Owens Corning, which makes construction and manufacturing materials, said Wednesday that its net income plunged from a year earlier when it enjoyed a benefit from an accounting change.
The company's net earnings fell to $78 million, or 62 cents per share, from $939 million, or $7.33 per share last year. Last year's quarterly results included the one-time reversal of an $858 million allowance for taxes, Owens Corning said.
But the company said its adjusted earnings amounted to 61 cents per share, up from 57 cents per share a year earlier as its prices rose and demand for roofing rose, driven by storm activity.
Analysts on average expected adjusted net income of 58 cents per share, according to FactSet.
Revenue rose 5 percent to $1.45 billion from $1.38 billion last year. That beat analysts' average forecast for $1.39 billion.
Results in the company's building materials segment grew, helped by higher demand for roofing material due to storms. Overall, however, the building materials segment has been hampered by the weak housing market, which has led to a drop in new construction.
The company said it expects its full-year adjusted earnings to rise 25 percent in its composites division in 2011 compared with 2010, down from an earlier forecast for a 40 percent increase. The change resulted from weakness in the Chinese wind energy market and higher-than-expected inflation, the company said. It expects a 20 percent increase in adjusted earnings in its roofing division.
In all, Owens Corning expects its adjusted earnings per share to rise 40 percent from 2010, CEO Mike Thaman said in Wednesday's announcement. The company didn't offer more detail in its outlook.
Owens Corning shares fell $3.26, or 9.6 percent, to $30.85 by midday. The stock has traded between $23.05 and $38.94 during the past 52 weeks.