Nashville, Tenn.-based Louisiana-Pacific (LP) reported third quarter 2013 net income of $38.1 million, a 22% increase over third quarter 2012 net sales of $31.3 million. The manufacturer reported total sales in the quarter of $507 million, a 10% increase over year-ago sales of $462 million.
“OSB prices continued to decline in the quarter which hurt our earnings while siding and South America had better results than the same quarter last year,” says CEO Curt Stevens.
Net sales from LP’s OSB segment totaled $245 million in the third quarter, an increase from $227 million of net sales in the third quarter of 2012. The OSB segment reported operating income of $30 million in the quarter, compared to $49 million in the year-ago period. The company noted that while sales volumes in the quarter were up by 15%, prices fell 5%, compared to last year.
LP’s siding segment reported net sales of $149 million in the third quarter, an 11% increase over third quarter 2012 net sales of $134 million. Operating income for siding totaled $23 million compared to $20 million in the year-ago quarter.
Engineered wood products sales in the recent quarter came to $72 million, an increase from $62 million reported in the third quarter of 2012. Operating losses were $2 million for the third quarter of 2013 compared to $3 million in the third quarter of 2012.
The South American segment consists of OSB mills located in Chile and Brazil where sales in the quarter totaled $42 million, essentially flat from the year-ago third quarter. For the third quarter of 2013, the South America segment reported operating income of $5 million in the third quarter of the current year and 2012.
“We saw the pace of improvement in the housing market slow over the summer,” Stevens says. “However, the pace of permit activity, builder confidence and a slightly better economy should allow housing starts to grow in coming quarters.”