LP posts Q3 net loss, appoints COO and CFO
Louisiana-Pacific has posted a third-quarter net loss of $65.6 million, compared with a net loss of $32 million in the third quarter of 2010. Net sales for the quarter ended Sept. 30 totaled $351 million, up 8.7% from $323 million in the year-ago period.
"The building products market moved ahead at a slow place in the third quarter," CEO Rick Frost said. "Housing activity remains at low levels, consumer confidence has been negatively affected by the political situation in Washington, and job recovery remains muted. LP was agile in our response to the market conditions and ended the quarter with slightly higher cash balances than at the end of June."
For the nine months ended Sept. 30, LP reported a net loss of $124.1 million, compared with a net loss of $32.2 million in the year-ago period. Net sales for the nine months totaled $1.04 billion, down slightly from $1.07 billion in the first nine months of 2010.
LP’s Oriented Strand Board (OSB) segment reported net sales for the third quarter of $139 million, compared with $140 million in the third quarter of 2010.
The company's Siding segment, which consists of SmartSide siding and LP's prefinished Canexel siding line, reported net sales of $112 million in the third quarter of 2011, an increase of 7% from $105 million in the year-ago third quarter.
The Engineered Wood Products (EWP) segment, comprised of I-Joist (IJ), Laminated Veneer Lumber and Laminated Strand Lumber (LVL and LSL), saw third-quarter sales of $55 million, an increase of 44% from $38 million in the year-ago quarter.
"LP will continue to act cautiously for the rest of 2011 and into 2012," Frost said. "While there has been some recent good news in housing starts and remodeling activity, the base economy seems to be fairly flat. Longer term, the estimated 23.2 million adults now living with their parents should eventually become homeowners."
In other company news, LP has announced that executive VP Curt Stevens, LP's chief financial officer since 1997, will assume the interim position of executive VP and chief operating officer, newly created by the LP board of directors. Sallie Bailey will join the company as executive VP and chief financial officer.
Beginning Dec. 5, Stevens will become responsible for LP's sales and marketing, operating units and support functions, while Bailey will oversee financial matters. Both will report to Frost.
"LP will continue to benefit from Curt's experience and deep knowledge of LP in his role as chief operating officer," Frost said. "We are also very fortunate that someone of Sallie's caliber and experience has chosen to join the LP team as CFO."
Stevens is a certified public accountant and a member of the board of directors for Quanex Building Products Corp.
Bailey is also a certified public accountant and has held a variety of senior finance roles, including CFO at Ferro Corp. and senior VP, finance and controller at Timken Corp.