The Toledo, Ohio, USA-based company, a global producer of building materials, glass fibre reinforcements and engineered materials for composite systems, reports second quarter (Q2) 2009 net earnings of $33 million, compared with $41 million in 2008.

Owens Corning financial results second quarter 2009 (US$ millions, unaudited).
  Q2 2009 Q2 2008 First half 2009 First half 2008
Net sales 1219 1574 2293 2927
EBIT* 88 74 70 95
Net earnings 33 42 5 29
*Earnings before interest & taxes


Composites

Owens Corning's Composites business segment includes its Reinforcements business, which manufactures, fabricates and sells glass reinforcements in the form of fibre, and the Downstream business, which manufactures and sells glass fibre products in the form of fabrics, mat, veil and other specialised products.

Composites segment second quarter 2009 results (US$ million, unaudited).
  Q2 2009 Q2 2008 First half 2009 First half 2008
Net sales (% change from prior year) 391 (-41%) 660 (70%) 736 (-44%) 1326 (76%)
EBIT (19) 71 (37) 135


The global economic crisis has led to lower sales in both the Reinforcements and Downstream businesses for the three- and six-month periods ended 30 June 2009 as compared to the same periods in 2008. The favourable trend in demand for Reinforcements that began in the first quarter of 2009 continued throughout the second quarter.

EBIT was significantly lower in the second quarter and first half of 2009, compared to the same periods in 2008, primarily as a result of lower sales volumes, including the impact of under-utilisation of production capacity.

Outlook

Owens Corning expects the business environment to remain challenging through the second half of 2009.

In the Composites segment, the company believes that the improved demand in the Reinforcements business seen during the first and second quarters of 2009 will continue through the remainder of the year. Production is expected to be maintained near current levels to reduce inventories. 

The continued weakness in the US housing industry is expected to negatively affect demand in Owens Corning's Building Materials segment throughout the remainder of 2009.