Losses narrow at LP
Louisiana-Pacific Corp., one of the industry’s leading suppliers of oriented strand board and other building materials, announced net sales of $361.5 million for its first fiscal quarter of 2012, compared with $331.7 million during the same quarter a year ago.
Net loss for the first quarter, which ended March 31, was $11.3 million. This compares with a net loss of $22.9 million in the first fiscal quarter of 2011.
All of our North American segments outperformed the same quarter last year,” said CEO Curt Stevens. “For the first time in many years, the housing news has been positive and this was reflected in our results. Of particular note was the performance of our siding segment where operating profit improved by more than 30% compared with the same quarter last year and more than doubled compared with last quarter.”
LP's OSB segment currently operates seven facilities and has indefinitely curtailed three other facilities due to market conditions. The OSB segment reported net sales for the first quarter of 2012 of $149 million, an increase from $132 million of net sales in the first quarter of 2011. For the first quarter of 2012, the OSB segment reported an operating loss of $0.3 million compared with a loss of $9 million in the first quarter of 2011. Sales volume were up 4% quarter over quarter, with sales price increasing by 6%.
The siding segment reported net sales of $113 million in the first quarter of 2012, an increase of 6% from $106 million in the year-ago first quarter. For the first quarter of 2012, the siding segment reported operating income of $17 million compared with $13 million in the year-ago quarter.
The Engineered Wood Product (EWP) sales in the first quarter of 2012 totaled $49 million, a slight increase from a year ago. Operating losses decreased to $3 million for the first quarter of 2012 from $6 million for the first quarter of 2011.
For the full news release of LP’s first-quarter results, click here.
The Nashville, Tenn.-based company also announced, on May 7, that it has commenced a cash tender offer and consent solicitation for any and all of its outstanding 13% Senior Secured Notes due 2017. In addition, the company announced another offering of $300 million in aggregate principal for Senior Notes due 2020.
The tender offer will expire at 12:00 midnight New York City time on Monday, June 4, unless extended or earlier terminated.