Following strong first-half demand in the US roofing market, Owens Corning has reaffirmed its outlook for 2010 during its second quarter earnings call. This is based, in part, on its expectation that full-year US roofing market demand would be broadly flat with 2009, absent additional storm activity.

However, the weakness in market demand in June and July noted on the second quarter earnings call has persisted throughout the third quarter. In light of this, Owens Corning now estimates that US market demand for roofing shingles will be approximately 10% lower for the full year 2010 than it was in 2009. Much of this fall in demand has occurred in the third quarter where a reduction in customer inventories has contributed to a fall of approximately 35% in market demand from the third quarter of 2009.

Despite lower demand, Owens Corning says the Roofing business has continued to perform well and, in line with its prior guidance, it believes that Roofing EBIT margins will exceed 20% for the third quarter and also for the full year 2010.

Owens Corning also confirms that its other two major businesses, Insulation and Composites, are performing in line with prior guidance.

Owens Corning previously stated that it was on track to deliver as much as US$450 million in adjusted EBIT in 2010. Based on its revised outlook for US roofing market demand, The company believes that the higher end of the guidance is no longer achievable. The company expects that its 2010 adjusted EBIT will grow significantly from 2009.

Owens Corning (NYSE: OC), headquartered in Toledo, Ohio, USA, is a global producer of residential and commercial building materials, glass fibre reinforcements and engineered materials for composite systems