) reported fourth-quarter 2013 adjusted loss per share of 5 cents
per share compared to the Zacks Consensus Estimate of earnings of
5 cents. The quarterly loss was also a massive drop from the
year-ago quarter's earnings of 18 cents.
Despite strong revenues, the bottom line underperformed due to a
massive $2 million loss from foreign exchange, lower pricing in
Oriental Strand Board (OSB) and lower earnings before interest,
taxes, depreciation and amortization (EBITDA).
Net sales in the quarter increased 6.0% year over year to $480
million driven by rise in volume and prices across all segments,
except the OSB segment. Revenues beat the Zacks Consensus
Estimate of $472 million by 1.7%.
Adjusted EBITDA from continuing operations declined 66.2% from
the prior-year quarter to $24 million owing to a rise in
operating costs and decline in OSB segment EBITDA due to lower
prices. The company recorded adjusted operating income of $129
The OSB segment manufactures and distributes OSB structural panel
products. Louisiana-Pacific had seven operating facilities but
had to close three due to difficult economic conditions.
Sales in the OSB segment decreased 5% year over year to $230
million in the fourth quarter of 2013, due to a 20% decline in
pricing, partially offset by a 17% increase in volume. Volumes
increased as the company resumed production at the Dawson Creek,
British Columbia mill and the Clarke County, Alabama mill. The
segment recorded adjusted EBITDA of $23 million, down 66.2% year
over year attributable to lower pricing.
Composite Wood Products/Siding:
The Composite Wood Products/Siding segment is engaged in the
production and marketing of siding products and related
accessories, hardboard siding and accessory products, and vinyl
siding products and accessories. These products are used for new
constructions as well as for repair and remodeling. It has three
categories: SmartSide and CanExel siding products and commodity
Sales in the Siding segment improved 19% year over year to $138
million gaining from the rise in pricing as well as volumes in
the SmartSide category. With continuous penetration in retail,
repair and remodel markets and sheds, SmartSide volumes improved
20% year over year. SmartSide average sales prices also increased
4% year over year.
On the other hand, CanExel siding prices remained flat year over
year. CanExel volumes were down 9% due to higher sales and
marketing expenses and increased cost of raw materials, license
and over lays.
The segment recorded adjusted EBITDA of $20 million in the
quarter, up 33.3% year over year, driven by higher sales
partially offset by lower OSB pricing.
Engineered Wood Products (EWP):
The EWP segment produces goods used in new constructions like
I-Joist (IJ), Laminated Veneer Lumber (LVL) and Laminated Strand
Engineered Wood Products sales increased 39% year over year to
$72 million in the quarter, driven mostly by higher volume growth
in IJ, LVL and LSL. Volumes of IJ increased 36% year over year
and 24% for both LVL and LSL, benefiting from higher LSL sales.
Pricing was up 8% in IJ and 3% in both LVL and LSL due to price
increases across all product lines offsetting the increased raw
material costs. The segment's adjusted EBITDA broke even,
compared to a negative adjusted EBITDA in the prior-year quarter,
as increased pricing offset higher raw material costs.
South America Segment:
The segment produces OSB structural panel and siding products in
Chile and Brazil.
Segment sales reduced 3% year over year to $41 million. Including
the changes in foreign exchange rates, prices decreased 6% year
over year in Chile but increased 2% in Brazil. In terms of local
currency, prices improved 6% in Chile and 2% in Brazil.
Full Year 2013
Louisiana-Pacific Corporation's fiscal 2013 adjusted earnings per
share from continuing operations of 90 cents missed the Zacks
Consensus Estimate of $1.02 by 11.8%. Full year earnings however
increased 157.1% from the year-ago earnings of 35 cents.
Net sales increased 23.5% year over year to $2.1 billion driven
by rise in volume and prices across all segments, except the OSB
Louisiana-Pacific currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks in the sector include
Universal Forest Products Inc.
) with a Zacks Rank #1 (Strong Buy) and
) with a Zacks Rank #2 (Buy).
LOUISIANA PAC (LPX): Free Stock Analysis
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