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.
Owens Corning is organized in three business segments:
Composites, which generated 34% of the company's total revenue in
2015 and includes reinforcements and downstream businesses;
Insulation (34% of revenues); and Roofing (32% of revenues).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
Ohio-based Owens Corning has about 88 manufacturing facilities
in some 25 countries in the Americas, Europe, Africa, and the
Asia/Pacific region. The US generates about 69% of its sales, while
Europe, the Asia/Pacific, and Canada and other countries contribute
12%, 10%, and 9%, respectively.
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 $98 million on marketing and advertising in 2015, down
from $100 million in 2014, $105 million in 2013, and $109 million
Owens Corning's revenue rose 2% to $5.35 billion in 2015 from
$5.26 billion in 2014, primarily on a 6% sales increase in the
insulation business. Insulation benefited from higher sales volumes
of about 5% and higher selling prices.
The company's net income continued a string of increases with a
whopping 46% jump to $330 million in 2015 from 2014. Added to the
higher revenue, OC gained from extinguishment of debt related to
its purchase of its headquarters facility; the building had been
OC's operating cash flow leaped $742 million n 2015, compared to
$452 million in 2014.
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.The company
reports that it is North America's largest producer of residential,
commercial, and industrial insulation, and the second-largest
producer of extruded polystyrene foam insulation.
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 2016 Owens Corning acquired InterWrap, a leading manufacturer
of roofing underlayment and packaging materials, for US$450
Also in 2016 the company agreed to buy the glass non-wovens and
fabrics businesses of Ahlstrom, the fiber-based materials company
based in Helsinki, Finland, for US$79.5 million (€73 million).