LP earnings soar in Q2

Louisiana-Pacific Corporation (LP Building Solutions) reported that second quarter sales declined 6.8% to $548 million from sales of $588 million in the second quarter a year ago.

Siding sales fell 5% to $220 million for the quarter but OSB sales increased 3% to $204 million. 

Engineered wood product sales dropped 26% to $79 million while sales in South America slipped 5% to $38 million.

LP posted a net income of $31 million for the period, nearly doubling profits of $16 million in the second quarter of 2019.

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The Bottom Line: Profits jump 94% to $31 million in the second quarter.=

What the CEO said: “This was a transformative quarter for LP,” said LP CEO Brad Southern. “The siding segment completed its strategic exit from fiber and demonstrated the value of deeper relationships with our retail customers.”

“The OSB segment achieved outstanding cost of production despite a volatile production schedule. As the housing sector rebounded sharply in the second quarter, LP’s growing product diversity and customer breadth positioned us well to participate in the recovery.”

Company info: The full second quarter 2020 report from Louisiana-Pacific can be read here.