- Louisiana-Pacific (LPX -8.1%) reported Q2 revenue of $588M, a decline of 27.5% Y/Y. Sales by segments: Siding $238 (-34.3% Y/Y); OSB $199M (-48.6% Y/Y); EWP $107M (-5.03% Y/Y); South America $40M (-11.1% Y/Y); and others $5M (+66.7% Y/Y).
- Q2 Gross margin fell by 1,892 bps to 13.3%; and operating margin fell by 2,260 bps to 3.9%.
- Declines in OSB pricing in all North American operations had a negative impact on LP's operating results of $166M for the quarter.
- Adj. EBITDA was $53M (-78.1% Y/Y); and margin declined by 2,083 bps to 9%.
- SmartSide Strand sales increased 3% Y/Y. Overall OSB commodity price realization dropped 49% Y/Y.
- Net cash provided by operating activities for the quarter was $54M, compared to $237M a year ago.
- Company increased the capacity of the revolving credit facility to $350M and extended the maturity date to June 28, 2024.
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FY19 Guidance: Capex in range of $160M to $170M; and lowered SmartSide Strand sales growth target to 10% and its long-term growth target to 10%-12%.
- Previously: Louisiana-Pacific EPS misses by $0.12, misses on revenue (Aug. 6)