Beleaguered building materials maker

Owens Corning

(OWC)

posted third-quarter earnings Tuesday that fell sharply due to $26 million in costs related to "asset impairments," severance and other employee benefits.

On Oct. 5, the company voluntarily filed for bankruptcy to allow it to continue operations while resolving outstanding asbestos litigation.

For the third-quarter, Owens Corning reported pretax operating income of $80 million, down from $183 million in the same period last year. Net income fell to $14 million, or 25 cents a share, from $89 million, or $1.53 a share, a year ago, amid softening demand, increased manufacturing costs and higher raw material and energy costs.

Net sales for the period were $1.28 billion, compared with $1.33 billion last year. The company said sales were basically flat when adjusted for the divestiture of businesses in the first half of 2000 that had accounted for $71 million of revenue in the third quarter of 1999.

Shares of Owens Corning were recently down 5%, or 6 cents, to $1.19 on the

New York Stock Exchange

.