For the 3Q 2019, Louisiana-Pacific (LP) reported net sales of $603 million, down from $737 million in the 3Q 2018.
For the 3Q 2019, LP reported net income of $2 million, or $0.02 per diluted share, compared to $124 million, or $0.86 per diluted share, for the 3Q 2018. Non-GAAP adjusted income from continuing operations was $10 million, or $0.08 per diluted share.
Adjusted EBITDA for the 3Q 2019 was $49 million compared to $193 million in the 3Q 2018. Declines in OSB pricing in all North American operations had a negative impact on LP’s operating results of $119 million for the quarter ended September 30, 2019.
“Through the 3Q, despite starts below last year, our sales and operations teams executed very well,” said Brad Southern, LP CEO. “The Siding segment achieved a second consecutive record quarter for LP® SmartSide® Strand revenue while also setting a record quarter for safety. The OSB segment had its lowest cash cost of production in two years while balancing supply and demand in a difficult market. In the 3Q, we reduced finished goods inventory by $29 million, which contributed to excellent cash flow for the quarter, and reached $28 million in year to date efficiency savings. This means we remain ahead of pace to achieve our 2021 targets.”
For the first nine months of 2019, LP reported net sales of $1.8 billion, down from $2.2 billion in the same period of 2018.
LP reported net income of $46 million, or $0.36 per diluted share, compared to $378 million, or $2.59 per diluted share, for the same period of 2018. Adjusted EBITDA for the first nine months of 2019 was $160 million compared to $595 million in the same period of 2018.
LP is a leading manufacturer of engineered wood building products.
