LP posts 12% rise in sales
Louisiana-Pacific (LP), one of the industry’s leading producers of oriented strand board (OSB), siding and engineered wood products, reported net sales of $332 million for the first quarter of 2011, a 12% increase over sales of $297 million in the same period of 2010.
The company reported a loss from continuing operations of $23 million for the quarter, which ended March 31, reflecting no change from the $23 million loss in the first quarter of 2010.
LP’s OSB segment, which operates eight facilities, reported net sales for the first quarter of $132 million, up 12% compared with $118 million of net sales in last year’s first quarter. For the quarter, the OSB segment reported an operating loss of $9 million compared with an operating loss of $5 million in the first quarter of 2010. Sales volumes were up 18%, with sales price decreasing by 5%.
LP’s Siding segment reported net sales of $106 million in the first quarter of 2011, up 18% from $90 million in the year-ago first quarter. For the quarter, the Siding segment reported operating income of $13 million compared with operating income of $9 million in the year-ago quarter.
The Engineered Wood Product (EWP), comprised of I-Joist (IJ), Laminated Veneer Lumber and Laminated Strand Lumber (LVL and LSL), reported sales in the first quarter of $48 million, about flat compared with the year-ago quarter. Operating losses decreased 17% to $6 million for the quarter from $7 million in the first quarter of 2010.
"At the beginning of the year, we felt some optimism in the market, but it waned as we finished the quarter," said CEO Rick Frost in a prepared statement. "LP took advantage of what the market did offer, and our operations were able to generate positive adjusted EBITDA of $10 million despite lower housing starts."
In terms of outlook, Frost said: “While the economy has begun to recover and we are seeing some job growth, which we believe is key to stimulating demand for new home construction, this uptick in employment has not yet translated into increased housing activity. In response to market uncertainty, we continue to focus on our costs and enhanced relationships with customers so that we are poised to win as housing recovers.”
Georgia-Pacific aids tornado victims
Georgia-Pacific (GP) has announced an aid package to victims of the Southeastern tornados last month that includes cash, products and matching donations.
GP will contribute $50,000 to The Salvation Army for recovery effort in the Southeast and $10,000 to the American Red Cross in Alabama. The company will also match up to a total of $50,000 in donations made by employees of GP or any other Koch company to the Salvation Army’s efforts between now and July 8.
GP has also donated bath tissue, paper towels and tabletop covers to temporary shelters in several states.
“Many communities near our facilities have been impacted,” said president and CEO Jim Hannan, noting that half of the company’s employees live and work in southeastern states affected by the tornadoes. “We also have a number of employees who have suffered losses of loved ones and property,” he added.
Sales grow at Beacon Roofing
Beacon Roofing Supply, one of the nation’s largest distributors of roofing, siding and other exterior building products, reported sales of $296.3 million in the second fiscal quarter of 2011, a 3.8% rise from sales of $285.4 million in 2010. Existing market (organic) sales, which exclude seven branches acquired subsequent to the beginning of last year’s second quarter, increased 0.2%.
Residential roofing sales decreased 11.1%. Residential roofing sales continued to be especially weak in markets affected by storms in 2009 and were also affected by continued historically low levels of new home construction.
The net loss for the second quarter, which ended March 31, was $6.2 million, compared with $6.5 million in 2010, an improvement of 4.3%.
For the first half of the fiscal year, total sales increased 7.4% to $701.1 million in 2011 from $653.1 million in 2010, while existing market (organic) sales increased 3.8%. Existing market results exclude eight branches acquired subsequent to the start of fiscal year 2010.
Net income for the first half was $3.9 million compared with $1.4 million in 2010, an improvement of 183%.
Headquartered in Peabody, Mass., Beacon Roofing Supply operates 179 branches in 37 states in the United States and in three provinces in Eastern Canada.