Louisiana-Pacific Corp (NYSE: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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