Louisiana-Pacific Shares Drop After Clocking 16% Sales Decline In Q4

Louisiana-Pacific Corp LPX reported a fourth-quarter FY22 sales decline of 16% year-on-year to $705 million, beating the consensus of $695 million.

• Segment Revenues: Siding climbed 38% Y/Y to $385 million, Oriented Strand Board (OSB) fell 45% to $257 million, and South America decreased 18% to $51 million.
• The gross margin decreased by 1,849 bps to 18.2%.
• Income (loss) from continuing operations was $(12) million, down from $167 million a year ago.
• Adjusted EBITDA margin declined 1,911 bps to 14.2%.
• The company held $369 million in cash and equivalents. Cash provided by operating activities totaled $41 million.
• Adjusted EPS of $0.61 beat the analyst consensus of $0.54.
• Chair and CEO Brad Southern said, "Inflationary pressures continue to present headwinds, housing starts have softened, and OSB prices remain depressed after falling steeply in the fourth quarter."
• Outlook: Louisiana-Pacific sees Q1 Siding Solutions revenue decline of up to 5% Y/Y, OSB revenue decline by 20% Q/Q.
• It expects Q1 adjusted EBITDA of at least $35 million.
• The company expects FY22 capital expenditures of $400 million - $420 million.

Price Action: LPX shares are trading lower by 5.86% at $61.00 premarket on the last check Tuesday.

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