Net annual sales from continuing operations decreased by 2% to US$3.9bn, with siding solutions net sales increasing by 26% to US$1.5bn and OSB net sales decreasing by 14% to US$2.1bn.

In Q4, 2022, net sales from continuing operations decreased by 16% to US$705m, including 14% from lower OSB prices.

Q4 siding solutions net sales increased by 38% to US$385m – a fourth quarter record – while OSB net sales decreased by 45% to US$257m, including 34% from lower OSB prices.

Adjusted company EBITDA for Q4 was US$100m, a decrease of US$178m.

Q4, 2022 saw a decrease in OSB prices of US$120m and a decline in OSB volume of US$92m due to production curtailments and conversion of the Sagola OSB mill to siding production, partially offset by siding solutions revenue growth of US$106m.

The total net impact on sales of decreasing OSB prices during 2022 was US$400m.

LP invested US$414m in capital expenditures during 2022, including US$193m on siding capacity expansions.

“Inflationary pressures continue to present headwinds, housing starts have softened, and OSB prices remain depressed after falling steeply in the fourth quarter,” said LP Chairman and CEO Brad Southern. 

“However, LP has managed through challenges like these before. I am bullish about the long-term fundamentals for housing, and very confident that LP's strategy of growth specialization will continue to deliver value in 2023.”

With over US$900m of liquidity, including US$383m in cash, LP says it had significant flexibility and well positioned to withstand near-term headwinds and execute its growth and transformation strategy.

Looking forward, the first quarter of 2023 revenue in siding solutions is expected to decrease year-over-year by up to 5%.

OSB revenue in Q1 is expected to be sequentially lower than Q4, 2022 by approximately 20%, “assuming that OSB prices published by Random Lengths remain unchanged from those published on February 17, 2023”. 

LP’s South Americas segment manufactures and distributes OSB structural panel and siding products in South America and certain export markets. This segment has manufacturing operations in two countries, Chile and Brazil, and operates sales offices in Chile, Brazil, Peru, Colombia, Argentina, and Paraguay.

South America net sales decreased year-over-year for both the fourth quarter and full year 2022 largely due to lower volumes and unfavourable foreign currency movements, partially offset by higher local OSB prices. 

The year-over-year decreases in adjusted EBITDA of US$10m and US$36m for the three and twelve months ended December 31, 2022, respectively, reflect the impacts of the lower revenue and higher raw material costs.