Louisiana-Pacific Corporation's (LP) net sales for the Q3 2022 decreased year-over-year by $166 million, or 16%. This included a decrease in OSB revenue of $212 million (or 35%, due to 39% lower prices and 5% higher volume) partially offset by Siding Solutions revenue growth of $83 million (or 27%, due to 16% higher prices and 9% higher volume).
Income from continuing operations for the Q3 2022 decreased year-over-year by $203 million (or 61%) to $129 million, or $1.74 per diluted share. This reflects a $281 million decrease in Adjusted EBITDA and a decrease in the provision for income tax of $67 million driven by lower pre-tax income in the current year.
Income from discontinued operations for the Q3 2022 increased year-over-year by $64 million to $97 million, or $1.31 per diluted share, primarily due to the gain on the sale of EWP, net of income taxes.
"Q3 of 2022 was another record quarter for LP's Siding segment, which saw 27% sales growth with 9% higher volume and 16% higher prices than last year," said Brad Southern, Chair and CEO of LP. "New residential construction appears to be slowing, and OSB prices have stabilized at a more historically normal level. However, demand for SmartSide siding remains strong, especially in repair & remodeling applications. LP is investing in long-term growth, including expanding the Houlton, Maine siding facility and plans to add new ExpertFinish capacity in Washington."
Net sales for the first nine months of 2022 increased year-over-year by $69 million, or 2%. This included Siding Solutions growth of $199 million (or 23%, primarily driven by 14% higher prices and 8% higher volumes). OSB revenue decreased by $112 million (14% lower OSB prices on 9% higher volumes).
Income from continuing operations attributed to LP for the first nine months of 2022 decreased year-over-year by $237 million (or 21%) to $898 million, or $11.16 per diluted share. The decrease primarily reflects a $311 million decrease in Adjusted EBITDA, $15 million of insurance recoveries, and a $66 million decrease in the provision for income tax driven by lower pre-tax income in the current year.
Income from discontinued operations for the first nine months of 2022 increased year-over-year by $149 million to $196 million, or $2.43 per diluted share, primarily due to the gain on the sale of EWP, net of income taxes, and the Q1 2022 sale of LP's 50% equity interest in two joint ventures that produce I-joists.
Louisiana-Pacific Corporation manufactures engineered wood building products.
