Louisiana-Pacific Q4 Profit Down

(RTTNews) - Louisiana-Pacific Corp. (LPX) reported that its net income for the fourth quarter of 2018 was $17 million, or $0.12 per share, compared to $131 million or $0.89 per share, for the fourth quarter of 2017.

Net sales were $589 million, down from $711 million in the fourth quarter of 2017.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.26 per share and revenues of $616.51 million for the fourth-quarter. Analysts' estimates typically exclude special items.

LP's Board of Directors has authorized an additional stock repurchase plan under which LP intends to repurchase $600 million of its common stock. LP intends to initially enter into a $400 million accelerated share repurchase program and purchase the remaining $200 million over the balance of 2019.

Additionally, LP announced a 4 percent increase to its quarterly cash dividend to $0.135 per share and declared that the dividend will be paid on March 13, 2019, to shareholders of record on February 26, 2019. The company has also committed over time to returning to shareholders at least 50 percent of cash flow from operations in excess of capital expenditures to sustain our core business and grow Siding and value-add OSB.

LP expects capital expenditures for 2019 to be in the range of $150 million to $180 million.

LP maintained its long-term growth target of 12-14 percent on Smart Side sales growth but is guiding to the lower end of the range for 2019 based upon projected flat housing starts.