LP, the world’s largest OSB producer, reported a 15% sales boost in OSB sales to US$245m in Q3 (2012: (US$227m). The division recorded operating profits of US$30m (2012: US$49m), reflecting a 5% drop in sales prices – amounting to US$15m – compared to a year ago.
LP’s engineered wood products division, comprising I-joists, LVL and laminated strand lumber (LSL), continued to make an operating loss – US$2m in Q3 (2012: -US$3m). The loss for the nine months ended September 30 totalled US$10.6m (2012: -US$9.3m).
Engineered wood product sales in Q3 were up to US$72m (2012: US$62m).
LP’s siding (cladding) business performed well, with operating profits increasing by US$3m to US$23m, while sales were up 11% to US$149m.
"Each of our business segments generated positive EBITDA (earnings before interest, tax, depreciation and amortisation) in the quarter," said LP CEO Curt Stevens.
"OSB prices continued to decline in the quarter which hurt our earnings, while siding and South America had better results than the same quarter last year.
"We saw the pace of improvement in the housing market slow over the summer. However, the pace of permit activity, builder confidence and a slightly better economy should allow housing starts to grow in coming quarters."
