LP Q1 earnings dwindle
Economic “headwinds” challenge LP Building Solutions.
LP Building Solutions posted net sales of $582 million for the first quarter 2019, a drop of 16% from net sales of $691 million in the first quarter last year.
The Nashville, Tenn.-based building products manufacturer also reported a net income of $26 million – down more than 71% from a net income of $92 million during the same period a year ago.
Siding sales rose 4% to $236 million during the period. OSB sales fell nearly 34% to $208 million, however. Engineered wood product sales were also down, falling 15% to $90 million in the first quarter.
The bottom Line: Sales fall 16% to $582 million while profits drop more than 71% to $27 million.
What the CEO said: “Although the first quarter results were impacted by increasing macro environment headwinds, our transformation into a leading building solutions company continues,” said Brad Southern, LP Chief Executive Officer. “Our first quarter results include 13% revenue growth in LP SmartSide Trim & Siding, the launch of two new innovative products, LP SmartSide Smooth Trim & Siding and LP WeatherLogic, and we increased our volume of Structural Solutions (value-added OSB) to 40% of total OSB sold.”
Company info: Read LP’s full first quarter report here.
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