Owens Corning

Owens Corning 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. Its building materials segment, which accounts for more than 60% of sales, makes insulation, roofing and asphalt, and other materials for the residential and commercial markets. Its composite products segment makes glass fiber reinforcement materials for the transportation, industrial, infrastructure, marine, wind energy, and consumer markets. Owens Corning traces its historical roots to 1938.

Geographic Reach

Owens Corning has about 35 facilities in about 30 countries in the Americas, Europe, Africa, and the Asia/Pacific region. The US generates about 70% of its total sales.

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 roofing manufacturers.

The company spends about $110 million each year on advertising.

Financial Performance

Owens Corning saw its revenues fall 3% from $5.3 billion in 2011 to nearly $5.2 billion in 2012. After enjoying three straight years of profits, the company suffered a net loss of $19 million in 2012.

The company saw decreases in all its segments, especially composites, which dipped by 6% in 2012. Net sales in Europe also plunged by 61%, primarily due to lower demand for its products and unfavorable foreign currency translation rates. A slowly recovering economy in the US construction sector caused domestic sales to fall by nearly 50% for the year.

The company's net loss was the result of the lower revenue coupled with higher operating expenses related to cost reduction initiatives and additional interest expenses.

Strategy

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. Owens Corning has opened a new reinforcements manufacturing plant and a glass fiber manufacturing facility. The locations significantly increased Owens Corning's capacity in China and support growing demand in Asian markets. The company also is expanding other facilities in Russia and Mexico. At the same time, Owens Corning is balancing out composites production by reducing inventory in places such as Europe, where demand has been lower.

Owens Corning also makes acquisitions to fortify its core segments. In 2013 it strengthened its insulation portfolio by obtaining Thermafiber, a maker of mineral wool commercial and industrial insulation products. 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.

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Owens Corning


1 Owens Corning Pkwy
Toledo, OH 43659-0001
Phone: 1 (419) 248-8000
Fax: 1 (419) 2485337
www.owenscorning.com

STATS


  • Employer Type: Public
  • Stock Symbol: OC, OC/WS/B,
  • Stock Exchange: , NYSE, NYSE
  • Chairman, President, and CEO: Michael Thaman
  • Chairman, President, and CEO: Michael Thaman
  • VP and CIO: Steve Zerby

Major Office Locations

  • Toledo, OH