Louisiana-Pacific records third-quarter loss
Wood products giant Louisiana-Pacific swung to a third-quarter loss of $68 million compared with earnings of $9.5 million in the same period last year. Sales fell 10.3 percent to $472.5 million from $527 million in the same period last year.
“Both the continued deterioration in the market for new residential construction and the rising Canadian dollar drove our third-quarter operating results down,” said CEO Rick Frost. “In addition, the negative near-term housing forecast led us to curtail production at several operations and to permanently close two mills.”
Most recently, LP opted to permanently shut down operations at its St. Michel-des-Saints, Quebec, oriented strand board (OSB) mill. Operations at the plant had been halted since August 2006.
Based in Nashville, Tenn., LP is a supplier of building materials to the retail, wholesale, home-building and industrial sectors.
New home sales increase 4.8 percent
New single-family home sales increased 4.8 percent in September to an annual pace of 770,000 units, up from a downwardly revised figure of 735,000 new units in August, according to the Commerce Department.
The August figure was previously reported as 795,000, which would have meant a September decline. Sales for June and July were also revised downward — signaling that the market for new homes is weaker than previously thought.
Sears Canada earnings jump 178 percent
Toronto, Ontario–based Sears Canada reported third-quarter net earnings of C$105.2 million (US$109.4 million), a 178 percent increase over net earnings from the same quarter last year of C$37.8 million (US$39.3 million).
The company reported revenues of C$1.36 billion (US$1.42 billion), down 2.9 percent from the same quarter last year of C$1.41 billion (US$1.46 billion).
The company also reported same-store sales were down 3.9 percent for the third quarter ended Sept. 29.
The company’s earnings jumped, due mostly to $55.9 million in real estate sales for the quarter.
“The quarter had less favorable business conditions than we experienced at this time last year, most notably the unseasonably warm weather which affected our apparel categories and the improvement in the value of the Canadian dollar in relation to the U.S. dollar and the increased interest in cross-boarder shopping,” said president and CEO Dene Rogers about the decrease in sales.
Sears Canada is a multichannel retailer with a network of 196 corporate stores, 179 dealer stores and 61 home improvement showrooms.