While still waiting for housing starts to improve, Louisiana-Pacific posted strong sales gains for the year and the quarter, while overseeing growth in engineered wood products, siding and OSB.
Nashville, Tenn.-based LP posted fourth-quarter sales of $316 million, up 14% from the same quarter last year. However, losses from continuing operations were $2 million, compared with a $47 million loss in the prior-year quarter.
For the full year ended Dec. 31, sales were up 30% to $1.4 billion. Losses for the year were $32 million, compared with a loss of $117 million in 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. “While we have not yet seen much improvement in housing starts, we have been able to take advantage of the improving repair and remodel market, international opportunities and strengthening siding sales.”
Breaking down its various segments, the company reported:
• Engineered wood products segment sales in the fourth quarter of 2010 totaled $49 million, up 11%;
• The siding segment reported net sales of $103 million in the fourth quarter of 2010, an increase of 18% from $87 million in the year-ago fourth quarter; and
• The OSB segment reported net sales for the fourth quarter of 2010 of $127 million, up 11% compared with $114 million of net sales in the fourth quarter of 2009.
“Looking into 2011, we see housing starts improving by 15% to 20% and anticipate continued recovery of repair and remodeling activity," Frost added. "As an organization, we will remain agile to respond to changes in the demand as the year progresses.”