Louisiana Pacific on Wednesday reported its fourth quarter and full year results.
Net income for the fourth quarter was $17 million and $395 million for the year. Net sales for the fourth quarter were $589 million, 17 percent lower than prior quarter. Total net sales for the year were $2.8 billion, 3 percent higher than the previous year.
Siding segment results were negatively impacted in the fourth quarter by increased marketing investments, which LP said would be temporary. In the region, LP makes siding in Two Harbors, Hayward and Tomahawk. LP re-affirms its long-term SmartSide Strand revenue growth target of 12-14 percent.
LP authorized a new $600 million share repurchase program, including the intent to initially enter into a $400 million accelerated share repurchase program. This is expected to result in LP repurchasing $638 million of stock during 2019 when combined with the $38 million outstanding under the previous $250 million stock repurchase authorizations.
The company also announced a 4 percent increase in its quarterly cash dividend to $0.135 per share.
LP said it expects capital expenditures for 2019 to be in the range of $150 million to $180 million. The forest products firm reiterated its long-term growth target of 12-14 percent on Smart Side sales growth but is guiding to the lower end of the range for 2019 based upon projected flat housing starts.