LP Building Solutions' net sales for the Q3 2023 decreased year-over-year by $124 million (or 15%). This included a decrease in Siding segment revenue of $50 million, or 13%, due to 16% lower volumes partially offset by 3% higher prices. OSB segment revenue decreased by $53 million, or 14%, driven by 19% lower volumes and 6% higher average selling prices. The remaining decrease in net sales was related to decreases in the South America segment and other revenue of $9 million and $13 million, respectively.
Income from continuing operations for the Q3 2023 decreased year-over-year by $11 million (or 9%) to $118 million, or $1.63 per diluted share. This primarily reflects a $10 million decrease in Adjusted EBITDA.
"As expected, Siding sales volume, price, and net sales all increased sequentially compared to the Q2, and we believe Siding inventories have normalized," said Brad Southern, Chair and CEO. "I want to thank all LP employees for their dedication and execution, and for the strong results they delivered in the third quarter."
First Nine Months of 2023 Highlights
Net sales for the first nine months of 2023 decreased year-over-year by $1,226 million (or 39%), including a decrease in OSB revenue of $1,051 million or 58%, due to 47% lower prices and 22% lower volumes. Siding segment revenue decreased by $87 million or 8%, due to 14% lower volumes offset by 6% higher prices. The remaining decrease in Net sales was related to decreases in the South America segment and other revenue of $38 million and $51 million, respectively.
Income attributed to LP from continuing operations for the first nine months of 2023 decreased year-over-year by $779 million (or 87%) to $119 million, or $1.65 per diluted share. The decrease primarily reflects a $940 million decrease in Adjusted EBITDA, $35 million of business exit charges (of which $31 million were non-cash charges) related to an off-site framing operation (Entekra Holdings, LLC), and a $16 million settlement of OSB patent-related claims, partially offset by a $218 million lower income tax provision.
As a leader in high-performance building solutions, Louisiana-Pacific Corporation (LP Building Solutions) manufactures engineered wood building products that meet the demands of builders, remodelers, and homeowners worldwide.
