Louisiana-Pacific Corporation (LP), a manufacturer of high-performance building products, reported consolidated net sales of $814 million in the second quarter. That’s up 33 percent compared to the same quarter last year.
Siding net sales increased 30 percent to $415 million.
Other financial highlights from the company’s three months ended June 30.
- Oriented Strand Board (OSB) net sales increased by 53% to $351 million.
- Consolidated net sales increased by 33% to $814 million.
- Net income was $160 million, an increase of $181 million.
- Net income per diluted share was $2.23 per share, an increase of $2.51 per share.
- Cash provided by operating activities was $212 million, an increase of $124 million.
"LP’s siding business continued to gain share and outperform the underlying markets we serve, setting records for sales and EBITDA in the quarter and notching another record quarter for LP SmartSide ExpertFinish Trim & Siding,” said LP chairperson and CEO Brad Southern. “Consistent execution of LP’s strategy, growth in siding and structural solutions, and exceptional cost control and safety in siding and OSB delivered $229M in adjusted EBITDA in the second quarter.”
Siding revenue increased by $95 million (or 30%), due to 22% higher volumes and 6% higher prices. OSB revenue increased by $122 million (or 53%), driven by 35% higher prices and 13% higher volumes. Those gains were partially offset by decreases in the LP South America (LPSA) segment and other revenue of $6 million and $7 million, respectively.
Second Quarter 2024 Highlights
Net sales for the second quarter of 2024 increased year-over-year by $203 million (or 33%). Siding revenue increased by $95 million (or 30%), due to 22% higher volumes and 6% higher prices. OSB revenue increased by $122 million (or 53%), driven by 35% higher prices and 13% higher volumes. This was partially offset by decreases in the LP South America (LPSA) segment and Other revenue of $6 million and $7 million, respectively.
Net income increased year-over-year by $181 million to $160 million ($2.23 per diluted share). The increase primarily reflects a $135 million increase in Adjusted EBITDA, $48 million changes in business exit charges and credits, and $16 million of prior year settlements of OSB patent-related claims, partially offset by a $31 million increase in the provision for income taxes. The year-over-year increase in Adjusted EBITDA includes $73 million due to higher OSB selling prices, a $23 million increase from higher OSB sales volumes, and a $52 million impact from higher Siding net sales.
First Six Months of 2024 Highlights
Net sales for the first six months of 2024 increased year-over-year by $344 million (or 29%). Siding revenue increased by $125 million (or 19%), due to 6% higher prices and 13% higher volumes. OSB revenue increased by $246 million (or 59%), driven by 35% higher prices and 17% higher volumes. This was partially offset by decreases in the LPSA segment and Other revenue of $15 million and $12 million, respectively.
Net income increased year-over-year by $266 million to $267 million ($3.71 per diluted share). The increase primarily reflects a $252 million increase in Adjusted EBITDA, $48 million changes in business exit charges and credits, and $16 million of prior year settlements of OSB patent-related claims, partially offset by a $71 million increase in the provision for income taxes. The year-over-year increase in Adjusted EBITDA includes $135 million due to higher OSB selling prices, a $53 million increase from higher OSB sales volumes, and a $71 million impact from higher Siding net sales.
Get a more comprehensive snapshot of LP’s financial outlook, including future-looking forecasts and assessments, here.
Source: businesswire.com