Sales, profits fall at LP Building Solutions
Building products manufacturer LP Building Solutions reported that third quarter consolidated net sales fell 15% to $748 million compared to sales of $852 million in the third quarter 2022.
Sales of siding products declined 13% to $345 million with lower product volumes partially offset by higher prices. Additionally, oriented strand board (OSB) sales decreased 14% to $335 million. LP said OSB sales also saw lower volume while prices were increased.
Income attributed to LP from continuing operations for the third quarter of 2023 decreased year-over-year by 9% to $118 million compared to $226 million for the same period a year ago.
Given the current building products climate, LP has issued a revised outlook for its fourth quarter and full-year financial results.
LP said it expects siding full-year 2023 net sales is expected to decrease year-over-year by approximately 10%. The Nashville, Tennessee-based company also said it expects OSB fourth quarter 2023 net sales to be “sequentially lower” than the third quarter 2023 by approximately 30%.
The building solutions provider is also projecting its fourth quarter 2023 Adjusted EBITDA expected to be range between $60 million to $80 million.
###
The Bottom Line: Despite higher prices, lower sales volume in LP’s core categories resulted in a 15% sales decrease and a 9% drop in earnings.
What the CEO said: "As expected, siding sales volume, price, and net sales all increased sequentially compared to the second quarter, and we believe siding inventories have normalized," said Brad Southern, Chair and Chief Executive Officer. "
Company Info: Click here to read the full third quarter 2023 financial report from LP Building Solutions.
