LP sales jump 28% in Q3
Paced by growth in its SmartSide exterior siding business, Louisiana-Pacific Corp. reported third-quarter sales of $596 million, up 28% from the same quarter last year.
The company, which also announced Monday morning a mill-exchange deal with Norboard, swung to a profit of $66 million.
“I’m very pleased with our results this quarter,” said Curt Stevens, CEO. “Net sales in the quarter increased by 28% led by a 25% increase in SmartSide volumes and continued strength in OSB prices. Year-to-date, net sales improved by 18% and we increased our cash by $125 million.”
For the nine months ended September 30, 2016, LP reported net sales of $1.7 billion compared to $1.4 billion in the first nine months of 2015.
“Housing starts, particularly single family, should continue to grow over the next several years,” continued Stevens. “The transaction we announced this morning with Norbord will increase our flexibility to add future siding capacity and the continued focus on value-added products will improve our over-the-cycle margins.”
The agreement with Norboard is expected to provide additional siding capacity by the end of 2018. Under the deal, LP will swap ownership of its Chambord, Quebec, mill for Norbord’s Val-d’Or, Quebec, mill. The asset exchange is expected to be complete in early November 2016.
The company’s engineered wood products segment is comprised of I-Joist, Laminated Veneer Lumber and Laminated Strand Lumber. EWP reported net sales in the third quarter of 2016 totaled $81 million, up 8% from the year-ago quarter. Operating income increased to break even for the third quarter of 2016 from a $1 million loss in the third quarter of 2015.
Also on Monday, the company announced that the Board of Directors has appointed Executive Vice President Brad Southern to the newly created position of chief operating officer for the purpose of implementing its orderly management succession plan. He will continue to oversee the oriented strand board (OSB) operations, a post he has held since 2014.
