LP swings to profit in Q2

Louisiana-Pacific Corporation swung to a profit in the second quarter, pointing to strength across the board thanks and a slow but steady housing recovery.

Sales for the second quarter of $582 million were higher by 18 percent compared to the year ago quarter.

“This was an outstanding quarter for LP as every one of our segments helped drive net income of more than $30 million,” said Curt Stevens, CEO.

LP Corp. by the numbers:

Q216 Net sales: $582,400,000

Q215 Net sales: $493,000,000

% change: up 18.1%

Q216 Net income: $31,700,000

Q215 Net income: ($19,500,000)

The Siding segment reported net sales of $207 million in the second quarter of 2016, an increase of $43 million from $164 million in the year-ago second quarter. For the second quarter of 2016, the Siding segment reported operating income of $42 million compared to $29 million in the year-ago quarter.

The Engineered Wood Products  segment reported net sales in the second quarter of 2016 totaled $78 million, up 8% from the year-ago quarter.

“While I now expect 2016 housing starts to be up less than 10% over last year, this muted recovery actually bodes well for the future as there will likely be a long period of improving housing activity,” continued Stevens. "With our broad portfolio of commodity and value-added products, LP is in an excellent position to capitalize on growth in housing starts, repair and remodel activity, retail and industrial markets.”