Owens ning(OC)2025-02-24 11:03Financial Performance - Net earnings attributable to Owens Corning decreased to $647 million in 2024 from $1,196 million in 2023[158]. - Adjusted EBIT increased to $2,038 million in 2024 compared to $1,805 million in 2023, with segment EBIT performance showing increases in Roofing and Insulation segments[158]. - Net sales rose by $1,298 million to $10,975 million in 2024, primarily driven by the Doors segment due to the Masonite acquisition[169]. - Gross margin increased by $571 million to $3,254 million in 2024, attributed to the Doors segment and higher selling prices[170]. - Operating income decreased to $1,127 million in 2024 from $1,812 million in 2023, indicating a decline of 37.8%[317]. - Total comprehensive earnings attributable to Owens Corning were $460 million in 2024, down from $1,374 million in 2023[320]. - Net earnings for 2024 were $647 million, a decrease of 45.8% compared to $1,193 million in 2023[327]. Segment Performance - In the Roofing segment, net sales increased by $22 million to $4,052 million, with a 1% increase from the prior year[186]. - EBIT in the Roofing segment rose by $124 million to $1,298 million, representing 32% of net sales, up from 29% in 2023[186]. - Insulation segment net sales increased by $24 million to $3,692 million, driven by higher selling prices of $81 million[190]. - EBIT in the Insulation segment increased by $63 million to $682 million, with EBIT as a percentage of net sales rising to 18%[190]. - The new Doors segment generated net sales of $1,448 million and EBIT of $99 million following the acquisition of Masonite on May 15, 2024[196]. - Composites segment net sales decreased by $168 million to $2,118 million, with EBIT declining by $27 million to $215 million[200]. Acquisition and Impairment - The Company recorded a $483 million impairment charge related to the strategic review of the glass reinforcements business in 2024[173]. - A loss of $91 million was recorded on the sale of the building materials business in China and Korea, classified as held for sale[172]. - The Masonite acquisition cost $3.2 billion, funded primarily through debt, and is expected to enhance the Company's growth platform in building products[164]. - The Company completed the acquisition of Masonite for a total purchase price of $3.2 billion, acquiring $979 million of intangible assets related to customer relationships[243]. - The Company incurred a loss on the sale of business amounting to $91 million and an impairment charge of $483 million due to a strategic review in 2024[317]. - Owens Corning entered into a definitive agreement to sell its global glass reinforcements business for approximately $436 million, aligning with its strategy to focus on residential and commercial building products in North America and Europe[334]. Cash Flow and Debt - As of December 31, 2024, the Company had cash and cash equivalents of $361 million and a $1.0 billion Senior Revolving Credit Facility[209]. - As of December 31, 2024, the company had cash and cash equivalents of $361 million, a decrease from $1.6 billion as of December 31, 2023[215]. - Net cash flow provided by operating activities increased by $173 million for the twelve months ended December 31, 2024, compared to the same period in 2023[216]. - Net cash flow used for investing activities increased by $3.0 billion for the twelve months ended December 31, 2024, primarily due to the Masonite acquisition[217]. - Net cash flow provided by financing activities increased by $1.2 billion for the twelve months ended December 31, 2024, driven by net proceeds from long-term debt related to the Masonite acquisition[218]. - As of December 31, 2024, the company had total debt of $5.1 billion, including a current portion of long-term debt of $38 million[222]. - Long-term debt increased to $5,116 million in 2024 from $2,615 million in 2023, marking a rise of 95.7%[323]. Equity and Dividends - Total equity at the end of 2024 was $5,120 million, a slight decrease from $5,185 million in 2023[325]. - The company declared dividends of $2.49 per share in 2024, up from $2.16 per share in 2023[325]. - The Board of Directors declared a quarterly dividend of $0.69 per common share, payable on April 10, 2025, to shareholders of record as of March 10, 2025[335]. Inventory and Expenses - Inventory levels rose to $1,587 million in 2024 from $1,198 million in 2023, an increase of 32.5%[323]. - Marketing and advertising expenses for the years ended December 31, 2024, 2023, and 2022 were $148 million, $134 million, and $125 million, respectively[348]. - Other expense, net increased by $259 million in 2024, primarily due to higher acquisition and strategic review-related costs[175]. Tax and Pension - The effective tax rate for 2024 was 30% on pre-tax income of $916 million, compared to 25% in 2023 on pre-tax income of $1,591 million[178][179]. - The discount rate for the United States pension plan was 5.65% as of December 31, 2024, compared to 5.00% at December 31, 2023[270]. - The expected return on plan assets is projected to be 6.00% for the measurement date of December 31, 2024, up from 5.75% for December 31, 2023[271]. - The company expects to contribute $20 million in cash to its pension plans during 2025, up from $7 million in 2024[227]. Miscellaneous - The Company applies a more-likely-than-not recognition threshold for all tax uncertainties, including claims by the Internal Revenue Service[244]. - The Company had no borrowings on its Senior Revolving Credit Facility or Receivables Securitization Facility as of December 31, 2024[284]. - The fair market value of senior notes would decrease by 12% for maturities in 2047 and 2048 with a one percentage point increase in interest rates[285].