LP swings to profit
Louisiana-Pacific Corp. reported third-quarter sales of $467.8 million, a 33.4% increase over sales of $350.6 million in the same quarter a year ago.
Net income for the quarter, which ended Sept. 30, was $31.3 million, compared with a net loss of $65.6 million a year ago.
“LP is very pleased to report significantly better results as we were able to take advantage of an improving housing market in the quarter,” CEO Curt Stevens said. “With the increasingly favorable news in housing trends, we are optimistic that the market will continue to steadily recover.”
The company’s oriented strand board (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 third quarter of 2012 of $227 million, an increase from $139 million of net sales in the third quarter of 2011. For the third quarter of 2012, the OSB segment reported operating income of $49 million compared with a loss of $16 million in the third quarter of 2011.
LP's siding segment, used in new construction as well as in the repair and remodeling markets, reported net sales of $134 million in the third quarter of 2012, a 20% increase from sales of $112 million in the year-ago third quarter. For the third quarter of 2012, the siding segment reported operating income of $20 million compared with $12 million in the year-ago quarter.
Third-quarter sales in the engineered wood products (EWP) segment totaled $61.5 million, a 12% increase from net sales of $54.9 million a year ago. Operating losses were $3 million for both the third quarter of 2012 and 2011.
In his outlook for the months ahead, CEO Stevens said: “While housing signs look very favorable, we are certainly cognizant of potential headwinds, including a slowing global economy, an uncertain political and fiscal environment and slow job creation. Our plan is to do what is necessary to be ready to satisfy increasing demand for our products, which emerges within this broader context and respond accordingly.”