UPDATE 3-Owens Corning Q1 tops Street, sees strong FY profit

* Q1 adj EPS $0.42 vs est $0.15

* Sees FY adj EPS of about $2.00 vs est $1.54

* Sees strong growth in roofing business

* Shares jump 14 pct
(Recasts; adds details from conference call and filing,
analyst comment; updates share movement)

By Fareha Khan

BANGALORE, April 28 (BestGrowthStock) – Building materials maker
Owens Corning (OC.N: ) posted quarterly results that handily beat
market estimates and forecast strong 2010 earnings, citing
growth at its roofing business.

Shares of the Toledo, Ohio-based company jumped 14 percent
to a year-high of $33.94. They later pared some gains and were
trading up 10 percent at $32.91 Wednesday afternoon on the New
York Stock Exchange.

The company said its roofing business, which makes and
sells residential roofing shingles and oxidized asphalt
materials used in residential and commercial construction, has
seen increased volumes as customers restock inventories from
levels that were below normal at the end of 2009.

“As demand from the residential and industrial markets
comes back, the company should be able to generate incremental
revenue without adding much to their cost structure,” said
Longbow Research analyst Garik Shmois, who has a “neutral”
rating on the stock.

For 2010, Owens Corning sees adjusted earnings of about
$2.00 per share, while analysts were expecting $1.54 a share,
according to Thomson Reuters I/B/E/S.

The company plans to increase production levels at its
composites segment, which makes and sells glass reinforcements
mainly for the industrial markets, as global industrial
activity picks up.

However, it continues to see pressure in new residential
construction-related demand through the remainder of the year.

“The timing and pace of recovery of the United States
housing market remains uncertain,” the company said in a
regulatory filing.

On Tuesday, rival Masco Corp (MAS.N: ) posted a narrower
quarterly loss, and said it sees an improvement in expenditures
on repair and remodel activity over last year. [ID:nSGE63P0T8]

For the first quarter, Owens Corning posted net income
attributable to the company of $48 million, or 38 cents a
share, compared with a net loss of $28 million, or 23 cents a
share, a year ago.

On an adjusted basis, the company earned 42 cents a share.

Revenue rose 18 percent to $1.27 billion, of which the
roofing and composites businesses accounted for about 42
percent and 33 percent, respectively.

Analysts were expecting the company to earn 15 cents a
share, before special items, on revenue of $1.03 billion.

Stock Market Today

(Reporting by Fareha Khan in Bangalore; Editing by Anne

UPDATE 3-Owens Corning Q1 tops Street, sees strong FY profit