For the quarter, the company reported net income of $55 million. This compares to a net loss of $2.359 billion for the third quarter of 2002. Contributing to the loss in the prior year were pre-tax charges to income for asbestos-related liabilities of $1.381 billion for Owens Corning and $975 million for Fibreboard, for a total charge of $2.356 billion.
Owens Corning reported income from operations of $104 million for the quarter, including $5 million of Chapter 11-related charges and a $1 million other charge as the result of a contractual post-closing adjustment to the selling price of the companys metal systems business. For the third quarter of 2002, the company reported a loss from operations of $2.342 billion, including $35 million of Chapter 11-related charges, an $11 million restructuring charge, other charges of $33 million, and the $2.356 billion charge for asbestos-related liabilities. All charges included in income from operations are pre- tax.
Owens Corning ended the quarter with a cash balance of $769 million. "We were very pleased with our operational performance for the quarter as we experienced solid volume increases versus the third quarter of 2002 in most of our businesses," said Dave Brown, Owens Corning's chief executive officer. "Our Company has significant momentum heading into the fourth quarter, but higher energy and raw material costs, as compared to last year, continue to be a challenge." "As we evaluate our operating results, excluding the costs of our Chapter 11 process, restructuring and other charges, we are pleased with our progress," he added.