Louisiana-Pacific Corp. (LP) today reported a vast improvement in loss from continuing operations in the fourth quarter with a 96% decrease to $2 million, compared to $47 million during the same period in 2009. For the year, the company posted a loss from continuing operations of $32 million, which was a 73% improvement over 2009's numbers.
The Nashville, Tenn.-based company's fourth quarter total sales results also increased by 14% to $316 million. For the year, the company posted net sales of $1.4 billion, a 30% increase over the $1.1 billion the company brought in during 2009.
The company announced adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) was an income of $200,000, compared to a $20 million loss during fourth quarter 2009. LP announced adjusted EBITDA from continuing operations was an income of $82 million for the year, compared to a $44 million loss during 2009.
"LP recorded positive adjusted EBITDA in the fourth quarter, a testament to our operational improvements and outstanding execution by our sales force," said CEO Rick Frost.
LP's oriented stand board (OSB) segment saw 11% growth in net sales to $127 million during the fourth quarter. The segment was also able to cut operating loss to $13 million, down from the $17 million operating loss the company posted during the year earlier period. The company currently operates eight OSB manufacturing facilities after closing two other facilities due to poor market conditions.
For the year, the OSB segment announced sales of $603 million, a 47% jump from 2009's results. The segment also posted an operating income of $26 million, a huge swing from the $65 million operating loss the company reported in 2009.
The siding segment, with which the company produces its SmartSide and CanExel brands, reported net sales of $103 million, an 11% increase from fourth quarter 2009. The segment also posted an improved operating income of $12 million, up from the $5 million operating income it posted a year ago. Siding also reported sales of $428 million for the year, up 13% from 2009.
The company's engineered wood products segment also posted solid fourth quarter numbers, including an 11% growth in sales to $49 million. The segment cut down on operating loss posting a 40% decrease to $6 million. For the year, the segment reported sales of $192 million and an operating loss of $21 million, an improvement over the $33 million operating loss the segment posted in 2009.
"Looking into 2011, we see housing starts improving by 15-20% and anticipate continued recovery of repair and remodeling activity," Frost said. "As an organization we will remain agile to respond to changes in the demand as the year progresses."