Anyone following OSB and plywood prices?
randomlengths.com
These high prices have enabled LPX to report blowout earnings:
Reuters
UPDATE - Louisiana-Pacific posts profit as wood prices rise
Thursday February 5, 12:20 pm ET
(Adds analyst quote and details from conference call; updates share price)
NEW YORK, Feb 5 (Reuters) - Louisiana-Pacific Corp. (NYSE:LPX - News) on Thursday posted a fourth-quarter profit on surging prices for wood panels used in homebuilding, sending its shares up nearly 7 percent.
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The Portland, Oregon, company reported earnings of $171.7 million, or $1.60 per share, compared with a year-earlier loss of $42.6 million, or 41 cents a share.
"They put up a great quarter," said Deutsche Bank analyst David Martin, who has a "hold" rating on the company's stock. "Volumes were extremely strong ... and, at the end of the day, prices in this business are nearing all-time record highs."
Louisiana-Pacific is the world's largest producer of oriented strand board. The structural panels made from wood chips and glue are used primarily in residential construction.
Prices for the board have recently hit historic highs on strong home construction growth, and were up over 150 percent in the fourth-quarter from last year.
Most forecasters see pricing remaining quite high into the fall and then trailing off late in the year. That scenario, Louisiana-Pacific said in a conference call, "seems to make sense."
Results for the most recent quarter include gains of 32 cents a share for the sale of some timberlands and 17 cents from insurance recoveries. They also include losses of 2 cents a share for impaired assets and severance, as well as a gain of a penny a share for the sale of other assets.
Analysts on average were expecting earnings of $1.10 a share.
Sales more than doubled to $733.8 million.
Louisiana-Pacific also said it will put in place a $250 million multiyear investment plan at its oriented strand board mills.
The company's shares were up $1.44 at $22.50 in midday New York Stock Exchange (News - Websites) trade. |
