* 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 (Reuters) - 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. (Reporting by Fareha Khan in Bangalore; Editing by Anne Pallivathuckal)