Back to Headlines Print Version Buzz Up Stumble it Tweet it Facebook LinkedIn

Louisiana-Pacific 3Q Loss Narrows On Drop In Costs

DOW JONES NEWSWIRES

Louisiana-Pacific Corp. (LPX) third-quarter loss narrowed as the building- materials supplier continued its several-years-long streak of unprofitability.

But results topped analysts' expectations as performance improved from last year on cost-cutting and lower raw-materials prices

The industry has suffered in the housing market's collapse, although Louisiana-Pacific's cost-cutting efforts have offset some sales weakness. Last month, the Commerce Department said housing starts expanded in September, the third month of growth out of the last four.

Friday, rival Weyerhaeuser Co. (WY) reported break-even results as cost cutting offset a one-third sales decline.

"While the housing market continues to be very depressed, there were seasonal improvements in demand and a few encouraging signs that the housing market is beginning to recover," Louisiana-Pacific Chief Executive Rick Frost said Tuesday. He added the signs bode well for the 2010 building season.

The company posted a loss of $12.5 million, or 12 cents a share, compared with a year-earlier loss of $111.1 million, or $1.08 a share. Its loss from continuing operations narrowed to 12 cents from 98 cents.

Revenue decreased 21% to $308.8 million.

Analysts surveyed by Thomson Reuters predicted a 19-cent loss on revenue of $ 304 million.

Louisiana-Pacific's segment biggest segment--the unit for oriented strand board, a stronger and cheaper alternative to plywood--saw revenue shrink by one- third while its operating loss narrowed. Sales in the engineered-wood-products segment decreased one-quarter as it too posted a narrower loss. But profit in the siding segment more than tripled to $16.1 million because of increased market penetration and continued strength in repair and remodel markets.

Louisiana-Pacific shares closed Monday at $5.17 and weren't active premarket. The stock has more than tripled in 2009.

-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291; joan.solsman@ dowjones.com

  (END) Dow Jones Newswires
  11-03-090842ET
  Copyright (c) 2009 Dow Jones & Company, Inc.