NEW YORK (TheStreet) -- Shares of Owens Corning (OC) are down -4.62% to $39.39 after the company today lowered its 2014 full-year earnings outlook a a result of continued volume weakness in its roofing business.
In its first-quarter 2014 earnings release, the company stated that it expected to deliver $500 million in adjusted EBIT for full-year 2014 and noted that first-quarter volume weakness in its roofing business added risk to the company's financial outlook.
OC said that the weakness in roofing volumes experienced in the first quarter continued through April and May, and the company now estimates that roofing volumes for the first half of 2014 may be as much as 20% lower than first-half 2013 volumes.
The company expects to recover a portion of this volume shortfall in the second half of the year.
OC continues to see improvement in the year-over-year performance of both its insulation and composites businesses. Earnings growth in these two businesses is expected to more than offset the weaker financial performance in the roofing business year over year.
The company now expects to deliver full-year 2014 adjusted EBIT that will be greater than the prior year result of $416 million.
TheStreet Ratings team rates OWENS CORNING as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation: