Owens Corning (OC) operates in the PINK. Famous for its Pink
Panther mascot and its trademarked PINK glass fiber insulation, the
company is a top global maker of building and composite material
systems. The building materials company makes insulation, roofing,
fiber-based glass reinforcements and other materials for the
residential and commercial markets. Its composite products business
makes glass fiber reinforcement materials for the transportation,
industrial, infrastructure, marine, wind energy, and consumer
markets. Owens Corning traces its historical roots to 1938.
To streamline the company's management and cut costs,
Owens Corning in late 2014 reorganized into three business
segments: Composites, which generated 36% of the company's total
revenue in 2014 and includes reinforcements and downstream
businesses; Insulation (32% of revenues); and Roofing (32% of
Within the Composites segment, the company's
reinforcements business manufactures, fabricates and sells glass
reinforcements in the form of fiber. Its downstream business
manufactures and sells glass fiber products in the form of fabrics,
mat, veil, and other specialized products.
Ohio-based Owens Corning has about 90 manufacturing facilities
in some 27 countries in the Americas, Europe, Africa, and the
Asia/Pacific region. The US generates about 70% of its total sales,
while Europe and the Asia Pacific regions each contribute more than
10% to sales. Canada and other countries also contribute around 10%
to total revenue.
Sales and Marketing
Owens Corning sells shingles and roofing accessories primarily
through home centers, lumberyards, retailers, distributors, and
contractors in the US. Other asphalt products are sold internally
to manufacture residential roofing products and externally to other
The company has decreased its advertising spend in recent years.
It spent $100 million on marketing and advertising in 2014, down
from $105 million and $109 million in 2013 and 2012,
Owens Corning's sales have struggled to grow in recent years as
its roofing product sales have continued to decline. The company's
profits have also remain depressed since its $19 million loss in
Owen's revenues dipped by less than 1% to $5.27 billion in 2014 as
its Roofing business shrank by double digits on sales volume and
selling price declines. Offsetting much of this, Owen's Insulation
division sales grew by 6% in part thanks to the company's 2013
acquisition of Thermafiber, but mostly thanks to higher selling
prices and a 2% sales volume uptick as the industrial sector
continued to strengthen. The Composite division's sales also
improved by 5% thanks to a combination of higher sales volumes and
prices, and a favorable customer mix as housing starts continued to
improve around the world.
Despite the dip in revenue in 2014, Owen Corning's net income
jumped by 11% to $226 million for the year as the company paid less
in income taxes during the year (in the form of a reimbursement as
it paid too much in a previous year). Its operating cash also
climbed by 8% to $441 million on higher cash earnings.
Owens Corning's insulation business remains as the business'
main strength, and has been growing with the strengthening housing,
commercial and industrial construction markets, and as more
homeowners have been able to spend on remodeling. In late 2014 the
company reported that the company remained as North America's
largest producer of residential, commercial, and industrial
insulation, and the second-largest producer of extruded polystyrene
Growing global demand has motivated the company to make investments
in its composites business, which supplies the industrial,
energy, and residential markets. Its OCV Reinforcements and
OCV Technical Fabrics units provide lightweight alternatives for
steel, wool, and aluminum.
To meet growing demand for bio-based products, Owens Corning in
late 2014 broke ground on a new advanced-technology facility in
Gastonia, North Carolina. It would offer manufacturing flexibility
to produce different widths of the company's Sustaina non-woven
glass fiber fabric.
In the past, Owens Corning has also made acquisitions of
companies in similar markets to fortify its service offerings at
home and abroad.
Mergers and Acquisitions
In June 2013, Owens Corning strengthened its insulation
portfolio by purchasing Thermafiber, Inc., a maker of mineral wool
commercial and industrial insulation products.Thermafiber's
products provide fire protection, sound control, and energy
conservation and are found is six of the 12 tallest buildings in
the world, including One World Trade Center and the Burj Khalifa
Tower in Dubai.
In March 2013, the company acquired Tanaka Kikinzoku (Suzhou) Co.
(TKS), a maker of glass fiber bushings and other parts for the
glass fiber industry in China. The TKS purchase enables Owens
Corning to better serve the Chinese market, which is the largest
and fastest growing glass fiber market in the world. TKS was
integrated into Owens Corning's GlassMetal Services business.
In 2011, Owens Corning enhanced its loosefill
(blow-in) insulation business with the acquisition of FiberTEK
Insulation and FiberTEK Insulation West. The deal included
manufacturing plants in Florida and Utah.