LP's sales up 67% in second quarter

31 July, 2010

Louisiana-Pacific Corporation (LP) has reported a 67% increase in second-quarter sales to US$447m.

Adjusted profits from continuing operations were US$75m, compared to a US$11m loss in the second quarter of 2009.

"Our results for this quarter reflect the higher OSB pricing and increased volume of shipments in all product lines compared to the same quarter last year," said CEO Rick Frost.

"Unfortunately, demand began to taper significantly in the second half of May and this weakness continued into June. Jobs, consumer confidence, inventory of vacant homes for sale and the overall state of the economy have had a downward pull on housing."

The company’s OSB division reported net profits of US$48m (2009: US$18m loss). Sales volumes were up 24% on a year ago, with price increasing by 78%.

The siding division reporting operating profits of US$22m (2009: US$7m).

Engineered wood (LVL, LSL and I-joists) sales more than doubled but still recorded a US$4m loss (2009: US$9m loss).

"For housing, there is growing agreement that the timing and strength of the recovery will be determined by the size of the inventory of excess vacant homes and household formations enabled by job recovery,” added Mr Frost.

“ I believe we'll see an erratic path for the rest of 2010 and into next year,"