LUMBERYARDS

LP swings to profit

BY Brae Canlen

Louisiana-Pacific Corp. reported third-quarter sales of $467.8 million, a 33.4% increase over sales of $350.6 million in the same quarter a year ago.

Net income for the quarter, which ended Sept. 30, was $31.3 million, compared with a net loss of $65.6 million a year ago.

“LP is very pleased to report significantly better results as we were able to take advantage of an improving housing market in the quarter,” CEO Curt Stevens said. “With the increasingly favorable news in housing trends, we are optimistic that the market will continue to steadily recover.”

The company’s oriented strand board (OSB) segment currently operates seven facilities and has indefinitely curtailed three other facilities due to market conditions. The OSB segment reported net sales for the third quarter of 2012 of $227 million, an increase from $139 million of net sales in the third quarter of 2011. For the third quarter of 2012, the OSB segment reported operating income of $49 million compared with a loss of $16 million in the third quarter of 2011.

LP’s siding segment, used in new construction as well as in the repair and remodeling markets, reported net sales of $134 million in the third quarter of 2012, a 20% increase from sales of $112 million in the year-ago third quarter. For the third quarter of 2012, the siding segment reported operating income of $20 million compared with $12 million in the year-ago quarter.

Third-quarter sales in the engineered wood products (EWP) segment totaled $61.5 million, a 12% increase from net sales of $54.9 million a year ago. Operating losses were $3 million for both the third quarter of 2012 and 2011.

In his outlook for the months ahead, CEO Stevens said: “While housing signs look very favorable, we are certainly cognizant of potential headwinds, including a slowing global economy, an uncertain political and fiscal environment and slow job creation. Our plan is to do what is necessary to be ready to satisfy increasing demand for our products, which emerges within this broader context and respond accordingly.”

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Weyerhaeuser expands manufacturing at Louisiana mill

BY HBSDealer Staff

Weyerhaeuser has added the capability to manufacture specialty oriented strand board (OSB) using high-performance MDI adhesives at its OSB plant in Arcadia, La. The mill can now produce Weyerhaeuser Edge Gold floor panels, a subfloor product designed to resist edge swell for smooth, even floors. The MDI capabilities also enable potential production of furniture grade OSB and rimboard. 

"Converting to MDI allows Arcadia to produce higher quality OSB and gives us the ability to respond to customer needs by providing a wider variety of products not previously available close to southern U.S. markets," said Curtis Rhodes, Arcadia plant manager for Weyerhaeuser. "Plus, the curing properties of MDI allow the press to run faster, which increases our throughput."

Weyerhaeuser Edge Gold floor panels are engineered to help builders construct flat and stable floors in homes, multi-family projects and light commercial construction. In 2012, Weyerhaeuser also started adding patented Down Pore self-draining technology to the panels to drain water off during construction.

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Cedar Creek makes Texas acquisition

BY Ken Clark

Oklahoma City-based distributor Cedar Creek has entered into an agreement to purchase the assets of Capital Lumber’s distribution locations in Dallas and Houston. 

In a deal expected to close Nov. 30, Capital Lumber will continue to operate eight other non-Texas distribution centers and focus on the western United States.

“This move helps us enhance our position in a state that we have served for years,” said Clark Wiens, Cedar Creek’s VP acquisitions. “Our customer base in Texas will benefit from this consolidation, as we broaden our product assortment and continue our consistent service in this key Cedar Creek market.” 

Cedar Creek is a leading wholesale building material distribution company with 13 locations covering 20 states in the Mid-South, Midwest and Southeast.

In May 2010, Cedar Creek was recapitalized by Boston-based Charlesbank Capital Partners, with the goal of providing flexible capital for the company to grow beyond its current trade areas.

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