Louisiana-Pacific Corporation (LP) reported its financial results for the Q4 and year ended December 31, 2022. Net sales for the Q4 2022 decreased year-over-year by $130 million (or 16%) to $705 million, including a decrease in OSB prices of $120 million and a decline in OSB volume of $92 million (production curtailments and conversion of the Sagola OSB mill to siding production), partially offset by Siding Solutions revenue growth of $106 million (15% pricing, 20% volume).
Income from continuing operations for the Q4 2022 decreased year-over-year by $180 million to $(10) million or $(0.14) per diluted share, which reflects a $178 million drop in Adjusted EBITDA and non-cash pension settlement charges of $78 million, partially offset by $62 million lower income tax provisions.
"The Q4 was a strong end to another record year for the Siding business, with 38% sales growth compared to Q4 of last year," said Chair and CEO Brad Southern. "Inflationary pressures continue to present headwinds, housing starts have softened, and OSB prices remain depressed after falling steeply in the fourth quarter. However, LP has managed through challenges like these before. I am bullish about the long-term fundamentals for housing, and very confident that LP's strategy of growth specialization will continue to deliver value in 2023."
Full Year 2022
Net sales for 2022 decreased year-over-year by $61 million (or 2%), including a decrease in OSB prices of $400 million and a decrease in South America revenue of $24 million due to lower volumes and unfavorable currency movements, partially offset by Siding Solutions growth of $305 million (14% pricing, 11% volume) and an increase in OSB volume of $53 million.
Income from continuing operations decreased year-over-year by $418 million to $888 million, or $11.34 per diluted share, reflecting a $488 million drop in Adjusted EBITDA and non-cash pension settlement charges of $82 million, partially offset by $128 million lower income tax provisions.
Income from discontinued operations, net of income taxes, increased year-over-year by $126 million to $198 million, or $2.52 per diluted share, primarily due to the $118 million gain on the sale of EWP assets and a $39 million gain on the sale of the equity interests in two joint ventures that produced I-joists, partially offset by a $27 million increase in income tax provision.
As a leader in high-performance building solutions, Louisiana-Pacific Corporation manufactures engineered wood building products that meet the demands of builders, remodelers, and homeowners worldwide.
