||
Net increase in cash and cash equivalents |
24 | 17 | ||||||
Cash and cash equivalents at beginning of period |
57 | 55 | ||||||
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|||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
$ | 81 | $ | 72 | ||||
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|
Table 6
Owens Corning and Subsidiaries
Segment and Business Information
(unaudited)
Composites
The table below provides a summary of net sales, EBIT and depreciation and amortization expense for the Composites segment (in millions):
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net sales |
$ | 505 | $ | 472 | $ | 982 | $ | 931 | ||||||||
% change from prior year |
7 | % | -5 | % | 5 | % | -4 | % | ||||||||
EBIT |
$ | 37 | $ | 32 | $ | 64 | $ | 41 | ||||||||
EBIT as a % of net sales |
7 | % | 7 | % | 7 | % | 4 | % | ||||||||
Depreciation and amortization expense |
$ | 34 | $ | 34 | $ | 68 | $ | 66 |
Building Materials
The table below provides a summary of net sales, EBIT and depreciation and amortization expense for the Building Materials segment and our businesses within this segment (in millions):
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net sales |
||||||||||||||||
Insulation |
$ | 447 | $ | 415 | $ | 802 | $ | 745 | ||||||||
Roofing |
437 | 508 | 934 | 1,115 | ||||||||||||
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|
|||||||||
Total Building Materials |
$ | 884 | $ | 923 | $ | 1,736 | $ | 1,860 | ||||||||
% change from prior year |
-4 | % | -2 | % | -7 | % | 0 | % | ||||||||
EBIT |
||||||||||||||||
Insulation |
$ | 18 | $ | 4 | $ | 19 | $ | (17 | ) | |||||||
Roofing |
62 | 116 | 142 | 235 | ||||||||||||
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|
|
|
|
|
|
|
|||||||||
Total Building Materials |
$ | 80 | $ | 120 | $ | 161 | $ | 218 | ||||||||
EBIT as a % of net sales |
9 | % | 13 | % | 9 | % | 12 | % | ||||||||
Depreciation and amortization expense |
||||||||||||||||
Insulation |
$ | 26 | $ | 27 | $ | 51 | $ | 53 | ||||||||
Roofing |
10 | 9 | 19 | 19 | ||||||||||||
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|
|
|
|
|
|
|
|||||||||
Total Building Materials |
$ | 36 | $ | 36 | $ | 70 | $ | 72 | ||||||||
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|
Table 7
Owens Corning and Subsidiaries
Corporate, Other and Eliminations
(unaudited)
Corporate, Other and Eliminations
The table below provides a summary of EBIT and depreciation and amortization expense for the Corporate, Other and Eliminations category (in millions):
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Impairment loss on European Stone Business |
$ | (19 | ) | $ | | $ | (19 | ) | $ | | ||||||
Net loss related to Hurricane Sandy |
(4 | ) | (3 | ) | (6 | ) | (14 | ) | ||||||||
Gain on sale of Hangzhou, China facility |
| | 45 | | ||||||||||||
Charges related to cost reduction actions and related items |
| (3 | ) | (12 | ) | (12 | ) | |||||||||
General corporate expense and other |
(21 | ) | (28 | ) | (52 | ) | (58 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
EBIT |
$ | (44 | ) | $ | (34 | ) | $ | (44 | ) | $ | (84 | ) | ||||
|
|
|
|
|
|
|
|
|||||||||
Depreciation and amortization |
$ | 8 | $ | 9 | $ | 16 | $ | 19 | ||||||||
|
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