Building materials supplier Louisiana-Pacific Corp. (LPX) said Friday after the markets closed that its fourth quarter loss widened sharply from last year, due to lower sales and hefty goodwill impairment charges. The company's loss per share from continuing operations, excluding items, was less than analysts expected.
The Nashville, Tennessee-based company reported a net loss of $340.5 million or $3.31 per share, compared to a net loss of $51.5 million or $0.50 per share for the year-ago quarter.
Net loss from continuing operations for the fourth quarter was $339.4 million or $3.30 per share, compared to a net loss from continuing operations of $49.1 million or $0.48 per share in the prior year quarter.
The latest quarter results include goodwill impairment charges of $2.66 per share, other than temporary impairment of investments of $0.16 per share and other operating credits and charges of $0.13 per share. The year-ago quarter results included other than temporary impairment of investments of $0.12 per share and other operating charges and credits and other items of $0.06 per share.
Excluding items, adjusted loss from continuing operations for the fourth quarter was $35.6 million or $0.35 per share, compared to an adjusted loss of $29.8 million or $0.29 per share in the fourth quarter of last year.
On average, 15 analysts polled by Thomson Reuters expected the company to report a loss of $0.46 per share for the fourth quarter. Analysts' estimates typically exclude special items.
Net sales for the fourth quarter fell 33% to $250.2 million from $376.6 million in the same quarter last year, mainly as a results of dramatically reduced US housing starts that dropped 34% from the year earlier levels due to weakness in home building. Ten analysts had a consensus revenue estimate of $272.79 million for the fourth quarter.
"The decline in home building and related activity experienced throughout the first nine months of the year accelerated during the fourth quarter of 2008, driven by the ongoing credit crisis and deteriorating global economic conditions," said Louisiana-Pacific Chief Executive Officer Rick Frost.
Louisiana-Pacific's OSB segment, which manufactures and distributes OSB structural panel products, reported net sales for the fourth quarter of $109.0 million, down 42% from $186.5 million a year earlier. Sales volumes in the quarter were down 48% compared to last year with sales price increasing by 6%.
LP's Siding segment, which consists of LP SmartSide siding as well as prefinished LP CanExel siding line that are used in new construction as well as in the repair and remodeling markets, reported fourth quarter net sales of $76.1 million, down 17% from $91.6 million in the year-ago quarter.
The company's Engineered Wood Products segment, which is comprised of I-Joist, Laminated Veneer Lumber and Laminated Strand Lumber, reported fourth quarter sales of $45.3 million, down 37% from $71.9 million in the prior year quarter.
For the full year 2008, the company reported a net loss of $578.8 million or $5.62 per share, compared to a net loss of $179.9 million or $1.73 per share for the full year 2007.
Loss from continuing operations for the full year 2008 was $565.1 million or $5.49 per share, compared to a loss from continuing operations of $155.3 million or $1.50 per share in 2007.
Adjusted loss from continuing operations for the full year 2008 was $158.0 million or $1.54 per share, compared to an adjusted loss of $115.3 million or $1.11 per share in the previous year.
Net sales for the full year 2008 fell to $1.38 billion from $1.71 billion the prior year.
Analysts expected the company to report a loss of $1.65 per share on revenue of $1.39 billion for the full year 2008.Looking forward, Frost said, "As we had anticipated, 2008 proved to be a very challenging year for our businesses and we expect 2009 to also be difficult."
Louisiana-Pacific shares closed Friday's regular trading session at $1.62, down 6 cents or 3.57% but gained 3 cents or 1.98% in after hours trading.
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