Construction and housing market slowdown impacts earnings

  • Owens Corning expects 4Q sales to be slightly lower than the previous year
  • The company cites a slowdown in construction and housing markets globally
  • Forecasted earnings before interest and taxes margins in the mid-teen percentage range
  • Estimated effective cash tax rate on 2023 adjusted net income reduced to 24%-26%
  • Depreciation and amortization expenses expected to be $510 million to $520 million
  • General corporate expenses estimated to be between $215 million and $225 million
  • Interest expense projected to be between $70 million and $80 million
  • Capital additions outlay estimated at $520 million for the period

Owens Corning, the building materials manufacturer, has issued a warning that its fourth-quarter sales will be slightly lower compared to the same period last year. The company attributes this decline to a slowdown in construction and housing markets worldwide. Additionally, Owens Corning forecasts mid-teen percentage range earnings before interest and taxes margins for the fourth quarter. In an effort to optimize financials, the company has reduced the estimated effective cash tax rate on 2023 adjusted net income to a range of 24% to 26%. Furthermore, depreciation and amortization expenses are expected to be between $510 million and $520 million, while general corporate expenses for the quarter are estimated to be between $215 million and $225 million. Interest expense is projected to fall within a range of $70 million to $80 million. Owens Corning also anticipates a capital additions outlay of approximately $520 million for the period.

Public Companies: Owens Corning (Unknown)
Private Companies:
Key People:

Factuality Level: 8
Justification: The article provides specific information about Owens Corning’s warning of lower sales in the fourth quarter, citing a slowdown in construction and housing markets. It also includes details about the company’s forecasted earnings, tax rate, depreciation and amortization expenses, general corporate expenses, interest expense, and capital additions. The information provided seems to be based on the company’s statements and estimates, which adds to the credibility of the article. However, it lacks any external sources or analysis to verify the accuracy of the information.

Noise Level: 3
Justification: The article provides specific information about Owens Corning’s warning of lower sales in the fourth quarter due to a slowdown in construction and housing markets. It also includes details about the company’s forecasted earnings, tax rate, depreciation and amortization expenses, general corporate expenses, interest expense, and capital additions. The information is relevant and focused on the company’s financial performance, without diving into unrelated territories. However, the article lacks analysis, evidence, or actionable insights, which lowers its overall noise level rating.

Financial Relevance: Yes
Financial Markets Impacted: Construction and housing markets

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses a slowdown in construction and housing markets, which can have an impact on financial markets and companies in the industry.