Siding sales up, OSB down at LP
Louisiana-Pacific Corporation (LP) has reported its financial results for the three and nine months ended September 30, 2024. Highlights include (all comparisons from Q3 of 2023):
- Siding net sales increased by 22 percent to $420 million.
- Oriented strand board (OSB) net sales decreased by 24 percent to $253 million.
- Consolidated net sales decreased by 1 percent to $722 million.
- Net income was $90 million, a decrease of $27 million.
- Net income per diluted share was $1.28 per share, a decrease of $0.35 per share.
- Adjusted EBITDA was $153 million, a decrease of $37 million.
- Cash provided by operating activities was $184 million, a decrease of $3 million.
"LP’s teams executed our strategy to drive growth, margin, specialization and efficiency in the third quarter,” said LP CEO Brad Southern. “As a result, the Siding segment set new records for net sales and adjusted EBITDA, and the OSB segment delivered a solid quarter in a challenging price environment with operational efficiency, cost control and outstanding safety.”
First nine months of 2024 highlights
Net sales for the first nine months of 2024 increased year-over-year by $338 million (or 18 percent). Siding revenue increased by $200 million (or 20 percent), due to 6 percent higher prices and 14 percent higher volumes.
OSB revenue increased by $164 million (or 22 percent), driven by 8 percent higher prices and 12 percent higher volumes.
Net income increased year-over-year by $239 million to $358 million ($5.00 per diluted share). The increase primarily reflects a $215 million increase in adjusted EBITDA, $49 million of changes in business exit credits and charges, and $16 million of prior year settlements of OSB patent-related claims. This was partially offset by a $50 million increase in the provision for income taxes. The year-over-year increase in adjusted EBITDA includes a $117 million impact from higher Siding net sales, $47 million due to higher OSB selling prices and a $53 million impact from higher OSB sales volumes.
Click here for LP's full Q3 2024 financial report.
