Owens Corning sees "substantial" earnings growth in 2H18
Owens Corning continues to expect an environment consistent with consensus expectations for U.S. housing starts and global industrial production growth. Expects the price momentum generated in the first-half to drive substantial earnings growth in the second-half, resulting in a full-year adjusted EBIT outlook of $925M-$975M. The company estimates an effective tax rate of 26% to 28%, and a cash tax rate of 10% to 12% on adjusted pre-tax earnings, due to the company's U.S. tax net operating loss and foreign tax credit carryforwards. The company has improved its outlook for general corporate expenses to $135M-$140M in 2018. Capital additions in 2018 are expected to total approximately $500M. Interest expense is expected to be $125M-$130M. In 2018, the company expects to convert adjusted earnings into free cash flow at about 100%.