Owens Corning Reports Massive Jump in Earnings

Owens Corning reported its fourth-quarter and full-year earnings and revenue figures last week.

The firm, which manufactures spray foam insulation, roofing materials, masonry products and a wide variety of other goods, is recovering from a rough patch created by the collapse of the U.S. housing market. 

Overall, the company earned a net $933 million in 2010, which works out to $7.37 per diluted share. In the fourth quarter, Owens Corning brought in $29 million, or $0.23 per diluted share.

"Our 2010 financial performance was strong," said chairman and chief executive officer Mike Thaman. "Owens Corning's portfolio of market-leading businesses delivered robust profitability despite markets that continued to perform well below their potential."

"In building materials, our roofing business delivered 22-percent operating margins despite enduring a weak market," Thaman added.

Insulation actually hasn't been a standout performer for the company since 2008, delivering negative earnings in 2009 and 2010. However, with global real estate markets seeing some recovery in demand and consumer appetite for energy-efficient technologies like spray foam insulation growing daily, the company could experience a turnaround in this critical sector.

Much will depend on the U.S. housing industry, which was characterized by what the company called "broad end-market weakness" in 2010.