Owens Corning reported strong 4Q 2006 net income in its 1Q after emerging from Chapter 11. The building materials company saw solid results in its composite solutions business, which helped to offset weakness in the roofing and asphalt segment. However, Owens Corning said the "significant slow down in the US housing starts is expected to carry well into 2007", which will hit 1Q 2007 results, seasonally the company's weakest quarter. Owens Corning expects 2007 to be challenging, but business should improve if housing starts begin to stabilize. The Toledo, Ohio, company said it had 4Q 2006 net income of $7.7BN. A year earlier, when the company was in Chapter 11, net income was USD 338M. Adjusted income from operations fell to USD 143M ($149M). This includes charges of $152M in the latest quarter and a credit of $81M the year before. Owens Corning's sales fell 14% to USD 1.48 billion from USD 1.71 billion due to continued weakness in US housing starts and a lack of storm-related demand for roofing products. Owens Corning's board approved a share repurchase program of up to 5% of outstanding common stock, representing an investment of about USD 200 million.
