Owens Corning has reported financial results for the fourth quarter ended December 31, 2002, as well as results for the full year 2002.
For the fourth quarter of 2002, the company had net sales of $1.174 billion, compared to net sales of $1.165 billion for the same period in the prior year. Owens Corning reported a loss from operations of $44 million for the quarter, including charges of $113 million for restructuring and other charges and $11 million of Chapter 11-related charges. For the fourth quarter of 2001, the company reported $13 million in income from operations, including charges of $46 million for restructuring and other charges, $27 million of Chapter 11-related charges and $2 million of income from asbestos-related insurance recoveries. For the quarter, the company had a net loss of $39 million, as compared to a net loss of $7 million for the fourth quarter of 2001.
Owens Corning ended 2002 with a cash balance of $875 million compared to $764 million in 2001.
For the full year 2002, the company had net sales of $4.872 billion, compared to $4.762 billion for the full year 2001. Owens Corning reported a loss from operations of $2.313 billion, including charges of $2.356 billion for provision for asbestos-related liabilities, $166 million for restructuring and other charges, and $96 million of Chapter 11-related charges, partially offset by $5 million of income from asbestos-related insurance recoveries. For the year, the company had a net loss of $2.809 billion. The net loss for 2002 also reflects a non-cash charge of $491 million ($441 million net of tax) as the result of the adoption of Statement of Financial Accounting Standards No. 142, relating to the accounting for goodwill and other intangibles.
For 2001, the company reported $116 million of income from operations and net income of $39 million. Income from operations for 2001 reflected charges of $140 million for restructuring and other charges, $87 million of Chapter 11-related charges and $7 million of income from asbestos-related insurance recoveries.
“”Overall, we are pleased with the financial results of our on-going business operations for 2002, which exceeded our operating plan for the year,”” said David Brown, Owens Corning’s chief executive officer. “”Unfortunately, those results tend to be obscured by the charges that we recorded during the year. When we resolve our asbestos liabilities and emerge from Chapter 11, our reported results should once again more clearly reflect the operational results of our business,”” continued Brown.
The total asbestos liability of Owens Corning and of its Fibreboard subsidiary remains subject to review and negotiations in the company’s Chapter 11 proceedings. The company will continue to review the asbestos reserves for Owens Corning and Fibreboard on an ongoing basis and make such adjustments as may be appropriate.
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