Sales rise 18% at Louisiana-Pacific Corp.
Louisiana-Pacific Corp., one of the industry’s leading suppliers of oriented strand board (OSB) and other building materials, announced net sales of $428 million for its second fiscal quarter, an 18% hike over sales of $362.4 million in the same quarter a year ago.
Net loss for the second quarter, which ended June 30, was $37.3 million, compared with a net loss of $35.4 million in the corresponding quarter of 2011. The results for the second quarter of 2012 include an early debt extinguishment charge of $52 million associated with its recent financing.
"We are pleased that LP returned to profitability in the second quarter, after adjusting for the costs associated with our successful debt refinancing,” said CEO Curt Stevens. “Higher OSB prices and volume and continued volume growth in our siding business were the primary drivers for the improvement in our results.”
The OSB segment reported net sales of $195 million for the second quarter of 2012, an increase from $141 million a year ago. Operating income for the OSB segment during the second quarter was $17 million, compared with a loss of $23 million in the second quarter of 2011. The company reported that sales volumes were up 13% with sales price increasing by 22%. LP is currently operating seven OSB facilities and has indefinitely curtailed three other plants due to market conditions.
The company’s siding segment reported net sales of $137 million in the second quarter of 2012, an increase of 16% from $119 million in the year-ago second quarter. For the second quarter of 2012, LP posted operating income of $19 million for its siding products, compared with $11 million in the year-ago quarter.
The Engineered Wood Product (EWP) segment, comprised of I-Joist, Laminated Veneer Lumber and Laminated Strand Lumber, registered sales of $52 million in the second quarter, a slight decrease from a year ago. Operating losses was $3 million for both the second quarter of 2012 and for the second quarter of 2011.
The Nashville, Tenn.-based company’s outlook for the second half of the year was “cautiously optimistic,” according to a released statement. “Though it appears that the general economy may be slowing, housing activity continues to improve,” said Stevens.