Raw material and freight prices rise for LP | Around the Region
Louisiana-Pacific Corporation (LP) (NYSE: LPX) released its financial results for the three and six months ended June 3.
Net sales from continuing operations fell 3% to $1,130 million, the company said. Siding Solutions net sales increased 24% to $356 million. LP manufactures siding in Two Harbors. OSB net sales decreased 14% to $673 million.
Income from continuing operations attributed to LP decreased $138 million to $348 million ($4.28 per diluted share).
Adjusted EBITDA was $491 million, down $174 million; adjusted EBITDA including discontinued operations was $535 million, down $149 million.
For the quarter, LP paid $471 million to repurchase 7.3 million of its common shares, leaving 77.2 million common shares outstanding.
LP paid $103 million for capital expenditures in the second quarter and $18 million in cash dividends. Subsequent to the end of the quarter and as of August 8, LP additionally paid $197 million to repurchase 3.4 million shares of common stock, leaving $329 million remaining under the preexisting stock repurchase authorization of 600 millions of dollars.
The combined effects of list price increases and product mix enhancements resulted in year-over-year increases in Siding Solutions’ average net selling price for the three and six months. In addition, the ramping up of the production of Houlton the installation was ahead of schedule and contributed nearly half of the year-over-year sales volume increase in the three months ended June 30th.
Adjusted EBITDA increased for the three months ended June 30threflecting price and volume growth largely offset by $29 million inflation of raw materials and freight and $7 million discretionary investments in support of future growth, including coatings plant conversions and sales and marketing costs. The decline in adjusted EBITDA of $8 million for the half reflects price and volume growth primarily offset by $55 million inflation of raw materials and freight and $19 million discretionary investments in support of future growth, including siding plant and sales and marketing costs, LP said in the report.