Q2 2024 Louisiana-Pacific Corp Earnings Call Transcript
Key Points
- Louisiana-Pacific Corp (LPX) reported net sales of $814 million for Q2 2024, up 33% compared to the prior year.
- Siding sales grew by 30% due to a 22% increase in sales volume and a 6% rise in prices.
- The company more than doubled its adjusted EBITDA, operating cash flow, and adjusted earnings per share compared to Q2 2023.
- LPX's businesses operated safely, winning multiple industry safety awards and achieving an outstanding total incident rate of 0.6.
- The company returned $120 million to shareholders through dividends and share repurchases in the quarter.
- OSB prices fell significantly at the end of Q2, which will impact Q3 earnings.
- The company expects a seasonally weaker Q4, with a projected EBITDA drop from $100 million in Q3 to $70 million in Q4.
- There were inefficiencies in the production of new products like the smooth SmartSide, impacting margins.
- Increased selling and marketing expenses, with an additional $5 million year-over-year in Q2, are expected to continue.
- The repair and remodel market is currently constrained due to high interest rates and economic uncertainty, impacting demand.
Good day and thank you for standing by, and welcome to the Louisiana-Pacific Corporation earnings conference call. (Operator instructions) Please be advised that today's conference is being recorded. I would now like to turn the conference over to your speaker for today, Aaron Howald, Vice President, VP -- I'm sorry, Investor Relations and Business Development. Please go ahead.
Thank you, operator, and good morning, everyone. Thank you for joining us to discuss LP's results for the second quarter of 2024, as well as our updated outlook. My name is Aaron Howald, and I am LP's Vice President of Investor Relations and Business Development. With me this morning are Brad Southern LP's Chief Executive Officer; and Alan Haughie, LP's Chief Financial Officer.
After prepared remarks, we will take one round of questions during this morning's call, we will refer to a presentation that has been posted to LP's IR webpage, which is investor dot LP's corp.com. Our eight K filing earnings press release and
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