LP posts strong Q4
Louisiana-Pacific has reported total sales for the fourth quarter of $459 million, up 47% from $312 million in the fourth quarter of 2011. The company reported operating income of $47 million in the fourth quarter, compared with an operating loss of $26 million in the fourth quarter of 2011.
For the year ended Dec. 31, 2012, LP reported net sales of $1.7 billion compared with $1.4 billion in 2011. Operating income totaled $107 million, compared with an operating loss in 2011 of $140 million.
“We are very pleased that LP is reporting both a profitable fourth quarter and a profitable 2012,” said CEO Curt Stevens. “The U.S. housing recovery picked up momentum in the fourth quarter, with annual housing starts at a seasonally adjusted rate of 954,000 in December. This increase in demand resulted in better OSB pricing and good performance in our Siding segment.”
The OSB segment reported net sales for the fourth quarter of $243 million, up 86% compared to $131 million of net sales in the fourth quarter of 2011. For the full year, OSB reported sales of $814 million, up 50% from the prior year.
The Siding segment reported net sales of $117 million in the fourth quarter of 2012, an increase of 25% from $93 million in the year-ago fourth quarter. For the full year, Siding reported sales of $501 million, up 17% from the prior year.
EWP segment sales in the fourth quarter of 2012 totaled $52 million, up 11% from $46 million in the year-ago quarter. For the full year, EWP reported sales of $213 million, up 5% from the prior year.
Builder confidence in 55+ housing market improves
Builder confidence in the 55+ housing market for single-family homes showed continued improvement in the fourth quarter of 2012 compared with the same period a year ago, according to the National Association of Home Builders’ (NAHB) latest 55+ Housing Market Index (HMI) released today.
The index rose 10 points to 28, the fifth consecutive quarter of year-over-year improvements.
“We continue to see increased optimism from builders and developers in the 55+ housing segment,” said Bob Karen, chairman of NAHB’s 50+ Housing Council and managing member of the Symphony Development Group. “Those customers who had been on the sidelines waiting for more stability in their local markets are starting to make their move toward either purchasing a home or renting an apartment that is designed to more specifically suit their lifestyle.”
There are 55+ HMIs for two segments of the 55+ housing market: single-family homes and multi-family condominiums. Each index measures builder sentiment based on a survey that asks if current sales, prospective buyer traffic and anticipated six-month sales for that market are good, fair or poor. An index below 50 indicates that more builders view conditions as poor than good.
Present sales for the 55+ single-family HMI climbed 10 points to 27, expected sales for the next six months increased 12 points to 38 and traffic of prospective buyers rose nine points to 24.
“Like the overall housing market, the 55+ segment of the market is undergoing a slow but steady recovery,” said NAHB chief economist David Crowe. “That said, there are serious obstacles to a continued and stronger recovery. While problems with tight credit conditions for buyers and obtaining accurate appraisals are still lingering, new problems like spot shortages and rising costs for labor, materials and lots are beginning to emerge.”
Mixed results for Beacon Roofing Supply
Peabody, Mass.-based Beacon Roofing Supply sales increased 4.9% to $513.7 million in the first quarter, up from $489.9 million in the same quarter last year.
Existing-store sales declined 4.6%, or 7.7%, when adjusted to the same number of business days.
In existing same-store markets, residential and non-residential roofing product sales decreased 5.4% and 6.1%, respectively, while complementary product sales increased 2.9%. Part of the decline can be blamed on “last year’s very high level of re-roofing activities, including the beneficial impact from mild weather in December 2011 and strong business in several markets that experienced significant storms in 2011, and lower average residential roofing selling prices this year,” said Paul Isabella, president and CEO.
Net income for the first quarter was $18.2 million, down 4.8% from $19.1 million in the same quarter of 2012.
The company pointed to some shrewd bargaining that put it on track for a strong showing in 2013. “Toward the end of the first quarter, we took advantage of our financial capacity and flexibility to purchase key products ahead of announced industry-wide price increases scheduled mostly for February and April,” Isabella said.
Also, in announcing its earnings, the company took the opportunity to mention its acquisition streak. “We continue aggressively to seek quality companies that fit our target acquisition profile, such as McClure-Johnston and Ford Wholesale, which we acquired in the first quarter,” Isabella said.