LP loses momentum in Q2
Nashville, Tennessee-based Louisiana-Pacific Corporation slowed down in the second quarter of 2014, which saw a sales decline of 9% and significantly lower earnings for the building products giant.
Net sales for the three months ended June 30 were $518.5 million, down from $567.0 million in 2013. Sales for the six-month period were also down year-over-year, netting $963.2 million in comparison to $1.1 billion last year.
Net income for the quarter was $2.1 million, down from $94.1 million in the year-ago period. LP also posted a loss of $12.1 million for the six-month period, compared to income of $159.4 million in 2013.
LP’s second-quarter performance included bright spots. The Siding segment posted an 11% increase in net sales. Engineered Wood Products were up 32.8%.
“LP’s Siding business had another quarter of record volume shipments of SmartSide despite a tepid housing recovery in the quarter,” said CEO Curt Stevens. “Strong demand from retail, repair and remodeling and non-residential structures allowed for continued growth in this business.”
LP’s Oriented Strand Board segment was down 26.8% year-over-year, however.
“All the signs point to improving demand for housing given demographics, an improving economy and job growth,” continued Stevens. “However, for this recovery to reach its potential, steps must be taken to foster credit access to the first time home buyer."
Rodda Paint buys five Kelly-Moore stores
Rodda Paint Co. will acquire five Kelly-Moore company-owned stores, four located in Idaho and one on the Oregon border.
The stores are located in the Idaho cities of Caldwell, Meridian, Boise and Twin Falls. The Oregon store is in Ontario.
Rodda is described as the largest family-owned and operated paint and coatings company in the Pacific Northwest, based in Portland, Oregon. The five new stores will join Rodda’s retail group of 48 locations and its network of 23 independent retailers.
Rodda will continue to distribute Kelly-Moore paint.
“Kelly-Moore is excited to announce this alliance with Rodda Paints,” said Steve DeVoe, CEO and president of Kelly-Moore Paints.
According to DeVoe, while both Kelly-Moore and Rodda drive for increased sales in the Idaho market, Kelly-Moore will continue its aggressive retail expansion with eight new retail stores in California slated to open by 2015, including their recently opened locations in Petaluma and Daly City. Kelly-Moore currently owns and operates 146 paint stores.