Losses narrow at LP
Louisiana-Pacific, one of the industry’s leading producers of oriented strand board, siding and engineered wood products, reported sales of $275.1 million for the fourth quarter of 2009, a 10% increase over sales of $250.2 million in the same period of 2008. Losses from continuing operations were $46.8 million for the quarter, which ended on Dec. 31, 2009. This compares with losses of $339.6 million for the fourth quarter a year ago.
For the full year, LP reported net sales of $1.1 billion, a 23% decline compared with sales of $1.4 billion in fiscal year 2008. The company’s net loss from continuing operations for 2009 was $117 million, compared with $565 million in fiscal 2008.
In the company’s oriented strand board (OSB) division, net sales for the fourth quarter of 2009 rose 4% to $114 million. During the quarter, LP operated eight facilities in the segment. Just prior to year's end, LP made the decision to permanently close the two previously indefinitely curtailed mills in Athens, Ga., and Silsbee, Texas.
The engineered wood product (EWP) segment posted sales in the fourth quarter of 2009 of $44 million, down 2% from $45 million in the year-ago period.
LP's Siding segment, which sells into both the new construction and remodeling markets, reported net sales of $86 million in the fourth quarter of 2009, up 13% from $76 million in the year-ago fourth quarter.
In a prepared statement, company CEO Rick Frost said he was glad 2009 was in the rearview mirror. "All of our operating segments improved in 2009, despite housing starts falling by 39%,” Frost said.
Going forward, Frost said LP was prepared to deal with whatever the economy had to offer.
“The consensus view is that the housing market in 2010 will be better than last year, although there is much debate about the pace and magnitude of the recovery,” Frost said. “With current stimulus programs scheduled to end and new programs being considered to improve the job situation and access to funds, the economy is likely to remain volatile. From LP's perspective, we have demonstrated the flexibility to improve results in a declining market. I believe that our people will continue to respond successfully to whatever market situation arises this year."
