Mission Statement, Vision, & Core Values (2024) of Owens Corning (OC).

An Overview of Owens Corning (OC)

General Summary of Owens Corning (OC)

Founded in 1938, Owens Corning is a global leader in insulation, roofing, and fiberglass composites. The company has a rich history of innovation and sustainability, positioning itself as a key player in the building and construction industry. Owens Corning is renowned for its commitment to developing sustainable and energy-efficient solutions that cater to residential and commercial markets.

As of 2024, Owens Corning offers a diverse range of products, including:

• Insulation solutions for residential and commercial buildings.
• Roofing materials, including shingles and underlayment.
• Fiberglass composites used in various industrial applications.

In 2024, Owens Corning reported net sales of $8.135 billion for the first nine months, reflecting a year-over-year increase from $7.373 billion in 2023.

Company's Financial Performance in the Latest Financial Reports

Owens Corning showcased robust financial performance in its latest reporting period. For the third quarter of 2024, the company reported:

• Net sales of $3.046 billion compared to $2.479 billion in the same quarter of 2023, marking a 23% increase.
• Gross margin of $908 million, representing 30% of net sales, up from 29% in 2023.
• Earnings before interest and taxes (EBIT) at $509 million, up from $463 million year-over-year.
• Net earnings attributable to Owens Corning of $321 million, slightly down from $337 million in the prior year.

The company has seen significant growth in its main product lines, particularly in the Insulation and Roofing segments. For instance, the Insulation segment reported net sales of $946 million for the third quarter of 2024, a 4% increase from the previous year. The acquisition of Masonite International Corporation in May 2024 contributed approximately $573 million in revenues and $36 million in EBIT.

Introduction to Company as a Leader in the Industry

Owens Corning stands out as one of the leading companies in the building materials industry, recognized for its innovative products and sustainable practices. The company’s strategic focus on energy efficiency and building performance has solidified its reputation among customers and industry professionals alike. With a commitment to sustainability, Owens Corning continues to invest in R&D to create high-performance materials that meet the evolving needs of the market.

To explore more about how Owens Corning has achieved its position as a market leader, delve deeper into its mission, vision, and core values below.

Mission Statement of Owens Corning (OC)

Mission Statement of Owens Corning (OC)

Owens Corning's mission statement emphasizes its commitment to delivering high-quality products and services that enhance the performance of its customers and contribute to a sustainable future. The mission statement serves as a guiding principle for the company's strategic objectives and operational practices, ensuring alignment with its long-term goals.

Core Component 1: Quality Products

Owens Corning prioritizes the development and delivery of high-quality products across its segments, including Roofing, Insulation, Composites, and Doors. The company achieved net sales of $3,046 million in the third quarter of 2024, an increase of 22.9% compared to $2,479 million in the same quarter of 2023. This growth is driven by higher selling prices and an expanded product offering, particularly following the acquisition of Masonite, which contributed $884 million in sales from May 15, 2024, to September 30, 2024.

Core Component 2: Customer Focus

Owens Corning's mission underscores a strong focus on customer satisfaction by providing tailored solutions that meet specific industry needs. In 2024, the company reported a significant increase in adjusted earnings before interest and taxes (Adjusted EBIT) to $582 million, up from $518 million in the same period of the previous year. This reflects the company's commitment to understanding and addressing customer requirements effectively, leading to enhanced loyalty and repeat business.

Core Component 3: Sustainability

Owens Corning integrates sustainability into its mission by focusing on environmentally responsible practices. The company has made strides in reducing its Recordable Incident Rate (RIR) to 0.58 for the third quarter of 2024, compared to 0.66 in the same period of 2023. For the nine months ended September 30, 2024, the RIR was 0.47, down from 0.65. This improvement signifies Owens Corning's dedication to providing a safe work environment while minimizing its ecological footprint.

Owens Corning's mission statement is more than just words; it is a commitment to excellence, customer-centricity, and sustainability that drives the company forward in 2024 and beyond.

Vision Statement of Owens Corning (OC)

Vision Statement of Owens Corning (OC)

As of 2024, Owens Corning's vision statement focuses on leading the industry in sustainable building materials while enhancing the quality of life through innovation and technology. This vision is supported by various components that emphasize growth, sustainability, and leadership in the construction sector.

Owens Corning aims to be a leader in sustainability within the building materials sector. The company has committed to reducing its carbon footprint and increasing the use of sustainable materials in its products. As of 2024, Owens Corning has set a target to achieve a 50% reduction in greenhouse gas emissions by 2030, relative to its 2019 levels.

Innovation is a cornerstone of Owens Corning's vision. The company invests significantly in research and development to create advanced materials that enhance energy efficiency and durability. In 2024, Owens Corning allocated $150 million towards R&D initiatives aimed at developing new product lines that incorporate recycled materials and improve energy performance.

Owens Corning seeks to expand its market share in the building materials industry. The company reported a net sales increase of 8% in 2024, amounting to $8.135 billion year-to-date, driven by strong performance in its Insulation and Doors segments following the acquisition of Masonite International Corporation. This strategic acquisition is expected to enhance its product offerings and customer reach.

Owens Corning's vision includes a strong focus on enhancing the quality of life for its customers and communities. The company emphasizes the importance of safety in its operations, achieving a Recordable Incident Rate (RIR) of 0.58 for the third quarter of 2024, which is an improvement from 0.66 during the same period in 2023. This reflects the company’s commitment to creating a safe working environment and producing quality products that contribute to safer buildings.

With operations in over 30 countries, Owens Corning aims to leverage its global presence to foster community engagement and support local economies. The company is involved in various community initiatives, including educational programs focused on sustainable building practices. In 2024, Owens Corning invested approximately $2 million in community outreach programs aimed at promoting sustainability awareness.

Core Values of Owens Corning (OC)

Integrity

The core value of Integrity at Owens Corning underscores the importance of honesty and ethical behavior in all interactions. This value is fundamental in building trust with customers, employees, and stakeholders.

Owens Corning demonstrates its commitment to integrity through various compliance programs and ethical training initiatives. For instance, the company has implemented a comprehensive Code of Conduct that all employees are required to follow, ensuring adherence to ethical standards in business practices.

In 2024, Owens Corning maintained a record of zero significant compliance violations, reinforcing its dedication to integrity and ethical business practices.

Safety

Safety remains a top priority for Owens Corning, reflecting its commitment to protecting its employees and stakeholders. The company focuses on creating a safe working environment through rigorous safety protocols and training programs.

As of September 30, 2024, Owens Corning reported a Recordable Incident Rate (RIR) of 0.58, a decrease from 0.66 in the same period in 2023, indicating improvements in workplace safety measures.

The company invests significantly in safety training and resources, which include regular safety audits and employee engagement initiatives that promote a culture of safety across all operational levels.

Inclusiveness

Inclusiveness is a core value that drives Owens Corning to foster a diverse and equitable workplace. The company believes that diverse teams lead to better decision-making and innovation.

In 2024, Owens Corning launched several initiatives aimed at promoting diversity and inclusion, including partnerships with various organizations to enhance the recruitment of underrepresented groups. The company reported that women and minorities made up 45% of its workforce as of September 30, 2024.

Additionally, Owens Corning has established Employee Resource Groups (ERGs) to provide support and networking opportunities for diverse employee groups, enhancing the sense of belonging within the organization.

Innovation

Innovation is at the heart of Owens Corning’s business strategy, driving the development of advanced products and solutions that meet customer needs. The company prioritizes research and development (R&D) to maintain its competitive edge.

As of 2024, Owens Corning allocated approximately $100 million to R&D, focusing on sustainable building materials and energy-efficient solutions. This investment has led to the introduction of several innovative products, including a new line of insulation materials that significantly reduce energy consumption in residential buildings.

The company’s commitment to innovation is also reflected in its collaboration with universities and research institutions to advance material science and engineering.

Sustainability

Owens Corning emphasizes Sustainability in its operations, aiming to minimize environmental impact while delivering high-quality products. The company integrates sustainable practices across its supply chain and product lifecycle.

In 2024, Owens Corning achieved a reduction of 20% in greenhouse gas emissions compared to 2020 levels, aligning with its sustainability goals. The company has also committed to sourcing 50% of its raw materials from recycled or renewable sources by 2025.

Owens Corning’s sustainability initiatives include product innovations that support energy efficiency and waste reduction, demonstrating its leadership in the building materials industry.

Updated on 16 Nov 2024

Resources:

1. Owens Corning (OC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Owens Corning (OC)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View Owens Corning (OC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.