Owens Corning posts 3Q profit

Owens Corning moves to 3rd-quarter profit on absence of hefty charge in year-ago period

• On 11:59 am EDT, Wednesday October 28, 2009

TOLEDO, Ohio (AP) -- Owens Corning Inc. said Wednesday it returned to profitability in the third quarter in contrast to a big loss a year ago related to an accounting charge.

The building materials company's revenue fell 17 percent amid the slump in the housing industry but it has been raising its prices to account for raw material costs, particularly asphalt.

"The aggressive actions we've taken to reduce our costs and inventory are paying off," said Mike Thaman, chairman and chief executive.

He said the roofing business turned in an outstanding performance while its composite materials business returned to profitability due to cost cutting and improving demand.

Owens' shares rose 55 cents, or 2.5 percent, to $22.77 in midday trading. They have traded in a range of $5.08 to $26.26 over the last year.

Owens Corning earned $80 million, or 63 cents per share, compared with a loss of $807 million, or $6.35 per share, a year earlier.

The year-ago loss reflected a $901 million charge related to an accounting valuation allowance.

The company reported an adjusted profit of 61 cents per share for the current quarter, which excluded a tax expense adjustment.

Analysts predicted earnings of 39 cents per share, according to a Thomson Reuters survey. Those estimates typically exclude one-time items.

Sales fell to $1.35 billion from $1.63 billion. Still, the latest results topped Wall Street's $1.31 billion estimate.

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