LP swings to profit as sales rise 34%
Nashville, Tenn.-based Louisiana-Pacific Corp. (LP) reported second-quarter sales of $573 million, up 34% compared with the year-ago quarter.
“This was another good quarter for LP as the U.S. housing market continues to recover,” said CEO Curt Stevens. “While OSB prices moderated during the second quarter, this segment showed good earnings. Strong demand in siding and South America also added to our results.”
Net income was $94.1 million, compared with a net loss of $37.3 million in last year’s second quarter.
LP’s siding segment consists of LP SmartSide siding as well as LP’s prefinished CanExel siding line. These products are used in new construction, as well as in the repair and remodeling markets.
LP’s Siding segment -- LP SmartSide siding as well as LP’s prefinished CanExel siding line -- reported net sales of $153 million in the second quarter of 2013, an increase of 11% from $137 million in the year-ago second quarter. Engineered Wood Products increased from $52 million reported last year, to $61 million in the second quarter of 2013.
“Housing starts appear to have been constrained by weather, labor and financing issues in the second quarter,” said Stevens. “We will continue to be agile in our operations as the weather improves and builders address these issues. The consensus projection for housing starts for this year is a 25% increase over 2012, with starts projected to increase at least another 25% in 2014. We will be ready to respond.”