LouisianaPacific Corp. Reports Operating Results (10-Q)
Louisiana-pacific Corp. has a market cap of $2.14 billion; its shares were traded at around $16.43 with and P/S ratio of 1.6.
Highlight of Business Operations:OSB is sold as a commodity for which sales prices fluctuate daily based on market factors over which we have little or no control. We cannot predict whether the prices of our OSB products will remain at current levels or increase or decrease in the future. OSB prices (NC 7/16"), as reported by Random Lengths, were 70% higher for the third quarter of 2012 than for the same period in 2011 and 35% higher for the first nine months than for the same period in 2011.
Our net income attributable to LP for the third quarter of 2012 was $31.3 million, or $0.22 per diluted share, on sales of $467.8 million, compared to a net loss attributable to LP for the third quarter of 2011 of $65.6 million, or $0.49 per diluted share, on sales of $350.6 million. For the third quarter of 2012, income from continuing operations attributed to LP was $31.4 million, or $0.22 per diluted share, compared to a loss of $59.3 million, or $0.44 per diluted share, for the third quarter of 2011.
Our net loss attributable to LP for the first nine months of 2012 was $17.3 million, or $0.13 per diluted share, on sales of $1.3 billion, compared to a net loss attributable to LP for the first nine months quarter of 2011 of $124.1 million, or $0.94 per diluted share, on sales of $1.0 billion. For the first nine months of 2012, loss from continuing operations was $17.0 million, or $0.13 per diluted share, compared to loss from continuing operations of $115.3 million, or $0.87 per diluted share, for the first nine months of 2011.
For both the third quarter and first nine months of 2012 as compared to the same periods in the prior year, sales prices increased for our commodity OSB products as discussed in the OSB segment above. The increase in selling price favorably impacted operating results and adjusted EBITDA from continuing operations by approximately $4 million for the quarter and $6 million for the nine month period ended September 30, 2012 as compared to the corresponding periods of 2011.
sales in Brazil were higher due to improvements in the export markets and continued penetration in the local Brazil market. During the third quarter and nine months ended September 30, 2012, the increase in sales in Chile was supported by increased imports from LP's North American and Brazilian operations (primarily in the second quarter of 2012). These imports generally produce a lower margin due to freight costs and therefore have little impact on operating results. Sales price changes in the third quarter and the first nine months of 2012 as compared to the corresponding periods in 2011 are due to the impact of the fluctuations in the Chilean peso and Brazil real to the U.S. dollar as a majority of these sales are in local markets.
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