September 20, 2010 / 12:07 PM / in 7 years

UPDATE 1-Owens Corning says roofing demand slumps

* Says roofing shingles demand down 35 pct in Q3

* Can no longer meet higher end of 2010 adj EBIT view

Sept 20 (Reuters) - Building materials maker Owens Corning (OC.N) said it can no longer meet the higher end of its 2010 adjusted EBIT outlook as demand for roofing shingles has fallen steeply in the third quarter.

The company said U.S. market demand for roofing shingles will be about 10 percent lower for the full year as weakness seen in June and July continued into the third quarter.

“Much of this fall in demand has occurred in the third quarter where a reduction in customer inventories has contributed to a decline of approximately 35 percent in market demand,” the company said in a statement.

However, the Toledo, Ohio-based company said it remains comfortable with its prior expectations for roofing EBIT (earnings before interest and tax) margins to exceed 20 percent for the third quarter and the full year.

    The company said its two other major businesses -- insulation and composites -- are performing in line with its prior forecast.

    In August, Owens Corning said it expects adjusted EBIT in 2010 to be as much as $450 million, which equates to adjusted earnings of about $2.00 per share. [ID:nSGE6720NS]

    Owens Corning’s shares, which have fallen 26 percent in value in the last three months, closed at $24.76 Friday on the New York Stock Exchange. (Reporting by A.Ananthalakshmi in Bangalore)

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