LP is in the black this Q1

Louisiana-Pacific Corporation had a progress-filled first quarter, not the least of which included a return to positive income.

Net sales for the quarter were up 7% year-over-year to $505 million, with net income of $10 million up from a net loss of $35 million in the year prior.

Adjusted EBITDA from continuing operations also got a nice boost to $52 million, compared to $6 million in the year-ago period.

“The first quarter established a good to start to the year for LP,” said CEO Curt Stevens. “Despite a 7% drop in North American North Central (7/16" basis) benchmark OSB pricing, our focus on value-added products and improved logistics coupled with higher plant utilization allowed us to post improved sequential results."

Stevens added that 22% growth in volumes for sequential LP SmartSide siding marked a new quarterly record.

Additionally, in South America, the Adjusted EBITDA was more than 50% higher than last year.

“The first quarter was a pretty good quarter financially, but the better story is how we are set up for the second quarter and beyond," added Stevens. "The Swan Valley siding ramp-up is ahead of plan and the Hanceville press rebuild completed in January is meeting expectations. OSB prices started to rise in March and have continued to increase so far this quarter, and the order intake for Siding is strong. With rising housing starts and robust repair / remodeling activity, the demand for our products should improve."