LP posts $81 million loss
Louisiana-Pacific, one of the industry’s largest producers of oriented strand board (OSB) and other wood products, reported a second-quarter net loss of $81 million, compared to a net loss of $23 million in the second quarter of 2007.
Sales were $387 million for the second quarter, down 16 percent from $461.2 million in the year-ago period.
For the first six months, LP has recorded a loss of $127 million, wider than the $60.6 million loss during the first half of 2007.
The company took “significant curtailments in the quarter to match supply with orders,” said CEO Rick Frost in a prepared statement. “These shutdowns, coupled with significantly higher material costs, put downward pressure on our margins.”
Other non-operating costs listed for this past quarter included a loss of $5.3 million associated with a facility explosion and a loss of $1.2 million connected to a contractor who defaulted on a construction project.
Frost also noted a $48 million charge related to the settlement in an OSB antitrust lawsuit. Nashville-based LP is the fifth company to come to a settlement in the antitrust case, filed in 2006, which alleges that OSB manufacturers began conspiring together in 2002 to artificially reduce the supply and inflate prices of OSB.
Four other defendants have reached settlements so far: Potlatch, Huber Engineered Woods, Ainsworth and Georgia-Pacific.
All the companies have denied the accusations as part of their settlements, including LP, which wrote in a statement that it came to the settlements “in order to limit the risks and costs associated with at least two lengthy jury trials.”
“LP has vigorously contested the plaintiffs’ allegations and vehemently denies that it violated any U.S. antitrust law or any other law,” the company said in a statement.
OSH hires merchandising executive
San Jose, Calif.-based Orchard Supply Hardware (OSH) has announced the appointment of Mark Kauffman as senior vp-merchandising.
Kauffman, a 25-year industry veteran, will be responsible for merchandising and category management as well as providing key leadership for the company’s strategic growth initiatives.
“Mark’s experience and leadership will strengthen our team’s capabilities, allowing us to take our merchandising and assortment strategies to a world class level,” said Rob Lynch, OSH president and CEO. “Additionally, Mark will bring valued insight across the entire business as we design new programs to build our brand with our core home improvement customer segments.”
Before joining OSH, Kauffman was senior vp-merchandising and retail stores at Northern Tool and Equipment in Burnsville, Minn., where he led merchandising strategies and initiatives for the multichannel brand for six years. Prior to that, Kauffman was senior vp/general merchandise manager at Lowe’s, where he helped the company reposition itself in the market.
Kauffman began his career at Wolohan Lumber, where he served in various roles in operations, merchandising and marketing.
Former Landscape Supply store sells for $3.4 million
A former Home Depot Landscape Supply location has been purchased by a division of Arlington, Texas-based Chesapeake Energy Corp. for $3.4 million, or approximately $276 per square foot, according to realty sales tracking service CoStar.
The 12,383-square-foot location, also in Arlington, Texas, includes an outdoor landscape area of 25,890 square feet.
Ram Realty Services of Palm Beach Gardens, Fla., purchased Home Depot’s former Landscape Supply stores in Texas and Georgia earlier this year, paying $22 million for the 11 sites. Home Depot shuttered the Landscape Supply stores in November 2007.
Ram Realty said at that time it would determine on a case-by-case basis which of the Landscape Supply stores would be redeveloped, and which would be sold to “strategic users” like Chesapeake Energy.
Chesapeake Energy has not made an announcement of how it plans to develop the site.