Louisiana-Pacific Corp. (LPX) on Tuesday said it sees continued growth opportunities in its siding business but is lowering its long term SmartSide Strand sales growth target to 10-12 percent to reflect slower housing starts. It has regional siding plants in Two Harbors, Hayward and Tomahawk.
The projection was part of the corporation's second quarter report, in which it revealed net income for the second quarter was $17 million and $44 million for the first six months of 2019.
“Despite stiff headwinds and a challenging economic environment, we continued to make progress this quarter, shifting our business further from the commodity space towards value-added, high-performance solutions, while efficiently balancing OSB production with demand,” said Brad Southern, LP Chief Executive Officer. “Although our LP SmartSide® Strand growth was hampered by the weak housing market, we remain confident in our ability to grow this business over the long term.”
For the second quarter, LP reported net sales of $588 million, down from $811 million in the second quarter of 2018. For the first six months of 2019, net sales were $1.2 billion, down from $1.5 billion in the same period of 2018.