Louisiana-Pacific Corporation (LP Building Solutions) reported first quarter sales surged by 71% to $1 billion compared to first quarter 2020 sales of $585 million.
Siding revenue increased 35% to $285 million during the first quarter as oriented strand board (OSB) sales jumped 145% to $539 million, partially fueled by high prices.
Engineered wood products (EWP) sales rose 24% to $123 million for the period as South American sales were up 47% to $53 million.
LP also posted a first quarter net income of $320 million, soaring from a net income of $33 million for the same period a year ago.
Looking ahead, LP forecasts siding sales to grow by more than 30% in the second quarter with OSB sales also up 30%.
The Bottom Line: LP posts big profit gains and a net income of $320 million as OSB sales, fueled by rising prices, jump 145%.
What the CEO said: "LP's Siding and OSB segments both set records for sales and EBITDA in the first quarter," said LP Chairman and CEO Brad Southern. "LP's operations, procurement, and logistics teams overcame supply chain challenges as well as extreme winter weather in the southeast to deliver outstanding results. Capacity expansion projects are underway at Houlton and Peace Valley in order to meet strong and growing demand for innovative SmartSide and Structural Solutions products."
Company info: Click here to read LP’s full first quarter 2021 financial report.