Loading...
•
Jun 30, 2023
Louisiana-Pacific Q2 2023 Earnings Report
Reported a decrease in net sales and net income due to lower OSB prices and sales volumes, partially offset by higher siding prices.
Key Takeaways
LP Building Solutions reported a decrease in net sales by 46% to $611 million and a net loss of $20 million for Q2 2023, compared to a net income of $384 million in Q2 2022. The decrease was primarily driven by lower OSB prices and sales volumes, although siding prices increased. Adjusted EBITDA decreased to $93 million from $491 million year-over-year, and adjusted diluted EPS decreased to $0.55 per share from $4.19 per share.
Siding Solutions net sales decreased by 11% to $318 million due to lower volumes partially offset by higher prices.
Oriented Strand Board (OSB) net sales decreased by 66% to $229 million, primarily due to lower prices.
Consolidated net sales decreased by 46% to $611 million.
Income attributed to LP from continuing operations decreased by $367 million to $(20) million.
Louisiana-Pacific
Louisiana-Pacific
Louisiana-Pacific Revenue by Segment
Revenue by Segment
Siding Revenue
CapyFin.comOSB Revenue
CapyFin.comLPSA Revenue
CapyFin.com Forward Guidance
LP provided guidance for the full year 2023 and the third quarter of 2023 based on current plans and expectations.
Positive Outlook
- OSB third quarter 2023 revenue is expected to be sequentially higher than the second quarter 2023 by at least 50%, assuming that OSB prices published by Random Lengths remain unchanged from those published on July 28, 2023.
- Under these assumptions, third quarter 2023 Adjusted EBITDA is expected to be in the range of $160 million and $180 million.
Challenges Ahead
- Siding Solutions full year 2023 revenue is expected to decrease year-over-year by approximately 10%.
- Capital expenditures for 2023 are expected to be in the range of $290 million to $310 million, including $120 million to $130 million for mill conversions, $120 million to $125 million for sustaining maintenance, and $50 million to $55 million for other strategic growth projects.
Revenue & Expenses
Visualization of income flow from segment revenue to net income