US timber giant Louisiana-Pacific (LP) Corporation has sold 55,000 acres (22,260ha) of Texan timberland for US$37m as part of its divestiture and reorganisation programme to reduce debts.
The company will make a final forest sale during the fourth quarter by disposing of 464,000 acres in south-eastern Texas for US$285m, bringing total net proceeds from real estate sales to more than US$700m.
LP announced its divestiture programme in May last year, involving the sale of 935,000 acres of timberland, as well as plywood, panel and lumber operations.
The company’s consolidated debt as of June 30 was approximately US$1bn. Its second quarter net sales were US$478.5m, generating a net loss of US$17.2m.
Strong housing starts have helped to boost business, while prices for OSB, which represent its biggest single portion of sales, are at record levels.
