LP posts 12% rise in sales
Louisiana-Pacific (LP), one of the industry’s leading producers of oriented strand board (OSB), siding and engineered wood products, reported net sales of $332 million for the first quarter of 2011, a 12% increase over sales of $297 million in the same period of 2010.
The company reported a loss from continuing operations of $23 million for the quarter, which ended March 31, reflecting no change from the $23 million loss in the first quarter of 2010.
LP's OSB segment, which operates eight facilities, reported net sales for the first quarter of $132 million, up 12% compared with $118 million of net sales in last year's first quarter. For the quarter, the OSB segment reported an operating loss of $9 million compared with an operating loss of $5 million in the first quarter of 2010. Sales volumes were up 18%, with sales price decreasing by 5%.
LP's Siding segment reported net sales of $106 million in the first quarter of 2011, up 18% from $90 million in the year-ago first quarter. For the quarter, the Siding segment reported operating income of $13 million compared with operating income of $9 million in the year-ago quarter.
The Engineered Wood Product (EWP), comprised of I-Joist (IJ), Laminated Veneer Lumber and Laminated Strand Lumber (LVL and LSL), reported sales in the first quarter of $48 million, about flat compared with the year-ago quarter. Operating losses decreased 17% to $6 million for the quarter from $7 million in the first quarter of 2010.
"At the beginning of the year, we felt some optimism in the market, but it waned as we finished the quarter," said CEO Rick Frost in a prepared statement. "LP took advantage of what the market did offer, and our operations were able to generate positive adjusted EBITDA of $10 million despite lower housing starts."
In terms of outlook, Frost said: “While the economy has begun to recover and we are seeing some job growth, which we believe is key to stimulating demand for new home construction, this uptick in employment has not yet translated into increased housing activity. In response to market uncertainty, we continue to focus on our costs and enhanced relationships with customers so that we are poised to win as housing recovers.”