Owens Cornings Swings To Profit, Shares Surge - Update

(RTTNews) - Owens Corning (OC) Wednesday reported a swing to a profit in the fourth quarter, driven largely by revenue growth and lower operating costs. Both earnings and revenues for the quarter trumped analysts' expectations.

The composites and building materials company also declared its first quarterly dividend in 14 years. Shares of Owens Corning soared and is currently up 11 percent on the New York Stock Exchange.

Toledo, Ohio-based Owens Corning reported a fourth-quarter profit of $82 million or $0.69 per share, compared to a loss of $56 million or $0.47 per share last year.

Results for the year-ago quarter were impacted by non-recurring items, including loss on debt extinguishment of $74 million.

On an adjusted basis, quarterly earnings improved to $0.44 per share from $0.11 per share a year ago. On average, 20 analysts polled by Thomson Reuters expected earnings of $0.27 per share for the quarter. Analysts' estimates typically exclude one-time items.

Sales for the quarter grew to $1.28 billion from $1.16 billion a year ago. Sixteen analysts had a consensus revenue estimate of $1.21 billion for the quarter.

Commenting on the results, Chief Executive Mike Thaman indicated the company's insulation business returning to profitability as an important achievement. Owens Corning's all three businesses improved, benefiting from a "stable and growing global economy and a recovering U.S. housing market."

The company expects similar growth in 2014 and is working to maintain the momentum established a year ago.

Operating expenses for the quarter dropped to $129 million from $154 million a year ago, due mainly to the absence of charges related to cost reduction actions and higher gains from other income.

Owens Corning also declared a quarterly dividend of 16 cents per share payable on April 3, to shareholders of record as of March 14. The company is paying the dividend for the first time since 2000.

OC is currently trading at $44.09, up $4.35 or 10.95%, on a volume of 5.1 million shares.