Lp reports third quarter 2014 results
Nashville, tenn.--(business wire)--louisiana-pacific corporation (lp) (nyse: lpx) reported today results for the third quarter of 2014, which included the following: sales for the third quarter of $518 million were higher by 2 percent compared to the year ago quarter. loss from continuing operations was $18 million ($0.13 per diluted share). non-gaap adjusted loss from continuing operations was $16 million ($0.12 per diluted share). adjusted ebitda from continuing operations for the third quarter was $12 million compared to $65 million in the third quarter of 2013. cash and cash equivalents were $580 million as of september 30, 2014. “lp’s financial results continue to be negatively affected by poor osb pricing,” said curt stevens, ceo. “we have seen higher demand for most of our products but less than anticipated due to the anemic housing recovery.” for the third quarter of 2014, lp reported a loss from continuing operations of $18 million, or $0.13 per diluted share, as compared to income from continuing operations of $38 million, or $0.26 per diluted share for the third quarter of 2013. reductions in osb pricing accounted for $44 million decrease in both operating results and adjusted ebitda from continuing operations. year to date results for the nine months ended september 30, 2014, lp reported net sales of $1.5 billion compared to $1.6 billion in the first nine months of 2013. for the first nine months of 2014, lp reported loss from continuing operations of $30 million, or $0.22 per diluted share, compared to income of $197 million, or $1.36 per diluted share, for the same period in 2013. adjusted ebitda from continuing operations for the first nine months of 2014 was $61 million compared to $306 million for 2013. reductions in osb pricing accounted for $282 million decrease in both operating results and adjusted ebitda from continuing operations. oriented strand board (osb) segment lp’s osb segment manufactures and distributes osb structural panel products. the osb segment reported net sales for the third quarter of 2014 of $233 million, a 5 percent decrease from $245 million of net sales in the third quarter of 2013. for the third quarter of 2014, the osb segment reported an operating loss of $16 million compared to operating income of $30 million in the third quarter of 2013. for the third quarter, adjusted ebitda from continuing operations for this segment decreased by $46 million compared to the third quarter of 2013. for the third quarter, sales volumes were higher by 13 percent and sales prices decreased by 16 percent compared to the same period in 2013. the decrease in sales price accounted for approximately $44 million of the decrease in both operating results and adjusted ebitda from continuing operations. siding segment lp’s siding segment consists of smartside® siding as well as lp’s prefinished canexel® siding line. these products are used in new construction as well as in the repair and remodeling markets. the siding segment reported net sales of $163 million in the third quarter of 2014, an increase of 10 percent from $149 million in the year-ago third quarter. for the third quarter of 2014, the siding segment reported operating income of $21 million compared to $23 million in the year-ago quarter. for the third quarter, the siding segment reported $26 million in adjusted ebitda from continuing operations, a decrease of $1 million compared to the third quarter of 2013. engineered wood products segment (ewp) the ewp segment is comprised of lp solidstart® i-joist (ij), laminated veneer lumber and laminated strand lumber (lvl and lsl). these products are principally used in new construction. ewp sales in the third quarter of 2014 totaled $82 million, an increase from $72 million reported in the third quarter of 2013. operations were about breakeven for the third quarter of 2014 compared to a loss of $2.0 million in the third quarter of 2013. the ewp segment reported an improvement in adjusted ebitda from continuing operations of $3 million as compared to the same quarter in 2013. south america segment the south american segment consists of osb mills located in chile and brazil. south america sales in the third quarter of 2014 totaled $36 million, down from $42 million in the year-ago third quarter. for the third quarter of 2014, the south america segment reported a decrease in operating income of $5 million compared to the third quarter of 2013. south america segment reported $2 million in adjusted ebitda from continuing operations in the third quarter a reduction from $8 million in 2013. stock buyback on october 31, 2014, lp’s board of directors authorized lp to repurchase up to $100 million of the lp’s common stock. the purchases may be made from time to time as market conditions warrant and subject to regulatory considerations. company outlook “i expect housing to continue to increase but probably at a rate below the 20 percent pace in the current consensus forecasts,” continued stevens. “for lp, we will base our preliminary 2015 planning on 1.1 million housing starts,” he concluded. lp is a premier supplier of building materials, delivering innovative, high-quality commodity and specialty products to its retail, wholesale, homebuilding and industrial customers. visit lp’s web site at www.lpcorp.com for additional information on the company as well as reconciliation of non-gaap results. forward looking statements this news release contains statements concerning louisiana-pacific corporation's (lp) future results and performance that are forward-looking statements within the meaning of the private securities litigation reform act of 1995. the matters addressed in these statements are subject to a number of risks, uncertainties and assumptions that may cause actual results to differ materially from those projected, including, but not limited to, the effect of general economic conditions, including the level of interest rates and housing starts, market demand for the company's products, and prices for structural products; the availability, cost and other terms of capital; the efficiency and consequences of operations improvement initiatives and cash conservation measures; the effect of forestry, land use, environmental and other governmental regulations; the ability to obtain regulatory approvals; and the risk of losses from fires, floods and other natural disasters. these and other factors that could cause or contribute to actual results differing materially from those contemplated by such forward-looking statements are discussed in greater detail in the company's securities and exchange commission filings. louisiana-pacific corporation and subsidiaries financial and quarterly data (dollar amounts in millions, except per share amounts) (unaudited) consolidated statements of income louisiana-pacific corporation and subsidiaries (dollar amounts in millions, except per share amounts) (unaudited) condensed consolidated balance sheets louisiana-pacific corporation and subsidiaries (dollar amounts in millions) (unaudited) condensed consolidated cash flow statement louisiana-pacific corporation and subsidiaries (dollar amounts in millions) (unaudited) louisiana-pacific corporation and subsidiaries selected segment information (dollar amounts in millions) (unaudited) louisiana-pacific corporation and subsidiaries summary of production volumes (1) the following table sets forth production volumes for the quarter and nine months ended september 30, 2014 and 2013. (1) includes volumes produced by joint venture operations or under sales arrangements and sold to lp.
