Document oeRwEKonbyZbmOgoo7GZQX5pw

Otvens-Coming Fiberglas Corporation Second Qamer Financial Review* For il?e- Period Ended June 30,1994 f Owens CORNING ptAtNTlFja exhibit \Y\1-Q252I- PLAINTIFF'S' ;exHiBJTy."' WV-03592 Dear Shareholder: If lie are pleased to report that our company made food progress in improving its financial performance during the second quarter, FuU> diluted earnings per share increased 34 percent compared to the second quarter of 1993 -- die iGth consecutive qtiarrer in which out earnings improved over the same period in the prior year. Profit margins benefitted from the volume and price increases ure realized as busings picked up, andour costs were helped by the productivity inittaives we launched earlier this year. Those initiatives yielded an improvement of six percent in our operations. The earnings increase was achieved on a 13 per cent gain in sales compared to the second quarter of 1993. About 10 percent of the gain was generated by our existing operations and another three petetnt came from newly acquired businesses. The sales increase is gratifying and marks significant progress toward our goal o( $5 billion in annual sales by the year 20CK). We experienced strong sales growth during the quarter in our North American markets. The improvement was led by our insulation business which recorded a 30 potent increase. A 10 percent sales growth in composites in North America was 4 driven bv che automotive sector and supported by a pickup m activity across the broad range of our tndustnai markets. In Europe. insulation sales continued to exceed our manufacturing capacity in the region, recapi talize on this strong demand, we are now constructing a second production line at our insulation plant to Vise. Belgium. In addition, we secured; insulation capacity and the iCiuon* distribution business in the \) K. from PUkington pk We cart now satisfy our customer* with product manufactured by Oweni-Coming while improving profitability. In our composites business tn Europe, volumes held steady and piking stabilized late in me quarter, setting the stage for unproved financial remits. Key business achievements during the second quarter include* * requisition ofthe U.K.-based insulation ..mwiufaoueteg.and dtaribmion businesses of PiUangton pk to expand the company's saprtdty fos European markets. Acquisition of OC Industries. a privately held producer of pink extruded polystyrene foam products to enhance (he company's line of building products. Establishment of ajoint venture to manufac ture insulation products in Guangzhou. China. Dedication of the new )ojdi-venture manufac turing plant for glass-reinforced plastic pips in Mocftau. Germany. Looking ahead, we will continue to emphasize speed, simplicity and closure as we capitalize on the company's global leadership position in advanced gU&s and composite materials. Wj strive foe success through dedication to our guiding pnrvcipies of customer satisfaction, individual dignity and shareholder value. Sincerely, f& 9s Glen H. Miner Chairman aod Chief Executive Officer July 1$. 1994 CSM* OjMO 'OJ33ua >9H Q7BOM tMMo<ai-SeVireTmWtWoU Financial HishJiehrs income Statement 'U m,)if^AjosMters w<ptfi*r lAare Jota .......... ... *i*t &U icon from wigoifig dftwwi iiWinJ fcwn opsauc*M F4vi$jo Jftr mcwns u*e* Incwn* \t apsrcem c'faateii Quaw Ended Su Momas EftdwJ June 31). lu** JO. 1964 Wi ~ 1......... . 1964 tfc3 ---- 6 S62 X 96 t* i 49 S S* '$4 <1,999 $ ).30> ~3 ?4fl U6 ?J 26 <3 J9 3 26 33 S U ! JO 4^ AS, 4* FW She** N Income from OflgCufg orvrvlwv <kefere speerAi scm.) fSio*ryNo tnoonM j t.OS $ _ *^#miM * O** ftutto Puny diluted Nt Income *Saaj^^1n6469* 3 M'SliV. * Q.9B > 0.?9 _ 144 S 'M*6 I IMS on * 3.3* s < \.\<, i it SftejMfpUBtaAding (ifl rt.Mu4a3u P/WMry FuJt) diluted 44,0*6 J3.S2I 49469 43.-MJ *9464 *9.3X4 *9,769 39.266 Balance Sheet f* 'r.tibtr.i 4AJl+'ii Teat aMdi T<x4<W TonJ uncidUe* ^vuv Ouartei nd1 Joe30. 1fr* 1W) <3468 > 3J42 <1496 3 t.l!8 * 1776J $ ^$1) Flows /A r4.n*. * Ke* *3ah rte1*' Korn ?< ';j*b. rta Warn mv3 Mg$ iwh rtfr* from fa*nci$ Cauui wcntac FfviftJ, Ss* EMW /uk 30. 149* iW2 /uoc 30, 1MM iV(. t (6) < < HW 5 s 1U * l? * 161) s I44'i $ *> S 33 * 302 $ 30 *> 34 6 64 3 43 6 104 $ M N^ Wo' f (Vv >mch V'.WJ OwiM-Cent/*^ > fnv4U*r Xflt&D*! rtf***' ro.*A J &10-4/)j >33 ?)>** eonW<v w / %o *ve***" rf^r/v-wr .-epfr/ e/rtt* Of '/.ten :>*/ .rv