Nashville, TN, February 6, 2006--Louisiana-Pacific said its fourth-quarter earnings surged sixfold on higher sales, cost controls and a lower tax rate.
The company's profit jumped to $85.2 million, or $0.80 per share, from $13.7 million, or $0.12 per share, a year ago. Excluding certain items, the company's earnings from continuing operations rose to $92.8 million, or $0.87 per share, from $23.1 million, or $0.21 per share.
Revenue rose 11 percent to $624.2 million from $564.4 million. Oriented strand board products, the company's major revenue source, posted a 21 percent increase to $387.4 million. Meanwhile, sales of siding, engineered wood products and other items all decreased.
Analysts polled by Thomson Financial were looking for adjusted earnings of 65 cents per share, but expected larger sales growth to $629.4 million in revenue.
Louisiana-Pacific's expenses rose more modestly than revenue, with cost of sales increasing just 4 percent to $448.5 million and selling and administrative expenses rising 3 percent to $40.8. Certain other non-operating costs decreased compared with a year ago.
In addition, the company benefited from a much smaller provision for income taxes -- $12.9 million instead of $36.7 million, reflecting a sharply lower tax rate.
For the year, Louisiana-Pacific earned $455.5 million, or $4.15 per share, on sales of $2.6 billion.
