Owens Corning Sales Take Loss
TOLEDO, Ohio (AP) _ Building supply maker Owens Corning said Thursday that it lost $10 million in the first quarter largely because of costs associated with its filing for bankruptcy protection.
A slowdown in home building and higher energy costs also caused sales to drop in the quarter. Revenue fell 15 percent from $1.25 billion a year ago to $1.06 billion.
Toledo-based Owens Corning, which filed for bankruptcy protection in October because of rising costs from asbestos lawsuits, reported a net loss of $10 million for the quarter that ended March 31 compared with a profit of $48 million a year ago.
The quarter included $42 million in charges for restructuring and $21 million in bankruptcy reorganization charges.
Excluding those charges, the company earned $46 million compared to $105 million in the quarter last year.
The company’s stock, which still is listed on the New York Stock Exchange despite the bankruptcy filing, was trading at $2.51, down 17 cents Thursday. The stock dropped to as low as 50 cents in the fall and has been rising gradually in recent months.
Owens Corning, which makes products including insulation and roofing materials, filed for bankruptcy protection after it determined that it could not keep up with the costs of asbestos lawsuits.
It has paid or agreed to pay $5 billion in asbestos claims. It faces about $2 billion more in asbestos payouts even though it stopped selling insulation that contained asbestos more than 25 years ago.
Owens Corning lost $478 million on sales of $4.9 billion last year. Much of the loss was attributed to asbestos liability expenses.