LP sales slip in Q2

Louisiana-Pacific Corp. (LP Building Solutions) reported revenue for the second quarter slipped 3% to $1.13 billion from sales of $1.17 billion for the second quarter 2021.

OSB sales for the quarter decreased 14% to $673 million as prices fell by 22%. Volume increased by 10%, however, driven by the restart of the LP’s Peace Valley mill in Fort St. John, British Columbia.

Siding Solutions net sales increased by 24% to $356 million.

LP paid $471 million to repurchase 7.3 million of its common shares during the quarter leaving 77.2 million common shares outstanding as of June 30.

Income from continuing operations fell 28% for the quarter to $348 million.

On Aug. 1, LP completed the sale of its engineered wood products segment to Pacific Woodtech. LP reported EWP segment results for the quarter as discontinued operations.

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The Bottom Line: Sales slide 3% in the second quarter as the company’s profits from continuing operations tumble 28%. 

What the CEO said:  "Including the EWP segment, the second quarter of 2022 was another record sales quarter for LP," said LP Chair and Chief Executive Officer Brad Southern. "Despite ongoing raw material inflation and logistics challenges, LP's teams consistently executed our strategy to meet sustained customer demand. The new Siding mill in Houlton, Maine, is ramping up ahead of schedule, and contributed to Siding reaching a quarterly sales record of $356 million. With Structural Solutions mix exceeding 50% for the first six months of 2022, we believe LP is now the leading producer of specialty OSB, offering the widest array of specialty OSB building solutions. While we are monitoring inflation and interest rates closely, so far we see few signs of diminished demand for our products."

Company info: The full second quarter 2022 financial report from LP Buildling Solutions is available here.