) reported adjusted earnings per share (EPS) of 41 cents from
continuing operations in the first quarter of 2013, in line with
the Zacks Consensus Estimate. Earnings also turned around
significantly from the prior-year quarter loss of 6 cents
attributable to improved pricing in the OSB segment and
increasing demand for LPX products.
Net sales in the quarter improved 48.6% year over year to $538
million, owing to volume and price increase at OSB. Revenues,
however, lagged the Zacks Consensus Estimate of $544 million by
Adjusted earnings before interest, taxes, depreciation and
amortization (EBITDA) from continuing operations were $121
million versus $21 million in the prior-year quarter, driven by a
significant increase in net sales.
Oriental Strand Board (OSB)
: Sales in the segment surged 92.6% to $287 million in the
quarter, driven by 82% increase in pricing. Improved housing
start also resulted in volume growth of 12% for the segment. The
segment recorded adjusted EBITDA of $109 million, much higher
than $11.0 million in the prior-year quarter, attributable to
Composite Wood Products/Siding:
Sales in the Siding segment improved 18% to $134 million
benefiting from improved pricing and SmartSide volumes in the
quarter. Driven by the improvement in housing start and
penetration in retail, repair and remodel markets and sheds,
SmartSide volumes improved 21% year over year. On the other hand,
CanExel siding volume was down 14%, owing to a bitter winter in
Eastern Canada. The segment recorded adjusted EBITDA of $25
million in the quarter, up 19% from the prior-year quarter.
Engineered Wood Products (EWP):
Engineered Wood Products sales increased 28.6% year over year to
$63 million in the quarter. Owing to improving housing demand,
volumes of I-Joists were up 35% and volumes of LVL and LSL were
up 13% year over year. Pricing was up 5% in I-Joists and remained
flat in LVL and LSL due to changes in product mix. The segment
reported breakeven EBITDA, flat year over year.
The segment manufactures OSB structural panels and siding
products in Chile and Brazil. Segment sales grew 6% to $45
million. Volumes in Chile and Brazil were flat year over year.
Driven by changes in foreign exchange rates, prices increased 7%
in Chile and 3% in Brazil. In terms of local currency, however,
prices improved 3% in Chile and 16% in Brazil. The segment's
adjusted EBITDA of $9 million was higher than $6 million in the
Louisiana-Pacific is optimistic about the housing market recovery
and believes that the company is well prepared to meet the
resulting extra demand.
Louisiana-Pacific carries a Zacks Rank #1 (Strong Buy).
Some other companies that are doing well and deserve a mention
Universal Forest Products Inc.
). Potlatch Corporation carries a Zacks Rank #1 whereas
Weyerhaeuser and Universal Forest Products carry a Zacks Rank #2
LOUISIANA PAC (LPX): Free Stock Analysis
POTLATCH CORP (PCH): Free Stock Analysis
UNIVL FST PRODS (UFPI): Free Stock Analysis
WEYERHAEUSER CO (WY): Free Stock Analysis
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