Louisiana-Pacific Corporation (LP) posted net income of $94 million for the second quarter of 2013, on total sales of $573 million for the quarter, a 34% increase over year-ago sales of $428 million.
“This was another good quarter for LP as the U.S. housing market continues to recover,” CEO Curt Stevens said in a statement. “While OSB prices moderated during the second quarter, this segment showed good earnings. Strong demand in siding and South America also added to our results.”
The $94 million in second quarter net income demonstrated a marked improvement over 2012 same quarter net losses of $37.3 million. The company said second quarter 2013 results included a gain on acquisition of $36 million.
Net sales in LP’s OSB business jumped 57% to $306 million in the quarter compared to $195 million in the year-ago period. Also in the quarter, the Nashville, Tenn.-based manufacturer logged operating income of $95 million versus $17 million in the second quarter of 2012. LP said OSB sales volumes rose by 2% while sales prices increased by 59% over the 2012 period.
The company’s siding business had net sales of $153 million in the quarter, an 11 % increase over 2012 second quarter net sales of $137 million. Second quarter operating income for the siding segment totaled $27 million compared to $19 million in the year-ago quarter.
Engineered wood products produced quarterly sales of $61 million, an increase from $52 million reported a year ago. Operating losses were $5 million for the second quarter of 2013 compared to $3 million in the second quarter of 2012.
LP’s South American OSB mills in Chile and Brazil produced $44 million in second quarter 2013 sales, a 4% increase over year-ago sales of $43 million. South American Operating income for the quarter totaled $6 million compared to $4 million reported a year ago.
“Housing starts appear to have been constrained by weather, labor and financing issues in the second quarter. We will continue to be agile in our operations as the weather improves and builders address these issues. The consensus projection for housing starts for this year is a 25 percent increase over 2012, with starts projected to increase at least another 25 percent in 2014. We will be ready to respond,” Stevens said.