LP Reports Third Quarter 2012 Results

Louisiana-Pacific Corporation (LP) (NYSE: LPX) reported today results for the third quarter of 2012, which included the following:
  • Total sales for the third quarter of $468 million were higher by 33 percent compared to the year ago quarter.
  • Income from continuing operations was $31 million ($0.22 per diluted share).
  • Non-GAAP adjusted income from continuing operations was $29 million ($0.20 per diluted share).
  • Adjusted EBITDA from continuing operations for the third quarter was $75 million compared to a loss of $3 million in the third quarter of 2011.
  • Cash and cash equivalents were $491 million as of September 30, 2012.

“LP is very pleased to report significantly better results as we were able to take advantage of an improving housing market in the quarter,” CEO Curt Stevens said. “With the increasingly favorable news in housing trends, we are optimistic that the market will continue to steadily recover.”

For the quarter ended September 30, 2012, LP reported net sales of $468 million, an increase from $351 million in the third quarter of 2011. For the third quarter, the company reported an operating income of $44 million as compared to a loss of $73 million in the third quarter of 2011. The results for the third quarter of 2011 included an impairment charge on long-lived assets of $65 million.

For the third quarter of 2012, LP reported income from continuing operations of $31 million, or $0.22 per diluted share, as compared to a loss from continuing operations of $59 million, or $0.44 per diluted share for the third quarter of 2011.

ORIENTED STRAND BOARD (OSB) SEGMENT

LP's OSB segment manufactures and distributes OSB structural panel products. LP is currently operating seven facilities and has indefinitely curtailed three other facilities due to market conditions. The OSB segment reported net sales for the third quarter of 2012 of $227 million, an increase from $139 million of net sales in the third quarter of 2011. For the third quarter of 2012, the OSB segment reported operating income of $49 million compared with a loss of $16 million in the third quarter of 2011. For the third quarter, LP realized an increase of $64 million in adjusted EBITDA from continuing operations for this segment compared to the third quarter of 2011. For the third quarter of 2012 compared to the third quarter of 2011, sales volumes were up 11 percent with sales price increasing by 50 percent. The increase in sales price accounted for approximately a $71 million increase in both operating results and adjusted EBITDA from continuing operations.

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