Owens Corning 3Q falls short

TOLEDO, Ohio -- Owens Corning reported a drop in its third-quarter profit on Wednesday due to lower demand for roofing and composites.

The construction and industrial-materials company warned investors earlier this month that weaker demand for roofing in the U.S. and lower industrial production, particularly in Europe, hurt its revenue. It trimmed its full-year forecast and said a recent decline in roofing shingle prices was not likely to improve for the rest of the year.

Owens Corning earned $44 million, or 37 cents per share, for the quarter that ended Sept. 30 versus $124 million, or $1.01 per share, in the same quarter last year. The company earned 33 cents per share on an adjusted basis, excluding one-time items. Revenue fell to $1.28 billion from $1.45 billion.

Analysts expected adjusted earnings of 34 cents per share on revenue of $1.33 billion, according to FactSet.

CEO Mike Thaman said the company was disappointed with the results. He said the roofing and composite business continue to face tough conditions, but he noted that its insulation business was profitable for the first time in four years thanks to an uptick in U.S. construction.

Owens Corning still expects adjusted earnings before interest and taxes between $280 million and $310 million for the full year.

Shares rose 13 cents to $32.49 in afternoon trading. The stock remains in the middle of its 52-week trading range of $24.46 to $38.