Yahoo Finance Owens-Corning Inc (OC) (Q1 2024) Earnings Call Transcript Highlights: Strategic Moves and ...
Adjusted EBIT Margin: 19%
Adjusted EBITDA Margin: 25%
Net Sales: In line with prior year
Adjusted Diluted EPS: $3.59
Dividends and Share Repurchases: $182 million returned to shareholders
Free Cash Flow: Net outflow of $128 million
Roofing Revenue Growth: 7%
Insulation Revenue: $904 million, down 2%
Composites Sales: $523 million, down 11%
Release Date: April 24, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Can you discuss the impact of prior price increases on the Insulation business and any new price increase announcements for Q2? A: Todd W. Fister, Executive VP & CFO of Owens Corning, explained that the impact seen in Q2 is largely from the price increase announced late in 2023, which began to take effect in Q1 and is expected to continue into Q2. A new price increase has been announced for June 2024, which is not significantly reflected in Q2 results but may influence Q3 and Q4.
Q: How did the exit from the packaging business affect the Roofing segment's performance? A: Brian D. Chambers, President, CEO & Chair of Owens Corning, noted that the exit from the packaging business, which accounted for about $25 million quarterly, is consistent with previous forecasts and will continue to impact the next few quarters similarly.
Q: How does Owens Corning view the potential consolidation of Home Depot and SRS, considering both are significant customers? A: Brian D. Chambers stated that the consolidation is consistent with trends seen in building material distribution and does not significantly alter Owens Corning's strategy. The company plans to maintain a broad distribution strategy and focus on contractor engagement to drive performance.
Q: What are your expectations for the Composites segment pricing in Q2? A: Brian D. Chambers mentioned that while overall revenues in Composites were down, demand stabilization and spot price stability are observed. Pricing was down by about 4% in Q1 year-over-year and is expected to continue similarly in Q2.
Q: Can you provide an update on the performance and integration of the spray foam business acquired a few years ago? A: Todd W. Fister discussed the growth in spray foam volumes and highlighted Owens Corning's strategy to participate in markets where spray foam is a preferred solution, while also continuing to support other insulation materials like fiberglass, which remains a strong focus for the company.
Q: What are the plans for manufacturing investments in the Insulation segment? A: Todd W. Fister indicated that Owens Corning is evaluating capital-efficient options to support expected market growth in North American housing, suggesting potential capacity additions and productivity enhancements in the future.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
