Q3 2024 Owens Corning Earnings Call

Thomson Reuters StreetEvents11-07

Participants Amber Wohlfarth; Vice President of Corporate Affairs & Investor Relations; OWENS CORNING Brian D. Chambers; President, CEO & Chair; OWENS CORNING Todd W. Fister; Executive VP & CFO; OWENS...

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Fister; Executive VP & CFO; OWENS...</p>\n\n<a href=\"https://finance.yahoo.com/news/q3-2024-owens-corning-earnings-073553235.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Q3 2024 Owens Corning Earnings Call</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nQ3 2024 Owens Corning Earnings Call\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-07 15:35 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/q3-2024-owens-corning-earnings-073553235.html><strong>Thomson Reuters StreetEvents</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Participants\nAmber Wohlfarth; Vice President of Corporate Affairs & Investor Relations; OWENS CORNING\nBrian D. Chambers; President, CEO & Chair; OWENS CORNING\nTodd W. Fister; Executive VP & CFO; OWENS...</p>\n\n<a href=\"https://finance.yahoo.com/news/q3-2024-owens-corning-earnings-073553235.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"GLW","symbol_name":"康宁","start_time":0,"source_url":"https://finance.yahoo.com/news/q3-2024-owens-corning-earnings-073553235.html","article_id":"2481923914","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2481923914","pubTimestamp":1730964953,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Amber Wohlfarth; Vice President of Corporate Affairs & Investor Relations; OWENS CORNING. Brian D. Chambers; President, CEO & Chair; OWENS CORNING. Susan Marie Maklari; Analyst; Goldman Sachs Group Inc. Good Morning, everyone, and welcome to Owens Corning Third Quarter 2024 earnings call. My name is Akia, and I'll be your operator today. After the prepared remarks, there will be an opportunity to ask questions. We'd like to join the key you can do so by pressing star followed by one on your telephone keypad. On one hand you over to Amber world-class Vice President, Corporate Affairs and Investor Relations. To begin, please go ahead.","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"GLW":"康宁","OC":"欧文斯科宁"},"translate_title":"2024年第三季度欧文斯科宁看涨期权收益","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"GLW":1,"OC":0.9},"content_text":"Participants\nAmber Wohlfarth; Vice President of Corporate Affairs & Investor Relations; OWENS CORNING\nBrian D. Chambers; President, CEO & Chair; OWENS CORNING\nTodd W. Fister; Executive VP & CFO; OWENS CORNING\nJohn Lovallo; Analyst; UBS Investment Bank\nStephen Kim; Analyst; Evercore ISI Institutional Equities\nPhilip H. Ng; Analyst; Jefferies LLC\nAnthony Pettinari; Analyst; Citi\nRichard Samuel Reid; Analyst; Wells Fargo Securities\nAlex Zukin; Analyst; Wolfe Research\nAdam Baumgarten; Analyst; Bernstein's Fine Catering\nMike Dahl; Analyst; RBC Capital Markets\nSusan Marie Maklari; Analyst; Goldman Sachs Group Inc\nGarik Shmois; Analyst; Loop Capital Markets\nMatthew Bouley; Analyst; Barclays\nKathryn Ingram Thompson; Analyst; Thompson Research Group\nPresentation\nOperator\n Good Morning, everyone, and welcome to Owens Corning Third Quarter 2024 earnings call. My name is Akia, and I'll be your operator today. After the prepared remarks, there will be an opportunity to ask questions. We'd like to join the key you can do so by pressing star followed by one on your telephone keypad. On one hand you over to Amber world-class Vice President, Corporate Affairs and Investor Relations. To begin, please go ahead.\nAmber Wohlfarth\n Good Morning, thank you for taking the time to join us for today's conference call and review of our business results for the third quarter 2024. Joining us today are Brian Chambers, Owens Corning's Chair and Chief Executive Officer, and Todd Foster, our Chief Financial Officer. Following our presentation this morning, we will open this one-hour call to your questions. In order to accommodate as many call participants as possible, please limit yourselves to one question only. Earlier this morning, we issued a news release and filed the 10-Q that detailed our financial results for the third quarter 2024. For the purposes of our discussion today, we have prepared presentation slides summarizing our performance and results and we'll refer to these slides. During this call. You can access the earnings press release Form 10-Q in the presentation slides at our website owenscorning.com refer to the Investors link under the Corporate section of our homepage. A transcript and recording of this call in the supporting slides will be available on our website for future reference. Please reference Slide 2, where we offer a couple of reminders. First, today's remarks will include forward looking statements that are subject to risks, uncertainties and other factors that could cause our actual results to differ materially. We undertake no obligation to update these statements beyond what is required under applicable securities laws. Please refer to the cautionary statements and risk factors identified in our SEC filings for more detail. Second, the presentation slides in today's remarks contain non-GAAP financial measures. Explanations and reconciliations of non-GAAP to GAAP measures may be found in our earnings press release and presentation available on the Investor section of our website, owenscorning.com. For those of you following along with our slide presentation will begin on slide 4 and now opening remarks from our Chair and CEO, Brian Chambers. Brian,\nBrian D. Chambers\n Thanks Amber,Good morning everyone and thank you for joining us today. During our call this morning, I will share an overview of our third quarter performance and reduce several strategic initiatives and investments we're making to sharpen our focus as a leader in residential and commercial building products while positioning the Company for future growth. Todd will provide further detail at our financial performance, and then I'll come back and discuss our near-term outlook. Owens Corning delivered another outstanding quarter with our team continuing to demonstrate best-in-class commercial and operational execution. Despite challenging near-term market conditions. Our ongoing ability to deliver such strong results is a direct reflection of the work we've done over the past few years to strengthen our market-leading positions, improve our operating efficiencies and increase the earnings power of the Company. In addition to our strong financial results, we also made progress on a number of key initiatives to further enhance our production, capacity and capability, as well as simplify our geographic footprint. I'll speak more about this shortly, but first, I'll begin as always with a critical component to our success. Safety, through the implementation of our (CFO)operating framework, our recordable incident rate was (0.5 b) in the third quarter. two thirds of our facilities have operated injury-free this year, more than half have done so for over year. As a reminder, I recently had a door segment has not been included in the our IRR calculation because we bring our safety first culture to this business. We continue to see improvements in the performance. We look forward to including doors in our safety reporting in early 2025. And looking at our financial performance in more detail, our results continued to demonstrate our structurally higher and more resilient earnings profile despite more challenging market conditions. In the third quarter, the Company delivered an adjusted EBIT margin of 19% and adjusted EBITDA margin of 25%, marking the 17th consecutive quarter of achieving mid-teens or better adjusted EBIT margins and 20% or better adjusted EBITDA margin. Sales and margin growth resulted in adjusted diluted earnings per share of $4.38 in the quarter. We also continued to demonstrate the cash generating capability of the Company, producing $558 million of free cash flow and given the strength of our balance sheet and focus on being disciplined capital allocators, we returned $252 million to shareholders through dividends and share repurchases. Our market-leading businesses continued to perform at a high level and generated results in line with our expectations. Roofing once again delivered very strong margins with our shingle volume outperforming the market as the overall asphalt shingle market was down slightly versus prior year. In Insulation, we delivered increased sales in the quarter through positive price realization and favorable product mix within our North American residential and technical insulation businesses. Work within our doors business continued to focus on integration efforts as we navigated through some choppy near term and markets. Results in its first full quarter as part of Owens Corning were in line with our outlook and in Composites segment performed well. Despite the macro environment remains challenging in the quarter, we also began commissioning our new glass non-wovens line in Fort Smith, Arkansas, giving us incremental capacity to grow this business. Our results this quarter continued to reflect the progress we've made in structuring our Company to generate higher more resilient earnings while also growing our top line over the past few years. Through the execution of our enterprise strategy and operating priorities, we have been reshaping the Company creating multiple paths to achieve 20% or better, adjust had EBITDA margins, mid-teen returns on invested capital and significant free cash flow generation through this process as we have maintained a disciplined capital allocation approach focused on products and applications where we can build market-leading positions. This has resulted in acquisitions that have expanded our offering of branded building products as well as investments drive organic growth. We have also capitalize on several business optimization opportunities to simplify our structure and geographic footprint that have improved our operating efficiencies and cost position. As a result of this disciplined approach to enhance our earnings power and focus Owens Corning as one building products leader in North America and Europe, we announced two key decisions this morning. Let me start with our announcement to simplify our geographic footprint by selling our building products business in China and Korea to a member of the businesses. Management team. The sale of assets includes six insulation manufacturing facilities in China as well as a Korean roofing manufacturing facility servicing demand in that region. Not included in this transaction, our glass reinforcements facilities in Asia Pacific and our manufacturing assets that service our North American and European markets, including our roofing coated wovens manufacturing facilities in India in our cellular glass insulation plant in China. Over the years, we've built a strong market presence and customer base with the business generating revenues of approximately 130 million in 2024 for the strategic decision to exit this business allows us to put more focus on strengthening our leadership position in North America and Europe, which includes additional investments in these markets. It's more increased fiberglass insulation capacity in the United States. Over the last few quarters, we've been evaluating options to invest into continued modernization of our flexible and cost-effective U.S. fiberglass insulation network to meet strong market demand for both our residential and commercial products. As a result of this evaluation, we are excited to announce the addition of a new production line within our existing (Kansas) City manufacturing facility. This capacity, which is expected to come online in 2027, will utilize our advanced process technology to produce both light and heavy density fiberglass product and an improved costs. In addition, the new line will give us the capability to rebalance our fiberglass production network to increase capacity of light density, residential insulation and across our other existing facilities. Position in this new lines in Kansas City enables us to grow alongside customers to meet market demand while leveraging our existing footprint and the knowledge of our manufacturing team in Kansas City. In addition to these two announcements, we continue to make good progress on our other two key strategic initiatives to sharpen our product and geographic focus. The integration of doors in the evaluation of our glass reinforcements business. The acquisition in addition of The Door segment to Owens Corning has strengthened our portfolio of highly valued branded building products that we continue to make progress in integrating doors with NOC. We remain excited about the future growth opportunities within this category in our ability to drive improved financial results as we leverage both company's best in class brands, extensive customer and channel knowledge, manufacturing capabilities and material science expertise. We continue to execute our integration playbook, finding cost synergies consistent with our original expectation of $125 million. While we explore new growth opportunities with customers utilizing our expanded product line and long-standing relationships, we have delivered sourcing synergies and a number of categories and streamlined operating processes, reducing duplicate spending and leveraging our scale. In terms of synergy capture, we are on track to realize these cost savings within the first two years and anticipate recognizing about half of the synergies with the new doors segment and the remainder across legacy IOC. Lastly, regarding the strategic review of our glass reinforcements business, we continue to make progress on the evaluation of options to both maximize the value to shareholders and determine the best growth path for the business. At this time. However, we have not yet concluded our review process as we explore alternatives. We are committed to be in a disciplined operator as we planned for the future. As such, while we explore options, we continue to focus on improving the overall cost position of the business through ongoing restructuring actions. Before I turn it over to Todd, I would like to congratulate my 25,000 Owens Corning colleagues for their role in our most recent recognitions, we have been named in the top 10 of 100 Best Corporate Citizens list for the seventh consecutive year and were ranked first within our industry category. This list recognizes outstanding environmental, social and governance performance and transparency among the largest publicly traded U.S. companies. As we make progress toward our mission is to build a more sustainable future through material innovation are people that truly make the difference. With that view of our performance and progress on strategic priorities. I will now turn it over to Todd to discuss our third quarter financial results in more detail. Todd,\nTodd W. Fister\n Thank you, Brian, and good morning, everyone. As Brian mentioned, we delivered another quarter of outstanding results. The performance in the third quarter reflects the structural improvements we've made to the enterprise and a consistent commercial and operational execution from our teams. We have multiple paths to sustain our structurally higher EBITDA margins, deliver strong cash generation continued to return cash to shareholders. I'd now like to turn to Slide 5 to discuss the quarter in more detail. In the third quarter, we continued to build on a strong first half to deliver top line and bottom line growth in the quarter for the enterprise, adjusted EBIT of $582 million and adjusted EBITDA of $766 million grew versus last year by 12% and 19%. Adjusted EBIT margin was 19% and above adjusted EBITDA margin was 25%. Part of the year over year growth can be attributed to the first full quarter of operating the Door segment after our acquisition of Masonite, with the remainder, primarily driven by ongoing excellent commercial execution in our legacy businesses. Organically, adjusted EBIT and adjusted EBITDA were up 5%. Adjusted earnings for the third quarter were $385 million or $4.38 per diluted share, compared with 380 million or $4.18 per diluted share in the same quarter prior year. For the quarter, adjusting items totaled approximately $73 million and are excluded from our adjusted EBIT primarily include 61 million of Masonite acquisition related costs. 19 million of gains on the sale of certain precious metals is what our ownership portfolio and change the production tooling needs and composites and 16 million of charges related to the ongoing strategic review of the glass reinforcements business. Turning to Slide 6. Our capital allocation strategy remains unchanged. We're focused on generating strong free cash flow, returning approximately 50% to investors over time and maintaining an investment grade balance sheet while executing on our business strategies to grow the Company. Operating cash flow was up slightly from prior year in the third quarter. Free cash flow for the quarter was $558 million compared to $581 million in the same quarter last year. The year-over-year decline was due to increased capital additions, which were $141 million in the quarter, up $31 million from prior year. We make the targeted investments. Brian mentioned, our return on capital was 15% for the 12 months ending September 30th, 2024, down from last year as we continue to see the impact of the acquisition. At quarter end, the company had liquidity of approximately $1.8 billion, consisting of 499 million of cash and $1.3 billion of availability on our bank debt facilities. We have 400 million of senior notes due in the fourth quarter. During the third quarter of 2024, we returned 252 million to shareholders through share repurchases and a cash dividend. Through the first nine months of the year, we returned $486 million to shareholders through share repurchases and dividends. At the end of the quarter, we had 6.9 million shares available for repurchase under our current authorization. Exiting Q3, our net debt to adjusted EBITDA was slightly below our targeted range of two to three times, inclusive of returning 252 million to shareholders in the quarter. Now turning to Slide 7, I'll provide additional details on our segment results. The roofing business had another quarter of shingle market outperformance as we continued to demonstrate the strength of our contractor engagement model. Overall revenue was $1.1 billion in line with prior year as positive price and favorable mix offset the impact of lower components volumes and the net impact from the exit of protective packaging in the quarter, we saw positive price realization on our August increase in demand for our shingles remains strong. The U.S. asphalt shingle market on a volume basis was down slightly in the quarter compared to the prior year. Coming into the quarter, we anticipated the market would be down mid to high single digits as we expected, our U.S. shingle volumes outperformed the market up slightly as demand for our shingles remained strong. Also as expected, overall segment volumes were impacted by lower roofing components volumes as distributors work through channel inventory of these products volume continued to be impacted by the strategic decision to exit our protective packaging business. Yes, we would anticipate Q4 will be the last quarter of impact from protective packaging. Ebit was 300 branches last year. The increase was primarily due to positive price and favorable mix offsetting the volume decline. All of this resulted in EBIT margin of 33% and EBITDA margin of 35%. Now please turn to slide 8 for a summary of our insulation business. In the third quarter, the Insulation business delivered growth and expanded margin versus prior year. We continue to execute well in a fairly stable North American market was Europe and Asia Pacific remain weak. Q3 revenues were $946 million, up 4% over prior year within installation. Revenue for our North American residential business grew in the quarter. Volume was up despite choppiness in housing starts. We also continued to realize positive price in North American residential and previously announced pricing actions. And technical and global revenue was similar to last year. Through strong commercial execution. Revenue for our fiberglass technical insulation products in North America has continued to grow. Demand remains challenged by the macro environment in Europe. Overall for insulation. Ebit in the third quarter was $183 million, up 33 million compared to prior year. Consistent with the first half. The EBIT grew in Q3 was primarily due to positive price realization and lower delivery cost. Input costs were fairly neutral for the quarter. For the quarter, insulation delivered an EBIT margin of 19% and EBITDA margin of 25%. Moving to slide 9, I will provide an overview of the doors business. Overall, the business performed in line with our outlook as we navigate a challenging market conditions for doors in North America and Europe. The integration is continuing to progress well. In the quarter, the business generated revenue of $573 million. This revenue includes the impact of a softer market in North America and Europe on volume and some pricing pressure. EBIT for the quarter was $36 million, including EUR22 million of impact from purchase accounting in order to share a clearer view of doors performance in the quarter and to exclude the impact of the purchase price accounting. Ebitda for the quarter was $89 million. Overall doors generated an EBIT margin of 6% and EBITDA margin of 16% in the third quarter. Slide 10 provides an overview of our Composites business. In the third quarter. The business continued to perform well in a challenging macro environment. Well end markets for glass reinforcements continue to be soft. We saw volume stabilization sequentially. Lower glass reinforcements pricing remained consistent with the impacts we saw in the first half. Revenue for the quarter was $534 million, down 6% compared to prior year. Ebit for the quarter was $61 million, down $19 million from prior year. Ebit was primarily impacted by lower glass reinforcements crisis. We also incurred some incremental costs in the quarter as we begin to start up our nonwovens line and Fort Smith Arkansas. We more than offset the impact of startup costs with positive manufacturing cost. Overall Composites delivered an 11% EBIT margin and 20% EBITDA margin for the quarter. Moving on to slide 11, I will discuss our full year 2024 outlook for key financial items. General corporate expenses are now expected to be approximately $250 million, down from our prior range of 255 to $265 million as a result of ongoing cost controls as we exit the year in line with our prior outlook to interest expense is estimated to range between $210 to $220 million, including the impact of additional interest expense on the higher debt from the acquisition and less interest income on our lower cash balance, our 2024 effective tax rate is expected to remain unchanged between 24% to 26% of adjusted pretax earnings. Next, capital additions are expected to be approximately EUR650 million, in line with depreciation and amortization. Now please turn to Slide 12. I'll turn the call back to Brian to further discuss our outlook.Brian,\nBrian D. Chambers\n Thank you, Todd. Our third quarter results demonstrated the impact of the strategic choices and structural improvements we have made to strengthen Owens Corning and build a company that continues to deliver strong free cash flow and sustainably higher margins. Despite a challenging market conditions, the near term market outlook for many of our residential and commercial end markets is likely to remain choppy as we close out 2024 and enter into the new year. However, as we move through 2025, we do expect to see demand trends in both repair and remodel and new construction to strengthen in North America as interest rates come down in investments in housing and nonresidential projects improved, we've also seen some signs of economic recovery in Europe that should continue to evolve and strengthen market conditions next year. Specific to the fourth quarter, we expect overall demand for our products to be impacted by challenging market conditions as well as normal ended the year seasonality. In addition, we will realize some operational impact for manufacturing disruptions from the recent hurricanes in each of our businesses. In North America building and construction markets. We anticipate nondiscretionary repair and remodeling activity to be solid while more discretionary repair remodeling activity is expected to remain soft. We also expect a decline in lagged housing starts result in lower demand from single-family new construction in the quarter. Outside North America, we anticipate ongoing macroeconomic trends and geopolitical tensions will continue to negatively impact demand for our products. Given this backdrop, we expect Q4 revenue growth for the company of around 20% with anticipated revenue from our legacy OC business to be slightly below prior year. For EBITDA, we expect to deliver another strong quarter mid teen margin for the enterprise with an EBITDA margin of approximately 20%. Now consistent with prior calls, I'll provide a more detailed business specific outlook for the fourth quarter. Starting with our roofing business, we anticipate our revenue to be down mid-single digits with lower compete unit volume, partially offset by positive price realization based on more normal seasonality in the fourth quarter and with the majority of demand from recent storm activity be in service next year, we expect our market shipments to be down low to mid single digits for the fourth quarter in 2024, with demand for our shingles relatively flat for components, we anticipate volumes in the quarter to be down versus prior year as we see attachment rates for our roofing components to shingles running at more normalized levels versus last year. In addition, we will realize the last quarter of impact from the exit of our protective packaging business. As a reminder, this business had approximately 100 million in revenue annually. We expect positive price from our previous announcements to partially offset the revenue impact of lower component science compared to Q4 of last year. We anticipate higher manufacturing costs as we invest in our assets to continue to meet the high level of demand for our products and absorbed the cost of maintenance and some operational disruptions. Overall for INR, and we anticipate an EBIT margin approaching 30% and EBITDA of approximately 31%. Moving on to our insulation business, we expect revenue to be down slightly versus prior year, with ongoing price realization largely offsetting lower volumes. In our North America residential insulation business, we anticipate revenue to be relatively flat. We expect realization from the June price increase to be offset by lower volumes in line with the near term declined in light housing starts and tactical and Global, we expect revenue to be down slightly versus prior year, driven primarily by lower volumes, which will be partially offset by positive price realization primarily in North America. Outside of North America, demand remains challenged by the soft market environment for the overall insulation business in the quarter, we expect to incur incremental costs in some of our facilities to impact from the recent hurricane activity also in the core be totally neutral with price costs remaining positive. Given all this, we expect to generate EBIT and EBITDA margin for installation similar to the fourth quarter lag last year. Turning to Doors, we expect to be impacted by continued market pressure and distributors. Tightly managing end-of-year inventories resulted in lower volumes with Q4 revenue down high single digits sequentially from Q3. We anticipate price cost to be positive in the quarter, primarily driven by an incremental catch-up of tariff recovery for input costs for EBITDA reflect lower volumes and associated deleverage to impact the quarter, partially offset by early synergies in line with what we have realized to date. Overall for doors, we anticipate low to mid teen EBITDA margin. Going forward, we will guide on EBITDA for this business to focus on the operational performance and take away the noise of purchase price accounting and in composites. For the fourth quarter, we anticipate overall revenues to be similar to last year as volume growth, primarily in our North American glass reinforcements business is offset by lower price and unfavorable mix consistent with what we have shared in prior quarters. Old contract pricing and spot pricing lower year over year. During the quarter. We expect the nonwovens business to continue to perform well with solid demand and pricing, even as we absorb some incremental startup costs with the commissioning of our new Fort Smith nonwoven side. Overall for the business, we expect favorable manufacturing costs from lower production downtime and productivity. For the fourth quarter, we expect mid to high single digit EBIT margin in composites and mid teen EBITDA margin. With that view of our businesses, I'll turn to a few enterprise items. As I shared at the start of the call, our team has demonstrated best-in-class execution each and every day to consistently deliver higher, more resilient earnings. It is this consistent performance, coupled with the strategic initiatives and investments we've made, which has accelerated our growth, strengthened our earnings power and positioned Owens Corning to outperform the market. We believe the strategic decisions to invest in our North American fiberglass network, along with the addition of our doors business, combined with the review of strategic alternatives for our glass reinforcements business and exit of our China building materials business are the latest examples of how we are using a disciplined approach to reshape and grow the company as we integrate Masonite and look at additional opportunities to invest organically and inorganically. We will continue to be disciplined operators, focusing on markets and product lines where we can build leading positions through our customer and channel knowledge, material science and innovation capabilities in manufacturing and process expertise, we have built an incredibly strong balance sheet, which we will continue to utilize as we invest to strengthen the long-term performance of the Company going forward, we remain committed to strong cash flow generation and a balanced capital allocation strategy, returning at least 50% of free cash flow to shareholders over time. In closing, I want to recognize the great work being done by our team to deliver for our stakeholders today and position us to grow in the future. We've built multiple paths to achieve 20% or more adjusted EBITDA margin, mid (teen) returns on invested capital and generate significant free cash flow. As we finished 2024, we are focused on executing our priorities, serving our customers and creating value for our shareholders. With that, we'd like to open the call up for questions.\nQuestion and Answer Session\nOperator\n (Operator Instructions) Thank you. Please press star followed by the number one. If you'd like to ask a question and ensure your devices (Omnitrope) time to speak. We kindly ask you limit yourself to one question only. John Lovallo,UBS.\nJohn Lovallo\n Hey guys, good morning. This is actually Spencer on for John and thank you for the question. And apologies if I missed this, but how much incremental capacity will the new installation mine in (Kansas) City be bringing online in 2027 and are you concerned about any certain competitors that are also bringing capacity online or is that North American resi market just simply wanting to tight right now. Thanks.\nTodd W. Fister\n Hey Spencer. This is Todd. Good morning. I'll take that one at. So when you look at the line in (Kansas) City, you could think of that as being an incremental 2% to 3% increase in capacity for for the fiberglass industry. What's great about that asset is really a couple of things for us. It's a very, very capital efficient asset that we're adding because we're using existing footprint and infrastructure that we have in our (Kansas) City facility. It also is a really attractive ongoing operating costs because again, we're able to use the fixed cost overhead of that facility with this new line. We've designed the new line to give us flexibility across our network flexibility to better serve the technical insulation market. That's been a market that we've really been focused on over a long period of time. And we've grown that business quite significantly just last few years, but over the last decade or so. But it also gives us flexibility to rebalance our network in different ways to serve the residential market. So when we look at that addition, as we like, it is a way support the ongoing growth of the Insulation business. But it also is part of our strategy to continue to focus on growth of technical insulation, growth of other attractive markets and give us a really nice cost structure of our network and our assets. That was the big rationale for Radian.\nOperator\n Stephen Kim,Evercore ISI.\nStephen Kim\n Yes. Thanks a lot, guys. Appreciate it, Tom. Just yes, just sort of follow up a little bit on installation. Just with respect to your Q-4 guide, you mentioned some hurricane aspects. I was wondering if you could quantify that. And then also with respect to the, um, to I guess, about the big news last night on in meat in the situation where you got a Republican sweep, I know the house is still up for grabs, but assuming you did get a Republican sweep, do you think there's risk to the higher energy code mandate and if that were to actually be reversed, I'm curious how that would affect your calculus around the (Kansas) City expansion.So we'll just we'll go with that. Thanks.\nTodd W. Fister\n Thanks Steve, and good morning. Appreciate both of those and I'll answer the hurricane first and then we could talk a bit about the hub changes. So overall for the hurricane, and we did see some limited impacts in some of our facilities from both the lean and Milton. We had some power interruptions at. We have had, you know, one of our plants be idled. We had some start-up costs associated with it. You could think of this cost is and it is being probably in the range of eight to $10 million or so in Q-4 for hurricane impact, really mostly associated with it with manufacturing cost in those facilities. There may be some positive demand associated with the hurricanes unit. Typically that lags a bit. So we wouldn't expect to see a lot of that in Q-4 of it certainly could see some of that the first half of the year. And as that demand comes through is we look at is we look at policy in housing. We all know housing has been under built in the US for a very long period of time. And one of the things we saw talked about a really on both sides was the need for more housing supply in part to address the inflation that we've seen in housing pricing over time. So as you know, fundamentally, we think that the macros are good for housing in in North America, fundamentally linked to the higher changes. You don't really none of that has made its way into any material volume and in markets today, Brian, I talked about this on previous calls, we always viewed it as an outcome that you would be impacted by what happened yesterday with the election. So as you know, when we think about capital investments, we're making long-term investments based on the fundamentals of the business in really we weren't contemplating volume from hired as we thought about what we would do it with (Kansas) City. That was not part of the calculus one way or the other is we thought about that asset that we were adding. Thank you for the question.\nOperator\n Philip H Ng,Jefferies.\nPhilip H. Ng\n Hey, guys. Congrats on another strong quarter on roofing. Can you size how many potential uplift from to their recent hurricanes and how do you see that kind of getting layered in perhaps 2025. The demand backdrop of roofing has obviously been a really strong last year. As you lap that, just curious your ability to grow to sustain current low 30% margins and perhaps even drive prices higher as we look at the next year.\nBrian D. Chambers\n Thanks, Phil, and good morning to you. Let me talk a little bit about the hurricane impact of the work. We're still assessing mean these are two, really devastating hurricanes. It impacts a lot of folks. So I think there's some infrastructure that really needs to be repaired. But as we look at some of the potential impacts of the gun beacons call date, they had done some analysis and we're estimating somewhere around three main squares of potential impact. I think at this point, we'd be right in line with that thought in terms of how that might play out for us and as Todd mentioned, I think given the broadness of flooding from the other damages that are going to need to be repaired as we go into next year, I think there's some incremental potential up side and in our other businesses well, but from a roofing standpoint, I think that's our initial estimate. As you know, the damage repair, it takes a long time. We knew when we're talking about hurricane. So we would expect this to be much more impacting demand and volumes as we move through 2025. So not a not a lot here early on in the fourth quarter that might be a little bit of inventory stocking, but we don't think that's going to be significant. We think the broader plays going to be into next year in terms of the overall setup for 2025, you've said it, I mean, the last few years, we've been in a very strong roofing market. I think we continue to see fundamental trends for R&R stay pretty strong this year in many regions. We think that's going to continue, especially if we start to see some more interest rates for existing homeowner turnover, that generally drives a little bit of R&R activity and new construction. Again, based on the expectations from lower interest rates, we think new construction is going to start to pick up as we move through 2025. So I think the setup in roofing for 2025 as we think we're going to start off with another pretty strong first half, given some the R&R fundamentals that we think will carry over some of the new construction trends we think will pickup and then some of the incremental storm demand. So for our ability to grow, I think we've been making significant investments, as we've talked about over the last number of calls around and investing to grow our laminate capacity. We continue to see that mix shift in roofing from strips delay laminates. That continues to be a positive mix impact on our results. And we've been investing in our existing footprint to expand that capacity. We are expecting to bring our Madonna new Madonna laminator of online and the first half sorry, about midyear next year. That's going to be an incremental capital squares of land capacity that's going to add to the existing network increases we've had. So I think we're facing what we think is going to be another positive backdrop for roofing demand going into 2025 and certainly the investments that we're making in capacity adds, we believe, are going to put us in a better position to continue to service our customers' growth as we go forward.\nOperator\n Anthony Pettinari ,Citi.\nAnthony Pettinari\n Hi,Good morning. I was wondering if you could talk about underlying donations of doors and how that's trended versus expectations since you closed the acquisition and if there's any kind of finer point you draw on interior versus exterior or U.S. versus rest of world and then assuming we do have a stronger R&R backdrop next year, Keith, can you just talk broadly about the prospects for unit volume improvement and maybe pricing to mention doors next year.\nTodd W. Fister\n Yes. Thanks, Effie. Certainly in the third quarter, I'd say the business performed well relative to these market conditions and in line with our outlook. But we are facing a tougher market conditions and a more challenging market conditions. Certainly here in the back half since we've closed down the acquisition in the business, as a reminder, is pretty evenly split between new construction and R&R activities. And we've continued to see some of the lagged housing starts coming down a little bit here over the last quarters and third quarter, we expect that to continue. So that's a that's going to create some demand challenges inside the new console function. And certainly the R&R activity has been down not just in doors but across a lot of other building material product categories here this year. And we think that's playing into to some of the more challenging market conditions that we're seeing. When we look at our business, I would say the volume declines we've seen we have been pretty consistent between interior and exterior. So we are not seeing a lot of big differences there. I think, again, fundamentally tied to we've seen this step down in both new construction and R&R going forward. And the US business. We've got a smaller business in Europe with those demand trends are challenges as well. So I think it's a near term backdrop that is more challenging. But back to our discussion in terms of a 2025 outlook, we do believe that as we see interest rates have come down with, we expect where we see housing turnover increased, where we see new construction starts improve. We do see a backdrop going into 2025 that's going to create a more favorable demand environment for doors overall. And then we are a category leader in this space. We value innovation, we value service, we value quality. We value the commercial partnerships that we're building. So we believe we're going to be it has to be set up. So to take advantage of that volume growth in terms of going forward. In the near term, we're continuing to execute our integration playbook. So as I talked about in my prepared comments, we're on track to deliver 100, 25 million of cost synergies in line with our expectation. And we're also leveraging our operation, our commercial playbook. So we're looking at potential growth opportunities with our customers as we go into 2025 across a broader platform or opportunity. And then we're also looking operationally in terms of additional cost synergies as well as looking at the manufacturing footprint for optimization opportunities. And that's a something that we've got a good track record of executing against. So we're going to prepare ourselves for the near-term market challenges to operate a very cost effective business. We're going to continue to focus on service and quality and innovation as differentiators. And then we're going to prepare ourselves as the market does improve, that we can take full advantage of that to grow our volumes as we go into 2025.\nOperator\n Sam Read,Wells Fargo.\nRichard Samuel Reid\n Awesome. Thanks so much, I actually wanted to piggyback off the last question on May ninth, but maybe drill down a bit more on pricing. When you talk about pricing get back to continue to aggregate between repair, remodel pricing and maybe what you're seeing on price in terms of what you're selling into the newbuild channel. Sounds like most of the weakness is on the repair, even on that. And then if we were to see discretionary repair remodel spend recover in 2025, kind of consistent with your expertise patients on, do you think that would have a corresponding impact, positive impact on pricing and late night. Thanks.\nTodd W. Fister\n Yes, station in terms of the pricing moves that we may, we talked about that my comments we did make some modest price moves relative to the market conditions, very surgical, very specific in certain areas and very modest. And I would say really did get us in line with some of the competitive pricing dynamics we're seeing in some markets. So we've made some modest moves there. We're still focused on value pricing and retaining the value that we have relative to our service, our quality and innovation in the market. But we did make some of those moves in. Correct, really broadly, I would say not a lot of differences between new construction, repair and remodeling. These remote broader market base moves that we felt we needed to make to stay competitive while maintaining our value premium in the market. So as we go forward into next year, certainly a better volume and environment and better demand environment creates the opportunity for improved pricing. And so we'll look at that as we go forward into next year, manage the business relative to that market demand and also relative to the value premium that we would expect to have in the marketplace.\nOperator\n Alex Zukin,Wolfe Research.\nAlex Zukin\n Hey, good morning. Thank you for taking my question. one follow-up on our missed shipments. They were better than you were anticipating. It looks like your volumes were kind of right in line with your guidance. Can you talk about what help the market performed better than you anticipated? Was that just less distributor destocking and you are looking for and then with the capacity limitations or planned downtime or what was it that you've kept your volumes from also being better than what you were anticipating leaving the quarter giving a better market. Just trying to understand your capacity and your ability to take advantage of some of the tailwinds you're talking about the prior to the data coming online next year.\nTodd W. Fister\n Yes. Thanks, In terms of our relationship, as I say, they were slightly stronger than than we were anticipating. Think a couple of factors played into that. one is we saw some incrementally better storm demand, particularly in Texas related to hurricane barrel. There's just been a lot of repair and activity around that. And that stayed stronger, frankly, through the quarter with the amount of damage that was done there. And then we saw some pockets in the Midwest and Northeast with just warm weather good, good seasonal opportunities to to put more roofs on. And so we saw that demand and particularly those regions kind of step up more than we would have expected. So overall, a good, a good quarter. Our shipments outperformed that a little bit of we continue to see strong demand for our products. And so I know some of the limitations, as you as you mentioned, there are really tied to our capacity limitations. That's why we're making these significant investments to increase the laminate capacity. We have very strong demand for our products. We've got a contractor network that we invest a lot to grow the businesses together with them, and that's created a great demand environment for us. And that's why we're making the investments. We are trying to continue to increase that capacity. I think we have increased our lives capacity year on year. We're going to produce more laminates this year than last working. Can you that as we go into 2025 with another big step up, as you said, with the Madonna laminator. So we feel like the demand outlook for our products is going to remain strong as we go into 2025. Adam Baumgarten, Dayton.\nAdam Baumgarten\n Hey, thanks. Good morning. Just on the sale of the China and Korea Building Materials businesses had any impact on earnings from that sale in a given the revenue and then I may have missed this, but when do you expect it to close.\nTodd W. Fister\n Thanks, Adam. Appreciate the question. I can give a little more color on the business itself that we could talk about closing time. And so what we shared was 130 million of revenue. It's six plants in China. It's one plant in Korea. The Chinese plants are really primarily China for China insulation products and then the Korean plant shingles that go into Korea and Japan. When you look at that business, it's a pretty low EBITDA margin business. So it's consistent with what we've been doing across the portfolio. To really focus on our higher value product lines that had a lot of value for customers and have structurally more attractive margins going forward. So this one had pretty low EBITDA margins, also pretty high capital intensity, just given the footprint that we've got, you know, especially in those Chinese insulation plants. When we think about timing to close it, this is going to be a couple of quarters to work through everything and get everything set up to actually execute the sale. So we would expect Q-2 timing for this to add to the complete.\nOperator\n (key themes Wave two).\n Thank you,you've given us the guidance for EBITDA margin for a motion on this fourth quarter on it's a little fuzzy. And what that compares to what would that compare to a high single-digit EBITDA margin Q-4 of last year, given where the structure of the businesses?\nTodd W. Fister\n Yes, Keith, as Brian had a tough with all the moving parts in terms of that, as I think that would continue to equate to kind of a mid-single digit EBIT margin guide from from our perspective in terms of how we are operating the business. So that's where there's a lot of noise inside the purchase accounting. We're getting that set, and that's why we're really wind. I tried to change in EBITDA margin guide. I think on a year-over-year comparison, that's also going to be something that is a relative data point as well. In terms of how we're operating the business post acquisition. But that's going to be in the guide that we continue to focus on as we go forward versus versus the EBIT side. Mike Dahl,RBC.\nMike Dahl\n Thanks. I want to focus on roofing. So continued strengthen margins. When you think about the margin in Q4 on you talked about the manufacturing cost. Can you quantify the manufacturing costs and then where you are on kind of input and delivery costs because it seems like you still had some sequential price realization and then the second part by can would be, as you look into 25, given the strength in demand and potentially some continued price offset by maybe some of these laminate investments. Can you give us a view on how you think about Roofing margins setting up into 25.\nTodd W. Fister\n Thanks Mike things like in terms of the fourth core margin got and we continue to operate the business very well and continue to generate very strong margins, certainly relative to history in terms of the performance that we're seeing, the work that's being done in the business. So I think great execution by the team is continuing to lead to very strong margins going forward. In terms of input cost step that we see, we're seeing really just modest inflation in a few days and some deflation and others. So I think we're seeing pretty stable input cost across the business is that and that's been a pretty constant theme here over the last realism we're seeing on the August increase that's creating positive price cost relative to those input materials and we'll look and see what kind of happens as we go into 2025. But we think that's going to stay stable for the fourth quarter here. In terms of the 2025 setup on margin performance, I think we've we've talked about what would would be a positive indicators to retain and maintain these kind of margin levels would be a continued strong market, which we expect to see in terms of setup for 2025. Continued strong demand for our products, which we continue to see going into 25, maintains a some kind of a price cost positive mix that we think given those demands setups well for us and then continuing to see good strong demand for our components business, which also is a key contributor in our margin performance. And again, I think we've seen some step back on year-over-year basis on some of the component volumes, but very normal attachment rates as we can track that. So we're seeing still good demand for our components, and we're seeing good demand from contractors selling the full system in package on the roof. So we think that's going to continue going into 2025. So I'd say the setup for next year is very well for us in terms of volume, in terms of our product demand in terms of price cost in terms of our components business. So we think we're set up for good first half. Susan Maklari Goldman Sachs.\nSusan Marie Maklari\n Thank you. Good morning, everyone. As you think about the changes that you're making to the portfolio with the additions and exiting some of the other businesses and regions, can you talk a bit about what that will mean for the cash flow dynamics of the business over time and with that Qwest, any comments on priorities for that capital allocation and how you're thinking about that balance between de-leveraging and the shareholder returns, especially with the buybacks that you did this quarter.\nTodd W. Fister\n Thank you. Appreciate the question. Let me let me talk a bit about the changes, the portfolio and then we could talk about implications on capital allocation. We're being very thoughtful as we think about the changes we're making, as I alluded to a moment ago about our our sale of the assets in China and Korea, REA, these were pretty a pretty low EBITDA margin, higher capital intensity businesses and we've talked before about glass reinforcements as being really a great business, but a business that requires capital going forward. And the doors acquisition big, a business that's structurally shifts our portfolio into them. So much lower capital intensity position than what we have in our installation or composites businesses. So we've got an eye to the future, really building a company that's a branded leader in building products in both North America in Europe. That also has an attractive cash flow profile in terms of the ongoing capital requirements of the business and also the significant free cash flow that we can we can generate off of that portfolio to both reinvest in the business and also return to shareholders. When we think about our priority right now for capital allocation, our priorities first and foremost, is to integrate Masonite very successfully and deliver returns to shareholders from the investment in the near term. Here, we also have a little bit of deleveraging in the fourth quarter. We've got $400 million of senior notes that are coming do that we will retire in Q-4, and we're building a little bit of cash on sheet to do that. Beyond that, as Brian discussed, we're making very strategic capital investments into our business into app into businesses that we want to grow and we think we can grow at very effectively with capital efficient and additions to capacity at whether it's Medina with the laminator, whether it's the Russellville planned for or are extruded polystyrene foam business, our Fort Smith, Arkansas nonwovens plan or the (Kansas) City addition that we discussed today. So we're focused on the targeted very strategic capital investments that we think about capital efficient, but also cost efficient to are you really continue to drive attractive cash flows for for the business. And then we've been we've been committed to our capital allocation strategy. We like the leverage of two to three times EBITDA. We're a little below that coming out of Q-3, even including returning and $200 million to shareholders through buybacks in the quarter. So we're happy with that two to three times range. As Brian said, we've got a very strong balance sheet and we've got a lot of flexibility on what we do in terms of capital allocation as we go forward. But we've returned a lot of cash to shareholders through dividends and repurchases over time, 58% over the last 12 months, including the largest acquisition we've done as a company. So we're committed to that. And we're committed very shareholder friendly and value-creating capital allocation as we go forward. And we think this new portfolio of market-leading businesses helps us achieve that.\nOperator\n Garik Shmois,Loop Capital.\nGarik Shmois\n Okay. Thank you, sir, if this is Ashish windings dropped earlier, but a composite some I hear you correctly, the pricing was down year on year really helping them weakened sequentially from. Is that why is that on spot primarily And then maybe just some thoughts ahead of the contract negotiations patient going into next year.\nTodd W. Fister\n So the question I'll take that one. So yes, I mean, we're down still year over year from a pricing standpoint. Sequentially, we've seen a good stability and composites, both Brian and I'm really proud about that business has executed both commercially to drive sequential stability, but also on the manufacturing side. They've done outstanding work this year on manufacturing productivity to really drive the kind of as a stable margins. You've seen the last the last few quarters, it is really early days on contract negotiations. So it's a little early to say, much about where where we're at that. We're in the midst of it, but the business is really prioritized. How do we add value to customers. How do we keep our costs really efficient. And we're trying to drive stable margins as we can in pretty challenging market environments as still in China, which certainly is impacting the global demand environment.\nOperator\n Matthew Bouley,Barclays.\nMatthew Bouley\n Good morning, everyone. Thank you for taking the question on. Wanted to ask on insulation and volumes. Just given your guiding the volumes to flip a little bit negative here exiting 2024. Wanted to get your thoughts on kind of how you're thinking about the first half of 25 gig and that exit rate. Obviously, these can be sort of high fixed cost manufacturing assets. So kind of any near term thoughts on the volume decrementals and if any, kind of need to right-size production if we do still have that volume headwind data early next year?\nTodd W. Fister\n Thanks, Matt. Appreciate the question. What we look at where we're at right now, we're dealing with really a little bit of an air pocket of weaker starts that we saw at from March through July as we saw interest rates a bit high, at least saw a little bit of a downturn and starts. That said, I mean, starts are still in a pretty good range for us. In engineered insulation business to be able to deliver really attractive margins and cash flows and return on capital and exactly this kind of market environment where we're around this 1.3 to 1.4 million starts arrange our view fundamentally is the housing market is still under Bill. We really have not approach the 1.5 million annual starts number since since the late two thousands. We also continued to see support from codes that when you go back over a long period of time, as we see the pounds per home, roughly 30% higher over a 10-year period and where we were a decade ago. So it's not it's not linear were year-in and year-out. We see 2.3% increases in volume from codes. But certainly our long term, it's a strong support for the volume dynamics in the industry. So we'll watch. We'll watch housing starts closely as we end the year that we're watching interest rates as we end the year. But we're confident we've engineered a business that can deliver a good margin stability as we go forward. And that's very intentional around the choices we've made with the cost structure and how we've positioned the business for success.\nOperator\n Kathryn Thompson,Thompson Research Group.\nKathryn Ingram Thompson\n Hi, thank you for taking my questions today on the customers in early in the Q&A just around pricing, indeed, glow segment taking. But if you step back and take a look at balancing value over volume and this certainly has been obviously an intense focus area into Lowe's signed on to look at your getting out of Asia for certain products and that continued push to near-shoring or reshoring and how does the bookings Corning approach the value over volume and how do you see that changing over the next three years Thank you.\nBrian D. Chambers\n Thanks, Kathryn. I think the approach of this kind of step back kind of level. We are investors of innovation. We invested in marketing tools, commercial tools, quality service, the things that bring value to our customers in the things that help them grow in the market and see. So we always start with the premise of how can we help our customers win and grow in the market through our product offering to our innovation to our commercial tools were commercial resources to our service, our quality, anything that can help the business and help them grow. So we invest to create value. Now when we say value over volume, I think that it's a trade-off that I'm I'm I don't really look to make we look to drive increased value. We have to be competitive in our pricing. We have to be competitive in our offering and to maintain our positions in the market. So I think we don't trade off value over volume. We invest to create more value that leads to additional volume. And I think that's our approach. So we are always going to be competitive in all of our product offerings to market conditions. But we are always going to expect that through that value proposition that we're creating, that we can see a value premium for our products in the market. And not only that we see a value premium, but our customers see the value premium as they take those products into the market so that's our overall approach. When we look at at insourcing or outsourcing and we but you're clearly saying we're always going to be mindful of imports in other areas that could impact the cost structure within our businesses. But we also have a philosophy of local manufacturing for local demand and local service. So that's something that is sharpening our focus on the geographic footprint that we've talked about we really are focused on executing our strategy to reshape the Company has a building products leader in North America and Europe, and we're going to invest in manufacturing asset and sourcing to suppliers that are local to the to our markets and local to our manufacturing facilities there to create the best service platform for our customers.\nOperator\n (Thank) continue to be a Q&A session, so I'll now pass you back to Brian D. Chambers for any final comments.\nBrian D. Chambers\n Well. Thanks, (Lydia). I'd like to thank everyone for making time to join us on today's call and for your ongoing interest in Owens Corning. And we look forward to speaking with you again on our Q-4 call. Thanks and have a safe day.\nOperator\n This completes our call and thank you for joining. 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