U.S. News

Owens Corning Posts Operating Loss on Weak Housing Market


Building materials maker Owens Corning , which emerged from bankruptcy in October, on Wednesday posted a fourth-quarter loss from continuing operations due to the weak U.S. housing market.

The company also said it was considering selling its Siding Solutions and Fabwel businesses.

Owens Corning Earnings

Excluding gains and bankruptcy-related accounting changes, the company reported a loss from continuing operations of $9 million, compared with year-earlier earnings of $230 million.

Revenue fell 13.8% to $1.48 billion.

Net income was $7.7 billion, up from $338 million a year earlier. The results included gains of $5.86 billion on the settlement of liabilities and $3.05 billion from accounting adjustments.

The Toledo, Ohio-based company said it expected the U.S. housing market to continue to slow this year, and it sees the trend taking a toll on its first-quarter results.

For 2007, the company forecast adjusted income from operations of $415 million, down from $569 million last year.

It said that figure factors out income and expenses from its Chapter 11 proceedings, asbestos liabilities, restructuring and other activities and accounting changes.