Building products company Louisiana-Pacific Corp. (LPX), Friday reported a swing to fourth-quarter profit, reflecting strong sales of its structural products as well as other businesses. Nonetheless, the company's earnings missed Street estimates, while sales exceeded expectations.
Moving forward, the company sees an improvement in business conditions.
The Nashville, Tennessee-based company reported fourth-quarter net income of $46 million or $0.32 per share, compared with net loss of $57 million or $0.42 per last year.
Excluding items, adjusted earnings from continuing operations for the quarter were $26 million or $0.18 per share. On average, 14 analysts polled by Thomson Reuters expected earnings of $0.22 per share for the quarter. Analysts' estimates typically exclude special items.
Net sales for the quarter jumped 47 percent to $458.7 million from $312 million in the prior year. Analysts on consensus estimated revenues of $443.79 million.
At OSB segment, which makes structural panel products, sales jumped 86 percent from last year. The company said that it has indefinitely curtailed three facilities at the segment due to market conditions, but has plans to restart one facility in early 2013.
Siding segment sales grew 25 percent, and its Engineered Wood Products Segment gained 11 percent.
"At the recent International Builders' Show, builders were very upbeat. Despite some potential challenges associated with credit availability, the federal deficit and job growth, they expressed a great deal of confidence that housing starts will continue to improve in 2013," said CEO Curt Stevens.
Louisiana-Pacific is trading at $19.91, down 2.82%, on a volume of 1.8 million shares on the NYSE.
by RTT Staff Writer
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