For the first quarter of 2019, Louisiana Pacific reported net income of $27 million compared to $91 million for the first quarter of 2018. Net sales were $582 million, down from $691 million in the first quarter of 2018.
The company’s sales of SmartSide, which is made in Two Harbors, Hayward and Tomahawk, increased 13 percent compared to the first quarter of 2018. The siding segment reported net sales of $236 million in the first quarter of 2019, an increase of $9 million from $227 million in the first quarter of 2018. For the first quarter of 2019, the Siding segment reported operating income of $33 million compared to $36 million in the first quarter of 2018.
LP re-affirmed its long-term SmartSide Strand revenue growth target of 12-14 percent.
The corporation reported $8 million in operational improvements and supply chain optimization towards 2021 target of $75 million. It also paid $438 million in the first quarter as part of share repurchase programs.
“Although the first quarter results were impacted by increasing macro environment headwinds, our transformation into a leading building solutions company continues,” said CEO Brad Southern. “Our first quarter results include 13 percent 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 percent of total OSB sold.”
During the quarter, LP entered into a $400 million accelerated share repurchase program and purchased the remaining $38 million under the previous $250 million stock repurchase authorizations. LP reaffirms its commitment to the maximum liquidity target of $400 million, comprising $200 million in cash on hand and $200 million in available debt capacity. Additionally, LP announced its quarterly cash dividend of 13.5 cents per share will be paid on June 3 to shareholders of record on May 21.