Louisiana-Pacific Corporation NYSE: LPX, commonly known as "LP", is a United States building materials manufacturer. It was founded in 1973 and is currently based in Nashville, Tennessee. Key products are oriented strand board, molding and other trimming materials, and wood siding, and other engineered wood products.
As of 2005, LP has 29 manufacturing plants in the U.S. and Canada, and one near Malalhue in Chile.
Louisiana-Pacific Corporation is principally engaged in the manufacturing of building products. The Company operates in three segments: Oriented Strand Board (OSB), Siding and Engineered Wood Products (EWP). The OSB segment manufactures and distributes OSB structural panel products. The Siding segment includes Smart Side siding products, Canexel siding products and other related products. The EWP segment includes laminated veneer lumber and laminated strand lumber, I-joists, plywood and other related products. As of December 31, 2009, the Company owned 21 facilities in the United States and Canada. It also owns two facilities in Chile and a 75% ownership interest in a Brazilian facility. It also operates three facilities through joint ventures, for which it is the exclusive provider of product distribution for North America. In addition, the Company participates in a joint venture operation that produces cellulose insulation. Its focus is on delivering commodity and specialty building products to retail, wholesale, home building and industrial customers. Its products are used primarily in new home construction, repair and remodeling, and manufactured housing.
The Company’s sales efforts are primarily focused on traditional two-step distribution, professional building products dealers, home centers, third-party wholesale buying groups and other retailers. The wholesale distribution channel includes a variety of specialized and broad-line wholesale distributors, and dealers focused primarily on the supply of products for use by professional builders and contractors. The retail distribution channel includes retail chains catering to the do-it-yourself (DIY), and repair and remodeling markets, as well as smaller independent retailers. During the year ended December 31, 2009, Louisiana-Pacific Corporation’s top 10 customers accounted for approximately 51% of its sales, with its two largest customers, Home Depot, Inc. accounting for 10.9% and Taiga Buildings Products, Ltd. accounting for 10.1% of its sales.
Oriented Strand Board
OSB is a product made from wood strands arranged in layers and bonded with resin. OSB serves many of the same uses as plywood, including roof decking, sidewall sheathing and floor underlayment. During 2009, the Company produced 2.7 billion square feet of OSB, including production from its joint venture OSB mill with Canfor Corporation.
Siding
The Company’s siding offerings fall into two categories: SmartSide siding products and related accessories, and Canexel siding and accessory products. Its SmartSide products consist of a line of wood-based sidings, trim, soffit and fascia. The Company’s Canexel siding and accessory product offerings include a number of mainly pre-finished lap, panel and trim products in a variety of patterns and textures.
Engineered Wood Products
The EWP segment manufactures and distributes laminated veneer lumber, I-joists, laminated strand lumber and other related products. This segment also includes the sale of I-joist and laminated veneer lumber products produced by its joint venture with AbitibiBowater or under a contract manufacturing arrangement. A plywood mill associated with the Company’s laminated veneer lumber operations in British Columbia is also included in this segment.
Other Products
The Company’s other products category includes its decorative molding, South American OSB operations (including its Chile and Brazil operations) and its joint venture that produces cellulose insulation. In addition, the Company’s other products category includes its remaining timber and timberlands, and other minor products, services and closed operations.
LP was founded in 1973 as part of a court-ordered monopoly breakup of Georgia-Pacific. LP was headed by company president Harry Merlo for the first 22 years, who was known for his flamboyant style and generous civic contributions. For its first 33 years, Louisiana-Pacific was based in Portland, Oregon; the LP headquarters were moved to Nashville in 2004.
During the 1990s, LP was the defendant in a major class-action lawsuit over its OSB siding product known as Inner Seal, manufactured from the early 1990s through 1996, due to its poor performance in humid environments.
Much of LP's growth in the 1990s came through acquisition of other building materials companies, such as ABTco in the eastern United States and Forex in eastern Canada.
Over the years, LP has been associated with professional sports in different manners. From 1979-82, the company owned the Portland Timbers soccer club in the defunct North American Soccer League (NASL). Today it owns the naming rights to LP Field, the stadium which houses the Tennessee Titans and Tennessee State University football teams in Nashville.
Louisiana Pacific operates several engineered wood siding mills that produce many 50yr limited warranty siding products. These include 4x8 panel sheeting, 5,6,8,10, and 12-inch (300 mm) lap siding, and many different sizes of engineered trim products. Siding products made by the siding group are different from OSB (oriented strand board) in that they include more of certain ingredients (blend is proprietary) to make the board stand up to mother nature better than a sub-floor product. Siding boards are also denser and more rigid than traditional OSB to help the board remain structurally sound throughout the term of its warranty.A new product has been added to the siding/specialty group in the past year and has been met with great enthusiasm by the building community; SmartSide vented soffit is on the market now and comes in a variety of sizes and thicknesses.
OVERALL
Beta: 2.68
Market Cap (Mil.): $1,150.99
Shares Outstanding (Mil.): 132.15
Annual Dividend: --
Yield (%): --
FINANCIALS
LPX Industry Sector
P/E (TTM): -- 9.94 24.21
EPS (TTM): 74.50 -- --
ROI: -1.14 0.93 17.92
ROE: -2.64 3.05 18.01
Name Age Since Current Position
Cook, E. Gary 66 2004 Independent Chairman of the Board
Frost, Richard 59 2004 Chief Executive Officer, Director
Stevens, Curtis 58 2007 Chief Financial Officer, Executive Vice President - Administration
Olszewski, Richard 54 2006 Executive Vice President - Specialty Products and Sales
Wagner, Jeffery 56 2006 Executive Vice President - OSB
Dunham, Archie 72 1996 Independent Director
Watson, Colin 69 2000 Independent Director
McCoy, Dustan 61 2002 Independent Director
Frierson, Daniel 69 2003 Independent Director
Landgraf, Kurt 64 2005 Independent Director
Gottung, Lizanne 54 2006 Independent Director
Weaver, John 65 2010 Independent Director
COMPANY ADDRESS
Louisiana Pacific Corp
414 Union Street
Suite 2000
Nashville TN 37219
As of 2005, LP has 29 manufacturing plants in the U.S. and Canada, and one near Malalhue in Chile.
Louisiana-Pacific Corporation is principally engaged in the manufacturing of building products. The Company operates in three segments: Oriented Strand Board (OSB), Siding and Engineered Wood Products (EWP). The OSB segment manufactures and distributes OSB structural panel products. The Siding segment includes Smart Side siding products, Canexel siding products and other related products. The EWP segment includes laminated veneer lumber and laminated strand lumber, I-joists, plywood and other related products. As of December 31, 2009, the Company owned 21 facilities in the United States and Canada. It also owns two facilities in Chile and a 75% ownership interest in a Brazilian facility. It also operates three facilities through joint ventures, for which it is the exclusive provider of product distribution for North America. In addition, the Company participates in a joint venture operation that produces cellulose insulation. Its focus is on delivering commodity and specialty building products to retail, wholesale, home building and industrial customers. Its products are used primarily in new home construction, repair and remodeling, and manufactured housing.
The Company’s sales efforts are primarily focused on traditional two-step distribution, professional building products dealers, home centers, third-party wholesale buying groups and other retailers. The wholesale distribution channel includes a variety of specialized and broad-line wholesale distributors, and dealers focused primarily on the supply of products for use by professional builders and contractors. The retail distribution channel includes retail chains catering to the do-it-yourself (DIY), and repair and remodeling markets, as well as smaller independent retailers. During the year ended December 31, 2009, Louisiana-Pacific Corporation’s top 10 customers accounted for approximately 51% of its sales, with its two largest customers, Home Depot, Inc. accounting for 10.9% and Taiga Buildings Products, Ltd. accounting for 10.1% of its sales.
Oriented Strand Board
OSB is a product made from wood strands arranged in layers and bonded with resin. OSB serves many of the same uses as plywood, including roof decking, sidewall sheathing and floor underlayment. During 2009, the Company produced 2.7 billion square feet of OSB, including production from its joint venture OSB mill with Canfor Corporation.
Siding
The Company’s siding offerings fall into two categories: SmartSide siding products and related accessories, and Canexel siding and accessory products. Its SmartSide products consist of a line of wood-based sidings, trim, soffit and fascia. The Company’s Canexel siding and accessory product offerings include a number of mainly pre-finished lap, panel and trim products in a variety of patterns and textures.
Engineered Wood Products
The EWP segment manufactures and distributes laminated veneer lumber, I-joists, laminated strand lumber and other related products. This segment also includes the sale of I-joist and laminated veneer lumber products produced by its joint venture with AbitibiBowater or under a contract manufacturing arrangement. A plywood mill associated with the Company’s laminated veneer lumber operations in British Columbia is also included in this segment.
Other Products
The Company’s other products category includes its decorative molding, South American OSB operations (including its Chile and Brazil operations) and its joint venture that produces cellulose insulation. In addition, the Company’s other products category includes its remaining timber and timberlands, and other minor products, services and closed operations.
LP was founded in 1973 as part of a court-ordered monopoly breakup of Georgia-Pacific. LP was headed by company president Harry Merlo for the first 22 years, who was known for his flamboyant style and generous civic contributions. For its first 33 years, Louisiana-Pacific was based in Portland, Oregon; the LP headquarters were moved to Nashville in 2004.
During the 1990s, LP was the defendant in a major class-action lawsuit over its OSB siding product known as Inner Seal, manufactured from the early 1990s through 1996, due to its poor performance in humid environments.
Much of LP's growth in the 1990s came through acquisition of other building materials companies, such as ABTco in the eastern United States and Forex in eastern Canada.
Over the years, LP has been associated with professional sports in different manners. From 1979-82, the company owned the Portland Timbers soccer club in the defunct North American Soccer League (NASL). Today it owns the naming rights to LP Field, the stadium which houses the Tennessee Titans and Tennessee State University football teams in Nashville.
Louisiana Pacific operates several engineered wood siding mills that produce many 50yr limited warranty siding products. These include 4x8 panel sheeting, 5,6,8,10, and 12-inch (300 mm) lap siding, and many different sizes of engineered trim products. Siding products made by the siding group are different from OSB (oriented strand board) in that they include more of certain ingredients (blend is proprietary) to make the board stand up to mother nature better than a sub-floor product. Siding boards are also denser and more rigid than traditional OSB to help the board remain structurally sound throughout the term of its warranty.A new product has been added to the siding/specialty group in the past year and has been met with great enthusiasm by the building community; SmartSide vented soffit is on the market now and comes in a variety of sizes and thicknesses.
OVERALL
Beta: 2.68
Market Cap (Mil.): $1,150.99
Shares Outstanding (Mil.): 132.15
Annual Dividend: --
Yield (%): --
FINANCIALS
LPX Industry Sector
P/E (TTM): -- 9.94 24.21
EPS (TTM): 74.50 -- --
ROI: -1.14 0.93 17.92
ROE: -2.64 3.05 18.01
Name Age Since Current Position
Cook, E. Gary 66 2004 Independent Chairman of the Board
Frost, Richard 59 2004 Chief Executive Officer, Director
Stevens, Curtis 58 2007 Chief Financial Officer, Executive Vice President - Administration
Olszewski, Richard 54 2006 Executive Vice President - Specialty Products and Sales
Wagner, Jeffery 56 2006 Executive Vice President - OSB
Dunham, Archie 72 1996 Independent Director
Watson, Colin 69 2000 Independent Director
McCoy, Dustan 61 2002 Independent Director
Frierson, Daniel 69 2003 Independent Director
Landgraf, Kurt 64 2005 Independent Director
Gottung, Lizanne 54 2006 Independent Director
Weaver, John 65 2010 Independent Director
COMPANY ADDRESS
Louisiana Pacific Corp
414 Union Street
Suite 2000
Nashville TN 37219