Adjusted loss from continuing operations of $16.3M vs. $19.4M in the same quarter a year ago.
Financial results continued to be negatively affected by poor Oriented Strand Board (OSB) pricing and less demand than anticipated due to anemic housing recovery.
Revenue by segment: Oriented Strand Board -5%; Siding +10%; Engineered Wood Products +13.9%; South America -14.3%.
Cash and cash equivalents were $580M as of September 30, 2014.
The company's Board of Directors authorized the repurchase up to $100M of common stock. The purchases will be made from time to time as market conditions warrant and subject to regulatory considerations.
Louisiana-Pacific (LPX) took an afternoon dive when CEO Curtis Stevens said in today's earnings call that it may face a legal fight with U.S. and Canadian regulators over its planned $1.1B purchase of Ainsworth Lumber (ANSBF).
The companies are at odds with the U.S. Justice Department and Canada's antitrust regulator over required divestitures to complete the transaction, according to Stevens.
Analysts are saying the regulators are most concerned the companies would have too much pricing power in western Canada because of their large market share in the region; TD Securities estimates the combined entity would control ~51% of oriented strand board production capacity in that area.
Louisiana-Pacific (LPX +10.7%) shares climb as investors absorb the company's $1.1B acquisition of Ainsworth Lumber. CEO Curt Stevens characterized the move as a play on the U.S. housing recovery and a chance to gain exposure to Asian markets.
Following the announcement, Deutsche upgraded LPX to Buy with a PT of $21 ($20 previous): "In a segment legendary for aggressive & destructive 'herd behavior,' consolidation places latent capacity in a smaller number of hands and reduces the risk of too many players restarting too much capacity too quickly ... On its own, this deal looks attractive: ANS has the best margins among peers."
Kilborn+ FollowFollowing- Unfollow|Send Message3 Nov 2011
Out of LPX swing trade at $6.42. So much for high beta.
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Louisiana-Pacific Corp along with its subsidiaries, is engaged in the manufacture of building products. It operates in four segments: North America Oriented Strand Board; Siding; Engineered Wood Products; and South America.