Owens Corning Delivers Net Sales of $2.6 Billion; Generates Net Earnings of $345 Million and Adjusted EBIT of $534 Million

TOLEDO, Ohio–(BUSINESS WIRE)–Owens Corning (NYSE: OC), a global building and construction materials leader, today reported second-quarter 2023 results.

  • Reported Net Sales of $2.6 Billion, Similar to Prior Year
  • Expanded Adjusted EBIT Margins to 21% and Adjusted EBITDA Margins to 26%
  • Delivered Diluted EPS of $3.78 and Adjusted Diluted EPS of $4.22
  • Generated Operating Cash Flow of $494 Million and Free Cash Flow of $372 Million
  • Returned $160 Million to Shareholders through Dividends and Share Repurchases

Owens Corning delivered another outstanding quarter highlighting the capability of our teams, the value of our product lines, and the earnings power of our company,” said Board Chair and Chief Executive Officer Brian Chambers. “Our second quarter results continued to demonstrate the progress we have made in elevating the performance of the enterprise to generate higher, more resilient earnings. As we move forward, we will remain focused on delivering strong financial results and positioning the company for long-term success.”

Enterprise Performance

($ in millions, except per share amounts)

Second-Quarter

Six Months

2023

2022

Change

2023

2022

Change

Net Sales

$2,563

$2,601

$(38)

(1%)

$4,894

$4,947

$(53)

(1%)

Net Earnings Attributable to OC

345

343

2

1%

728

647

81

13%

Adjusted EBIT

534

525

9

2%

895

942

(47)

(5%)

As a Percent of Net Sales

21%

20%

N/A

N/A

18%

19%

N/A

N/A

Adjusted EBITDA

664

656

8

1%

1,151

1,199

(48)

(4%)

As a Percent of Net Sales

26%

25%

N/A

N/A

24%

24%

N/A

N/A

Diluted EPS

3.78

3.49

0.29

8%

7.94

6.52

1.42

22%

Adjusted Diluted EPS

4.22

3.85

0.37

10%

6.98

6.77

0.21

3%

Operating Cash Flow

494

466

28

6%

330

624

(294)

(47%)

Free Cash Flow

372

361

11

3%

50

412

(362)

(88%)

Enterprise Strategy Highlights

  • In the second quarter, the safety performance resulted in a recordable incident rate (RIR) of 0.59.
  • Owens Corning continues to invest in accelerating new product and process innovation to support customers and generate additional growth. In the second quarter, 6 new or refreshed products were launched bringing the first-half total to 17 launches.
  • Owens Corning continues to be recognized as a leader in environmental, social, and governance matters and in May published its 17th annual Sustainability Report. Earlier this year, the company completed a major renewable electricity supply agreement, which is expected to come online in stages through 2024, contributing significantly to reducing carbon emissions. In combination with existing wind-driven virtual power purchase agreements (VPPAs) operating in Finland and Sweden, the new agreement means that 100 percent of the company’s European production sites and science and technology centers will be covered by contracts and VPPAs supplying renewable electricity.

Cash Returned to Shareholders

  • During the second quarter, the company returned $160 million to shareholders through dividends and share repurchases. The company paid a quarterly cash dividend of $47 million and repurchased 1.1 million shares of common stock for $113 million. As of the end of the quarter, 11.8 million shares were available for repurchase under the current authorization.

Our strong and consistent cash generation combined with our solid financial position provide us the flexibility to execute on our enterprise strategy, while remaining committed to maintaining our investment-grade balance sheet and returning approximately 50% of free cash flow to shareholders over time,” said Executive Vice President and Chief Financial Officer Ken Parks.

Other Notable Highlights

  • In May, Owens Corning was recognized for its workplace fairness and inclusion practices and policy by DiversityInc as one of its Top 50 companies. Participation in the Top 50 survey measures overall performance in six key areas of diversity and inclusion management: leadership accountability, talent programs, workforce practices, supplier diversity, philanthropy, and human capital diversity metrics.

Segment Performance

  • Composites net sales decreased 14% to $620 million in second-quarter 2023 compared with second-quarter 2022, primarily due to lower volumes and the expected net headwind from the impact of previously announced divestitures and acquisitions. EBIT decreased $67 million to $87 million while maintaining 14% EBIT margins and 21% EBITDA margins, on the impact of lower sales volumes and the resulting production downtime. Additionally, the net impact from the divestitures and acquisitions contributed to the year-over-year EBIT decline. Positive price realization and favorable delivery more than offset input cost inflation.
  • Insulation net sales decreased 3% to $905 million in second-quarter 2023 compared with second-quarter 2022, primarily due to lower volumes partially offset by positive price realization and favorable product and customer mix. EBIT increased $6 million to $163 million, expanding EBIT margins to 18% and EBITDA margins to 24%, on positive price realization and favorable customer and product mix, which more than offset lower volumes, input cost inflation, and higher manufacturing costs.
  • Roofing net sales increased 10% to $1.1 billion in second-quarter 2023 compared with second-quarter 2022, primarily due to higher volumes related to storm activity in the quarter and positive price realization. EBIT increased $80 million to $338 million, expanding EBIT margins to 30% and EBITDA margins to 32%, primarily due to positive price realization and higher volumes. Lower input costs, including delivery, more than offset higher manufacturing costs.

Third-Quarter 2023 Outlook

  • The key economic factors that impact the company’s businesses are residential repair and remodeling activity, U.S. housing starts, global commercial construction activity, and global industrial production.
  • Inflation continues to moderate while increasing interest rates and ongoing geopolitical tensions continue to result in slower global economic growth. While global economic growth is expected to be lower year-over-year, the company expects many of its end markets to be relatively stable in the near term.
  • For third-quarter 2023, the company expects overall performance to result in net sales similar to the comparable quarter in the prior year, while generating high-teen EBIT margins.

Current 2023 financial outlook is presented below:

General Corporate Expenses

$215 million to $225 million(1)

Interest Expense

$70 million to $80 million(2)

Effective Tax Rate on Adjusted Earnings

24% to 26%

Cash Tax Rate on Adjusted Earnings

26% to 28%

Capital Additions

Approximately $520 million

Depreciation and Amortization

$520 million to $530 million

The above outlook excludes the impact of any acquisitions or divestitures not yet completed.

(1) Previously $195 million to $205 million.

(2) Previously $95 million to $105 million.

Second-Quarter 2023 Conference Call and Presentation

Wednesday, July 26, 2023

9 a.m. Eastern Time

All Callers

  • Live dial-in telephone number: U.S. 1.833.470.1428; Canada 1.833.950.0062; and other international locations +1.404.975.4839.
  • Entry number: 387004 (Please dial in 10-15 minutes before conference call start time)
  • Live webcast: https://events.q4inc.com/attendee/303565889

Telephone and Webcast Replay

  • Telephone replay will be available one hour after the end of the call through August 2, 2023. In the U.S., call 1.866.813.9403. In Canada, call 1.226.828.7578. In other international locations, call +1.929.458.6194.
  • Conference replay number: 582192.
  • Webcast replay will be available for one year using the above link.

About Owens Corning

Owens Corning is a global building and construction materials leader committed to building a sustainable future through material innovation. Our three integrated businesses – Composites, Insulation, and Roofing – provide durable, sustainable, energy-efficient solutions that leverage our unique material science, manufacturing, and market knowledge to help our customers win and grow. We are global in scope, human in scale with approximately 19,000 employees in 31 countries dedicated to generating value for our customers and shareholders and making a difference in the communities where we work and live. Founded in 1938 and based in Toledo, Ohio, USA, Owens Corning posted 2022 sales of $9.8 billion. For more information, visit www.owenscorning.com.

Use of Non-GAAP Measures

Owens Corning uses non-GAAP measures in its earnings press release that are intended to supplement investors’ understanding of the company’s financial information. These non-GAAP measures include EBIT, adjusted EBIT, EBITDA, adjusted EBITDA, adjusted earnings, adjusted diluted earnings per share attributable to Owens Corning common stockholders (“adjusted EPS”), adjusted pre-tax earnings, and free cash flow. When used to report historical financial information, reconciliations of these non-GAAP measures to the corresponding GAAP measures are included in the financial tables of this press release. Specifically, see Table 2 for EBIT, adjusted EBIT, EBITDA, and adjusted EBITDA, Table 3 for adjusted earnings and adjusted EPS, and Table 8 for free cash flow.

For purposes of internal review of Owens Corning’s year-over-year operational performance, management excludes from net earnings attributable to Owens Corning certain items it believes are not representative of ongoing operations. The non-GAAP financial measures resulting from these adjustments (including adjusted EBIT, adjusted EBITDA, adjusted earnings, adjusted EPS, and adjusted pre-tax earnings) are used internally by Owens Corning for various purposes, including reporting results of operations to the Board of Directors, analysis of performance, and related employee compensation measures. Management believes that these adjustments result in a measure that provides a useful representation of its operational performance; however, the adjusted measures should not be considered in isolation or as a substitute for net earnings attributable to Owens Corning as prepared in accordance with GAAP.

Free cash flow is a non-GAAP liquidity measure used by investors, financial analysts and management to help evaluate the company’s ability to generate cash to pursue opportunities that enhance shareholder value. The company defines free cash flow as net cash flow provided by operating activities, less cash paid for property, plant and equipment. Free cash flow is not a measure of residual cash flow available for discretionary expenditures due to the company’s mandatory debt service requirements. Free cash flow is used internally by the company for various purposes, including reporting results of operations to the Board of Directors of the company and analysis of performance.

Management believes that these measures provide a useful representation of our operational performance and liquidity; however, the measures should not be considered in isolation or as a substitute for net cash flow provided by operating activities or net earnings attributable to Owens Corning as prepared in accordance with GAAP.

When the company provides forward-looking expectations for non-GAAP measures, the most comparable GAAP measures and a reconciliation between the non-GAAP expectations and the corresponding GAAP measures are generally not available without unreasonable effort due to the variability, complexity and limited visibility of the adjusting items that would be excluded from the non-GAAP measures in future periods. The variability in timing and amount of adjusting items could have significant and unpredictable effect on our future GAAP results.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are subject to risks, uncertainties and other factors and actual results may differ materially from any results projected in the statements. These risks, uncertainties and other factors include, without limitation: levels of residential and commercial or industrial construction activity; demand for our products; industry and economic conditions including, but not limited to, supply chain disruptions, recessionary conditions, inflationary pressures, interest rate and financial markets volatility, and the viability of banks and other financial institutions; availability and cost of energy and raw materials; levels of global industrial production; competitive and pricing factors; relationships with key customers and customer concentration in certain areas; issues related to acquisitions, divestitures and joint ventures or expansions; climate change, weather conditions and storm activity; legislation and related regulations or interpretations, in the United States or elsewhere; domestic and international economic and political conditions, policies or other governmental actions, as well as war and civil disturbance (such as Russia’s invasion of Ukraine); changes to tariff, trade or investment policies or laws; uninsured losses, including those from natural disasters, catastrophes, pandemics, theft or sabotage; environmental, product-related or other legal and regulatory liabilities, proceedings or actions; research and development activities and intellectual property protection; issues involving implementation and protection of information technology systems; foreign exchange and commodity price fluctuations; our level of indebtedness; our liquidity and the availability and cost of credit; our ability to achieve expected synergies, cost reductions and/or productivity improvements; the level of fixed costs required to run our business; levels of goodwill or other indefinite-lived intangible assets; price volatility in certain wind energy markets in the U.S.; loss of key employees and labor disputes or shortages; and defined benefit plan funding obligation; and factors detailed from time to time in the company’s Securities and Exchange Commission filings. The information in this news release speaks as of July 26, 2023, and is subject to change. The company does not undertake any duty to update or revise forward-looking statements except as required by federal securities laws. Any distribution of this news release after that date is not intended and should not be construed as updating or confirming such information.

Owens Corning Company News / Owens Corning Investor Relations News

 

Table 1

Owens Corning and Subsidiaries

Consolidated Statements of Earnings

(unaudited)

(in millions, except per share amounts)

 

 

Three Months Ended

June 30,

 

Six Months Ended

June 30,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

NET SALES

$

2,563

 

$

2,601

 

$

4,894

 

$

4,947

 

COST OF SALES

 

1,811

 

 

1,867

 

 

3,553

 

 

3,594

 

Gross margin

 

752

 

 

734

 

 

1,341

 

 

1,353

 

OPERATING EXPENSES

 

 

 

 

Marketing and administrative expenses

 

207

 

 

201

 

 

411

 

 

385

 

Science and technology expenses

 

28

 

 

24

 

 

56

 

 

47

 

Gain on sale of site

 

 

 

 

 

(189

)

 

 

Other expense (income), net

 

30

 

 

22

 

 

42

 

 

(6

)

Total operating expenses

 

265

 

 

247

 

 

320

 

 

426

 

OPERATING INCOME

 

487

 

 

487

 

 

1,021

 

 

927

 

Non-operating income

 

 

 

(2

)

 

 

 

(4

)

EARNINGS BEFORE INTEREST AND TAXES

 

487

 

 

489

 

 

1,021

 

 

931

 

Interest expense, net

 

23

 

 

26

 

 

45

 

 

54

 

EARNINGS BEFORE TAXES

 

464

 

 

463

 

 

976

 

 

877

 

Income tax expense

 

121

 

 

119

 

 

251

 

 

226

 

Equity in net earnings (loss) of affiliates

 

1

 

 

(1

)

 

1

 

 

(1

)

NET EARNINGS

 

344

 

 

343

 

 

726

 

 

650

 

Net (loss) earnings attributable to non-redeemable and redeemable noncontrolling interests

 

(1

)

 

 

 

(2

)

 

3

 

NET EARNINGS ATTRIBUTABLE TO OWENS CORNING

$

345

 

$

343

 

$

728

 

$

647

 

EARNINGS PER COMMON SHARE ATTRIBUTABLE TO OWENS CORNING COMMON STOCKHOLDERS

 

 

 

 

Basic

$

3.81

 

$

3.51

 

$

8.01

 

$

6.56

 

Diluted

$

3.78

 

$

3.49

 

$

7.94

 

$

6.52

 

WEIGHTED AVERAGE COMMON SHARES

 

 

 

 

Basic

 

90.5

 

 

97.6

 

 

90.9

 

 

98.6

 

Diluted

 

91.3

 

 

98.4

 

 

91.7

 

 

99.3

 

 

Table 2

Owens Corning and Subsidiaries

EBIT Reconciliation Schedules

(unaudited)

 

Adjusting income (expense) items to EBIT are shown in the table below (in millions):

 

 

Three Months Ended

June 30,

 

Six Months Ended

June 30,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Restructuring costs

$

(47

)

$

(11

)

$

(65

)

$

(17

)

Gain on sale of Shanghai, China facility

 

 

 

 

 

 

 

27

 

Gains on sale of certain precious metals

 

 

 

7

 

 

2

 

 

11

 

Acquisition-related costs

 

 

 

(3

)

 

 

 

(3

)

Impairment loss on Chambery, France assets held for sale

 

 

 

(29

)

 

 

 

(29

)

Gain on sale of Santa Clara, California site

 

 

 

 

 

189

 

 

 

Total adjusting items

$

(47

)

$

(36

)

$

126

 

$

(11

)

The reconciliation from Net earnings attributable to Owens Corning to EBIT and Adjusted EBIT, and the reconciliation from EBIT to EBITDA and adjusted EBITDA are shown in the table below (in millions):

 

 

Three Months Ended

June 30,

 

Six Months Ended

June 30,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

NET EARNINGS ATTRIBUTABLE TO OWENS CORNING

$

345

 

$

343

 

$

728

 

$

647

 

Net (loss) earnings attributable to non-redeemable and redeemable noncontrolling interests

 

(1

)

 

 

 

(2

)

 

3

 

NET EARNINGS

 

344

 

 

343

 

 

726

 

 

650

 

Equity in net earnings (loss) of affiliates

 

1

 

 

(1

)

 

1

 

 

(1

)

Income tax expense

 

121

 

 

119

 

 

251

 

 

226

 

EARNINGS BEFORE TAXES

 

464

 

 

463

 

 

976

 

 

877

 

Interest expense, net

 

23

 

 

26

 

 

45

 

 

54

 

EARNINGS BEFORE INTEREST AND TAXES

 

487

 

 

489

 

 

1,021

 

 

931

 

Less: Adjusting items from above

 

(47

)

 

(36

)

 

126

 

 

(11

)

ADJUSTED EBIT

$

534

 

$

525

 

$

895

 

$

942

 

Net sales

$

2,563

 

$

2,601

 

$

4,894

 

$

4,947

 

ADJUSTED EBIT as a % of Net sales

 

21

%

 

20

%

 

18

%

 

19

%

 

 

 

 

 

EARNINGS BEFORE INTEREST AND TAXES

$

487

 

$

489

 

$

1,021

 

$

931

 

Depreciation and amortization

 

159

 

 

138

 

 

286

 

 

270

 

EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION

 

646

 

 

627

 

 

1,307

 

 

1,201

 

Less: Adjusting items from above

 

(47

)

 

(36

)

 

126

 

 

(11

)

Accelerated depreciation and amortization included in restructuring

 

(29

)

 

(7

)

 

(30

)

 

(13

)

ADJUSTED EBITDA

$

664

 

$

656

 

$

1,151

 

$

1,199

 

Net sales

$

2,563

 

$

2,601

 

$

4,894

 

$

4,947

 

ADJUSTED EBITDA as a % of Net sales

 

26

%

 

25

%

 

24

%

 

24

%

 

Table 3

Owens Corning and Subsidiaries

EPS Reconciliation Schedules

(unaudited)

(in millions, except per share data)

 

A reconciliation from Net earnings attributable to Owens Corning to adjusted earnings and a reconciliation from diluted earnings per share to adjusted diluted earnings per share are shown in the tables below:

 

 

Three Months Ended

June 30,

 

Six Months Ended

June 30,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

RECONCILIATION TO ADJUSTED EARNINGS

 

 

 

 

NET EARNINGS ATTRIBUTABLE TO OWENS CORNING

$

345

 

$

343

 

$

728

 

$

647

Adjustment to remove adjusting items (a)

 

47

 

 

36

 

 

(126

)

 

11

 

Adjustment to remove tax expense (benefit) on adjusting items (b)

 

(11

)

 

(2

)

 

35

 

 

4

 

Adjustment to tax expense to reflect pro forma tax rate (c)

 

4

 

 

2

 

 

3

 

 

10

 

ADJUSTED EARNINGS

$

385

 

$

379

 

$

640

 

$

672

 

 

 

 

 

 

RECONCILIATION TO ADJUSTED DILUTED EARNINGS PER SHARE ATTRIBUTABLE TO OWENS CORNING COMMON STOCKHOLDERS

 

 

 

 

DILUTED EARNINGS PER COMMON SHARE ATTRIBUTABLE TO OWENS CORNING COMMON STOCKHOLDERS

$

3.78

 

$

3.49

 

$

7.94

 

$

6.52

 

Adjustment to remove adjusting items (a)

 

0.51

 

 

0.37

 

 

(1.37

)

 

0.11

 

Adjustment to remove tax expense on adjusting items (b)

 

(0.12

)

 

(0.02

)

 

0.38

 

 

0.04

 

Adjustment to tax expense to reflect pro forma tax rate (c)

 

0.05

 

 

0.01

 

 

0.03

 

 

0.10

 

ADJUSTED DILUTED EARNINGS PER SHARE ATTRIBUTABLE TO OWENS CORNING COMMON STOCKHOLDERS

$

4.22

 

$

3.85

 

$

6.98

 

$

6.77

 

 

 

 

 

 

RECONCILIATION TO DILUTED SHARES OUTSTANDING

 

 

 

 

Weighted-average number of shares outstanding used for basic earnings per share

 

90.5

 

 

97.6

 

 

90.9

 

 

98.6

 

Non-vested restricted stock units and performance share units

 

0.8

 

 

0.8

 

 

0.8

 

 

0.7

 

Weighted-average number of shares outstanding and common equivalent shares used for diluted earnings per share

 

91.3

 

 

98.4

 

 

91.7

 

 

99.3

 

(a)

Please refer to Table 2 “EBIT Reconciliation Schedules” for additional information on adjusting items.

(b)

The tax impact of adjusting items is based on our expected tax accounting treatment and rate for the jurisdiction of each adjusting item.

(c)

To compute adjusted earnings, we apply a full year pro forma effective tax rate to each quarter presented. For 2023, we have used a full year pro forma effective tax rate of 25%, which is the mid-point of our 2023 effective tax rate guidance of 24% to 26%. For comparability, in 2022, we have used an effective tax rate of 24%, which was our 2022 effective tax rate, excluding the adjusting items referenced in (a) and (b).

 

 

Table 4

Owens Corning and Subsidiaries

Consolidated Balance Sheets

(unaudited)

(in millions, except per share data)

 

ASSETS

June 30,
2023

December 31,
2022

CURRENT ASSETS

 

 

Cash and cash equivalents

$

968

 

$

1,099

 

Receivables, less allowance of $13 at June 30, 2023 and $11 at December 31, 2022

 

1,413

 

 

961

 

Inventories

 

1,288

 

 

1,334

 

Assets held for sale

 

 

 

45

 

Other current assets

 

122

 

 

117

 

Total current assets

 

3,791

 

 

3,556

 

Property, plant and equipment, net

 

3,723

 

 

3,729

 

Operating lease right-of-use assets

 

224

 

 

204

 

Goodwill

 

1,387

 

 

1,383

 

Intangible assets

 

1,565

 

 

1,602

 

Deferred income taxes

 

20

 

 

16

 

Other non-current assets

 

291

 

 

262

 

TOTAL ASSETS

$

11,001

 

$

10,752

 

LIABILITIES AND EQUITY

 

 

CURRENT LIABILITIES

 

 

Accounts payable

$

1,201

 

$

1,345

 

Current operating lease liabilities

 

59

 

 

52

 

Other current liabilities

 

572

 

 

707

 

Total current liabilities

 

1,832

 

 

2,104

 

Long-term debt, net of current portion

 

3,004

 

 

2,992

 

Pension plan liability

 

76

 

 

78

 

Other employee benefits liability

 

116

 

 

118

 

Non-current operating lease liabilities

 

165

 

 

152

 

Deferred income taxes

 

438

 

 

388

 

Other liabilities

 

311

 

 

299

 

Total liabilities

 

5,942

 

 

6,131

 

Redeemable noncontrolling interest

 

25

 

 

25

 

OWENS CORNING STOCKHOLDERS’ EQUITY

 

 

Preferred stock, par value $0.01 per share (a)

 

 

 

 

Common stock, par value $0.01 per share (b)

 

1

 

 

1

 

Additional paid in capital

 

4,143

 

 

4,139

 

Accumulated earnings

 

4,427

 

 

3,794

 

Accumulated other comprehensive deficit

 

(637

)

 

(681

)

Cost of common stock in treasury (c)

 

(2,920

)

 

(2,678

)

Total Owens Corning stockholders’ equity

 

5,014

 

 

4,575

 

Noncontrolling interests

 

20

 

 

21

 

Total equity

 

5,034

 

 

4,596

 

TOTAL LIABILITIES AND EQUITY

$

11,001

 

$

10,752

 

(a)

10 shares authorized; none issued or outstanding at June 30, 2023, and December 31, 2022

(b)

400 shares authorized; 135.5 issued and 89.8 outstanding at June 30, 2023; 135.5 issued and 91.9 outstanding at December 31, 2022

(c)

45.7 shares at June 30, 2023, and 43.6 shares at December 31, 2022

 

Table 5

Owens Corning and Subsidiaries

Consolidated Statements of Cash Flows

(unaudited)

(in millions)

 

 

Six Months Ended

June 30,

 

 

2023

 

 

 

2022

 

NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES

 

 

Net earnings

$

726

 

$

650

 

Adjustments to reconcile net earnings to cash provided by operating activities:

 

 

Depreciation and amortization

 

286

 

 

270

 

Deferred income taxes

 

43

 

 

16

 

Provision for pension and other employee benefits liabilities

 

3

 

 

1

 

Stock-based compensation expense

 

27

 

 

25

 

Gains on sale of certain precious metals

 

(2

)

 

(11

)

Gain on sale of site

 

(189

)

 

 

Other adjustments to reconcile net earnings to cash provided by operating activities

 

1

 

 

22

 

Changes in operating assets and liabilities

 

(559

)

 

(330

)

Pension fund contribution

 

(3

)

 

(2

)

Payments for other employee benefits liabilities

 

(6

)

 

(5

)

Other

 

3

 

 

(12

)

Net cash flow provided by operating activities

 

330

 

 

624

 

NET CASH FLOW USED FOR INVESTING ACTIVITIES

 

 

Cash paid for property, plant, and equipment

 

(280

)

 

(212

)

Proceeds from the sale of assets or affiliates

 

189

 

 

27

 

Investment in subsidiaries and affiliates, net of cash acquired

 

 

 

(173

)

Derivative settlements

 

 

 

20

 

Other

 

(11

)

 

(2

)

Net cash flow used for investing activities

 

(102

)

 

(340

)

NET CASH FLOW USED FOR FINANCING ACTIVITIES

 

 

Purchases of noncontrolling interest

 

 

 

(9

)

Net decrease in short-term debt

 

 

 

(5

)

Dividends paid

 

(95

)

 

(70

)

Purchases of treasury stock

 

(275

)

 

(330

)

Finance lease payments

 

(16

)

 

(15

)

Other

 

1

 

 

 

Net cash flow used for financing activities

 

(385

)

 

(429

)

Effect of exchange rate changes on cash

 

27

 

 

(4

)

Net decrease in cash, cash equivalents, and restricted cash

 

(130

)

 

(149

)

Cash, cash equivalents and restricted cash at beginning of period

 

1,107

 

 

966

 

CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD

$

977

 

$

817

 

Contacts

Media Inquiries:
Todd Romain

419.248.7826

Investor Inquiries:
Amber Wohlfarth

419.248.5639

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