TOLEDO, Ohio, Nov 5, 2004 /PRNewswire-FirstCall via COMTEX/ -- Owens Corning (OWENQ, Trade) today reported financial results for the quarter ended September 30, 2004.

For the third quarter, the company posted net sales of $1.541 billion, an increase of 14 percent compared to net sales of $1.349 billion for the same period in the prior year. Net income for the quarter rose 71 percent, to $94 million, compared to net income of $55 million for the third quarter of 2003. Net income for 2004 included a $16 million pre-tax gain recorded for the reversal of accrued interest as the result of the settlement of certain guaranteed subsidiary debt.

Owens Corning reported income from operations of $153 million for the quarter, including a Chapter 11-related credit of $5 million and a credit for asbestos-related insurance recoveries of $3 million. For the third quarter of 2003, the company reported income from operations of $104 million, including $5 million of Chapter 11-related charges and a $1 million other charge as the result of a contractual post-closing adjustment to the selling price of the Company's metal systems business.

Owens Corning ended the quarter with a cash balance of $822 million.

"For the second quarter in a row, Owens Corning achieved record sales as we continued to see strong demand in all of our major markets," said Dave Brown, Owens Corning's chief executive officer. "With our results for the last two quarters, we are entering into the fourth quarter with momentum and we expect to achieve the aggressive goals we set for the company for the year."

Owens Corning is a world leader in building materials systems and composite systems. Founded in 1938, the company had sales of $5 billion in 2003. Additional information is available on Owens Corning's Web site at http://www.owenscorning.com or by calling the company's toll-free General Information line: 1-800-GETPINK.

On October 5, 2000, Owens Corning and 17 United States subsidiaries filed voluntary petitions for relief under Chapter 11 of the U. S. Bankruptcy Code in the U. S. Bankruptcy Court for the District of Delaware. The Debtors are currently operating their businesses as debtors-in-possession in accordance with provisions of the Bankruptcy Code. The Chapter 11 cases of the Debtors are being jointly administered under Case No. 00-3837 (JKF). The Chapter 11 cases do not include other U. S. subsidiaries of Owens Corning or any of its foreign subsidiaries. The Debtors filed for relief under Chapter 11 to address the growing demands on Owens Corning's cash flow resulting from the substantial costs of asbestos personal injury liability.

On October 24, 2003, the Debtors, together with the Official Committee of Asbestos Claimants and the Legal Representative for future asbestos personal injury claimants, filed an amended Joint Plan of Reorganization in the U. S. Bankruptcy Court for the District of Delaware. On June 7, 2004, Owens Corning announced that an agreement in principle had been reached with the Official Committee of Asbestos Claimants, the Legal Representative for the class of future asbestos claimants, and the official representatives of Owens Corning's pre-petition bondholders and trade creditors. As a result of the agreement in principle, Owens Corning has now gained support for the Plan from all of its major creditor groups with the exception of the holders of debt under its $1.8 billion pre-petition bank credit facility, who continue to oppose the Plan. It is expected that the Plan will be amended to reflect the terms of the agreement in principle. The Plan is subject to confirmation by the Bankruptcy Court.

The current Plan, as modified to reflect the agreement in principle, provides for payment of 38.5 percent of the face amount of all unsecured creditors' claims, in the form of new common stock and notes of the restructured company, and cash. However, the percentage recovery and the value of the payments ultimately made under the Plan to each class of creditors will depend upon a number of factors. Additional distributions from potential insurance and other third-party claims may also be paid to certain classes of creditors, but it is expected that all classes of pre-petition unsecured creditors will be impaired. Therefore, the Plan also provides that the existing common stock of Owens Corning will be cancelled, and that current shareholders will receive no distribution or other consideration in exchange for their shares. It is impossible to predict at this time the terms and provisions of any plan of reorganization that may ultimately be confirmed or the treatment of creditors thereunder.

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in these statements. Further information on factors that could affect the company's financial and other results is included in the company's Forms 10-Q and 10-K, filed with the Securities and Exchange Commission.

SOURCE Owens Corning

Dave Dimmer, Corporate Communications of Owens Corning,  
+1-419-248-8421  
/Company News On-Call:  http://www.prnewswire.com/comp/677350.html  

http://www.owenscorning.com  

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