Louisiana-Pacific Corporation (LP) reported its financial results for the three and six months ended June 30, 2022. Net sales for the 2Q 2022 decreased year-over-year by $38 million (or 3%). This included a $105 million (or 14%) decrease in OSB revenue (22% lower OSB prices on 10% higher volumes, primarily driven by the Peace Valley mill restart), offset partially by Siding Solutions revenue growth of $68 million (or 24%).
Income from continuing operations for the 2Q 2022 decreased year-over-year by $138 million (or 28%) to $348 million, or $4.28 per diluted share. This reflects a $174 million decrease in Adjusted EBITDA, $13 million of insurance recoveries received in 2022, and a decrease in the provision for income tax of $27 million driven by lower pre-tax income in the current year.
Income from discontinued operations for the 2Q 2022 increased year-over-year by $26 million to $37 million, or $0.46 per diluted share, primarily due to better realization of EWP prices.
"Including the EWP segment, the 2Q 2022 was another record sales quarter for LP," said LP Chair and CEO Brad Southern. "Despite ongoing raw material inflation and logistics challenges, LP's teams consistently executed our strategy to meet sustained customer demand. The new Siding mill in Houlton, Maine, is ramping up ahead of schedule, and contributed to Siding reaching a quarterly sales record of $356 million. With Structural Solutions mix exceeding 50% for the first six months of 2022, we believe LP is now the leading producer of specialty OSB, offering the widest array of specialty OSB building solutions. While we are monitoring inflation and interest rates closely, so far we see few signs of diminished demand for our products."
Net sales for the first six months of 2022 increased year-over-year by $235 million (or 11%). This included a $100 million (or 8%) increase in OSB revenue (11% higher volumes, primarily driven by the Peace Valley mill restart on 3% lower OSB prices) and Siding Solutions growth of $116 million (or 20%).
Income from continuing operations attributed to LP for the first six months of 2022 decreased year-over-year by $33 million (or 4%) to $770 million, or $9.19 per diluted share. The decrease primarily reflects a $30 million decrease in Adjusted EBITDA.
Income from discontinued operations for the first six months of 2022 increased year-over-year by $85 million to $99 million, or $1.18 per diluted share, primarily due to better realization of EWP prices and a $39 million gain associated with the sale of LP's 50% equity interest in two joint ventures that produce I-joists.
Louisiana-Pacific Corporation (LP Building Solutions) manufactures engineered wood building products.
