Louisiana-Pacific Corporation (NYSE: LPX) reported results for the third quarter of 2018. The company reported:
- Net sales for the third quarter were $737 million, up 3 percent compared to the year ago quarter.
- Income from continuing operations was $124 million.
- Deployed approximately $60 million in cash to repurchase 2.1 million shares during the third quarter.
“We are pleased to report our third-quarter results, which highlight solid strategic and operational execution. Against a backdrop of OSB pricing headwinds, our results continue to validate our strategy to transform LP into a leading building solutions company and also show the strength in our value-add and specialty products, including LP SmartSide® siding and trim,” said Brad Southern, LP Chief Executive Officer.
For the nine months ended Sept. 30, LP reported net sales of $2.2 billion compared to $2.0 billion in the first nine months of 2017. LP reported income from continuing operations of $382 million compared to $260 million for the same period in 2017.
The siding segment, which includes siding made in Two Harbors, Hayward and Tomahawk, reported net sales of $241 million in the third quarter of 2018, an increase of $15 million from $226 million in the third quarter of 2017. For the third quarter of 2018, the siding segment reported operating income of $60 million compared to $53 million in the third quarter of 2017. For the first nine months, siding reported sales of $729 million, up 9 percent from the prior year and had an operating income of $168 million compared to $143 million in 2017.
“Looking forward, while we are encouraged by the overall fundamentals in housing, we have experienced pricing declines in OSB associated with some recent supply and demand imbalances. To address this, we will continue to adjust our commodity OSB production to reflect changes in demand. We remain confident in our ability to deliver on our commitments to shareholders by returning capital through dividends and share repurchases while prudently operating our assets and investing in key growth opportunities to continue our transition to more value-add and specialty products,” Southern concluded.