In its annual report, Louisiana Pacific reported net sales increased by 60 percent to $860 million during its fourth quarter. SmartSide net sales increased by 30 percent to $257 million, bringing full year SmartSide net sales growth to 15 percent. The forest products firm manufactures siding in Two Harbors and Hayward.
For the full year, net sales increased by 21 percent to $2.8 billion.
"LP ended 2020 having exceeded our 3-year transformation targets for growth and efficiency, with a cumulative EBITDA impact of $178 million. We reached this milestone a year early, largely as a result of exceptional SmartSide sales growth, which reached 30% in Q4," said LP Chairman and Chief Executive Officer Brad Southern. "In order to meet growing customer demand for SmartSide and OSB, LP will convert our mill in Houlton, Maine to the manufacture of SmartSide, with production beginning early in 2022, and we have begun the process to restart our OSB mill in Peace Valley, British Columbia."
For the fourth quarter of 2020, OSB net sales increased by $256 million from 2019, primarily due to $246 million of increased OSB prices and a 2 percent increase in shipments. For the full year 2020, net sales increased by $443 million (or 57 percent) from 2019, primarily due to $481 million of increased OSB prices, partially offset by a 5 percent reduction in shipments.