LP Reports Third Quarter 2003 Profits
LP Reports Third Quarter 2003 Profits
October 22, 2003
PORTLAND, Ore.--(BUSINESS WIRE)--Oct. 22, 2003--Louisiana-Pacific Corporation (LP) (NYSE:LPX) reported today third quarter net income of $124.5 million, or $1.17 per diluted share, on sales from continuing operations of $675 million. In the third quarter of 2002, LP's net income was $3.3 million, or $0.03 per diluted share, on sales from continuing operations of $415 million. For the first nine months of 2003, LP reported net income of $108.8 million, or $1.03 per diluted share, on sales from continuing operations of $1.6 billion compared to a net loss of $19.4 million, or $0.19 per diluted share, on sales from continuing operations of $1.2 billion for the first nine months of 2002.
For the third quarter of 2003, income from continuing operations was $109.9 million, or $1.03 per diluted share. In the third quarter of 2002, LP's income from continuing operations was $17.8 million, or $0.17 per diluted share. For the first nine months of 2003, income from continuing operations before cumulative effect of accounting principle was $120.8 million, or $1.14 per diluted share. For the first nine months of 2002, income from continuing operations before cumulative effect of accounting principle was $25.4 million, or $0.24 per diluted share.
"Strong demand for oriented strand board (OSB) panels had a tremendous impact on our results as pricing reached record levels. This demand has continued into the fourth quarter," said Mark A. Suwyn, LP's chairman & CEO. "With the added production of our Chambord, Quebec and Woodland, Maine mills, we set a new quarterly production record -- producing more than 1.45 billion square feet of OSB."
"We are wrapping up our divesture program. During the quarter, we sold more than $90 million of timberland and other assets. Also, we recently announced the sale of our remaining 463,000 acres of Texas timberland for approximately $290 million," Suwyn stated. "These funds will further enhance our liquidity and increase our financial flexibility."
Suwyn continued, "Once we complete the sale of the few remaining assets in the program, we expect to generate more than $750 million in total value (including cash, liquidation of working capital and reduction of liabilities) from this program for our shareholders."
At 9:00 a.m. EDT (6:00 a.m. PDT) today, LP will host a webcast on its third quarter 2003 financial results. To access the live webcast and accompanying presentation, visit www.lpcorp.com and go to the "Investor Relations" section from the main menu.
LP is a premier supplier of building materials, delivering innovative, high-quality commodity and specialty products to its retail, wholesale, homebuilding and industrial customers. Visit LP's web site at www.lpcorp.com for additional information on the company.
FORWARD-LOOKING STATEMENTS
This news release contains statements concerning Louisiana-Pacific Corporation's (LP) future results and performance that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The matters addressed in these statements are subject to a number of risks, uncertainties and assumptions that may cause actual results to differ materially from those projected, including, but not limited to, the effect of general economic conditions, including the level of interest rates and housing starts, market demand for the company's products, and prices for structural products; the effect of forestry, land use, environmental and other governmental regulations; the ability to obtain regulatory approvals; and the risk of losses from fires, floods and other natural disasters. These and other factors that could cause or contribute to actual results differing materially from those contemplated by such forward-looking statements are discussed in greater detail in the company's Securities and Exchange Commission filings.
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES
FINANCIAL AND QUARTERLY DATA
(Dollar amounts in millions, except per share amounts) (Unaudited)
Quarter Ended Nine Months Ended
------------------- -------------------
September 30, September 30,
------------------- -------------------
2003 2002 2003 2002
--------- --------- --------- ---------
Net sales $674.8 $415.3 $1,566.4 $1,236.8
Income (loss) before taxes,
minority interest, and equity
in earnings of unconsolidated
affiliates $197.0 $26.5 $219.4 $40.4
Income (loss) before taxes,
minority interest, and equity
in earnings of unconsolidated
affiliates excluding (gain)
loss on sale or impairment of
long-lived assets and other
operating credits and
charges, net $180.2 $(9.7) $186.3 $(0.4)
Income (loss) from continuing
operations before cumulative
effect of change in
accounting principle $109.9 $17.8 $120.8 $25.4
Net income (loss) $124.5 $3.3 $108.8 $(19.4)
Net income (loss) per share
- basic $1.18 $0.03 $1.04 $(0.19)
- diluted $1.17 $0.03 $1.03 $(0.19)
Average shares outstanding
(in millions)
Basic 105.1 104.6 105.1 104.6
Diluted 106.3 104.7 105.5 104.6
Calculation of income from continuing operations before taxes,
minority interest and equity in earnings of unconsolidated affiliate,
excluding gain or loss on sale or impairment of long-lived assets and
other operating credits and charges, net:
Income before taxes, minority interest,
and equity in earnings of
unconsolidated affiliates $197.0 $26.5 $219.4 $40.4
(Gain) loss on sale or impairment of
long-lived assets (22.5) (38.8) (64.2) (43.0)
Other operating credits and charges,
net 5.7 2.6 31.1 2.2
------- ------- ------- -------
Income (loss) before taxes, minority
interest, and equity in earnings of
unconsolidated affiliates excluding
(gain) loss on sale or impairment of
long-lived assets and other operating
credits and charges, net $180.2 $(9.7) $186.3 $(0.4)
======= ======= ======= =======
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES
(Dollar amounts in millions, except per share amounts) (Unaudited)
Quarter Ended Nine Months Ended
September 30, September 30,
------------------- -------------------
2003 2002 2003 2002
--------- --------- --------- ---------
Net Sales $674.8 $415.3 $1,566.4 $1,236.8
OPERATING COSTS AND EXPENSES
Cost of sales 403.8 344.1 1,116.7 983.5
Depreciation, amortization
and cost of timber
harvested 33.8 31.9 98.8 100.6
Selling and administrative 42.5 32.9 119.0 103.4
(Gain) loss on sale or
impairment of long lived
assets (22.5) (38.8) (64.2) (43.0)
Other operating credits and
charges, net 5.7 2.6 31.1 2.2
--------- --------- --------- ---------
Total operating costs and
expenses 463.3 372.7 1,301.4 1,146.7
--------- --------- --------- ---------
Income (loss) from operations 211.5 42.6 265.0 90.1
--------- --------- --------- ---------
NON-OPERATING INCOME (EXPENSE)
Foreign currency exchange
gain (loss) 0.9 (0.5) (0.8) (1.6)
Gain (loss) on early
extinguishment of debt (1.5) - (1.5) -
Interest expense (22.0) (23.9) (67.2) (72.1)
Interest income 8.1 8.3 23.9 24.0
--------- --------- --------- ---------
Total non-operating
income (expense) (14.5) (16.1) (45.6) (49.7)
--------- --------- --------- ---------
Income (loss) before taxes,
minority interest, and equity
in earnings of unconsolidated
affliates 197.0 26.5 219.4 40.4
Provision (benefit) for income
taxes 87.8 9.8 98.9 18.2
Equity in (income) loss of
unconsolidated affliates (0.7) (0.2) (0.3) (0.9)
Minority interest in net
income (loss) of consolidated
subsidiary - (0.9) - (2.3)
--------- --------- --------- ---------
Income (loss) from continuing
operations before cumulative
effect of change in
accounting principle 109.9 17.8 120.8 25.4
--------- --------- --------- ---------
DISCONTINUED OPERATIONS
Income (loss) from
discontinued operations 23.6 (23.5) (19.6) (66.3)
Provision (benefit) for income
taxes 9.0 (9.0) (7.5) (25.3)
--------- --------- --------- ---------
Income (loss) from
discontinued operations 14.6 (14.5) (12.1) (41.0)
--------- --------- --------- ---------
Income (loss) before
cumulative effect of change
in accounting principle 124.5 3.3 108.7 (15.6)
Cumulative effect of change in
accounting principle - 0.1 (3.8)
--------- --------- --------- ---------
Net income (loss) $124.5 $3.3 $108.8 $(19.4)
========= ========= ========= =========
Net income (loss) per share of
common stock:
Income (loss) from continuing
operations $1.04 $0.17 $1.15 $0.24
Income (loss) from
discontinued operations 0.14 (0.14) (0.11) (0.40)
Cumulative effect of change in
accounting principle - - - (0.03)
--------- --------- --------- ---------
Net Income (Loss) Per Share -
Basic $1.18 $0.03 $1.04 $(0.19)
========= ========= ========= =========
Net income (loss) per share of
common stock:
Income (loss) from continuing
operations $1.03 $0.17 $1.14 $0.24
Income (loss) from
discontinued operations 0.14 (0.14) (0.11) (0.40)
Cumulative effect of change in
accounting principle - - - (0.03)
--------- --------- --------- ---------
Net Income (Loss) Per Share -
Diluted $1.17 $0.03 $1.03 $(0.19)
========= ========= ========= =========
Average shares of common
stock outstanding (in
millions)
- Basic 105.1 104.6 105.1 104.6
========= ========= ========= =========
- Diluted 106.3 104.7 105.5 104.6
========= ========= ========= =========
CONDENSED CONSOLIDATED BALANCE SHEETS
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES
(Dollar amounts in millions) (Unaudited)
September 30, December 31,
2003 2002
-------------- --------------
ASSETS
Cash and cash equivalents $381.8 $137.3
Receivables, net 180.0 99.3
Inventories 158.1 163.5
Prepaid expenses 14.9 11.3
Deferred income taxes 33.6 38.6
Current assets of discontinued
operations 20.4 41.3
-------------- --------------
Total current assets 788.8 491.3
Timber and timberlands
Forest licenses 94.0 97.3
Deposits and other 13.4 15.1
Timber and timberlands held for sale 227.9 377.5
-------------- --------------
Total timber and timberlands 335.3 489.9
Property, plant and equipment 1,811.7 1,770.1
Accumulated depreciation (1,014.9) (928.6)
-------------- --------------
Net property, plant and equipment 796.8 841.5
Goodwill 276.7 276.7
Other intangible assets 26.9 29.9
Notes receivable from asset sales 403.9 403.9
Assets transferred under contractual
arrangement - 29.1
Restricted cash 108.1 46.8
Other assets 108.9 63.9
Long-term assets of discontinued
operations 41.2 100.2
-------------- --------------
Total assets $2,886.6 $2,773.2
============== ==============
LIABILITIES AND EQUITY
Current portion of long-term debt $8.1 $35.3
Accounts payable and accrued liabilities 238.6 211.1
Current portion of contingency reserves 30.0 20.0
-------------- --------------
Total current liabilities 276.7 266.4
Long-term debt, excluding current
portion:
Limited recourse notes payable 396.5 396.5
Other long-term debt 618.7 673.6
-------------- --------------
Total long-term debt,
excluding current portion 1,015.2 1,070.1
Contingency reserves, excluding current
portion 63.2 106.1
Liabilities transferred under
contractual arrangement - 15.3
Deferred income taxes and other 411.3 309.1
Commitments and contingencies
Stockholders' equity:
Common stock 116.9 116.9
Additional paid-in capital 442.2 446.8
Retained earnings 854.6 745.8
Treasury stock (212.2) (230.2)
Accumulated comprehensive loss (81.3) (73.1)
-------------- --------------
Total stockholders' equity 1,120.2 1,006.2
-------------- --------------
Total liabilities and equity $2,886.6 $2,773.2
============== ==============
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES
(Dollar amounts in millions) (Unaudited)
Nine Months Ended September 30,
---------------------------------
2003 2002
---------------- ----------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $108.8 $(19.4)
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depreciation, amortization and cost
of timber harvested 104.5 121.0
(Gain) loss on sale or impairment on
long-lived assets (46.5) (13.8)
Other operating charges and credits 37.7 7.2
Exchange loss on remeasurement 9.4 1.2
Increase in contingency reserves 7.9 3.8
Cash settlement of contingencies (43.7) (48.3)
Cumulative effect of change in
accounting principle (0.1) 6.3
Other adjustments (9.4) (10.2)
Increase in certain working capital
components and deferred taxes 58.7 33.9
---------------- ----------------
Net cash provided by operating
activities 227.3 81.7
---------------- ----------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Property, plant and equipment
additions (49.4) (25.3)
Proceeds from timber & timberland
sales 67.7 70.9
Proceeds from asset sales 31.9 32.5
(Increase) decrease in restricted
cash from asset sales 37.1 (47.8)
Return of capital from unconsolidated
subsidiary 102.8 -
Acquisition - (3.3)
Other investing activities, net 0.2 12.1
---------------- ----------------
Net cash provided by investing
activities 190.3 39.1
---------------- ----------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net payments under revolving credit
facilities (31.0) (40.0)
Long term borrowings 0.2 17.1
Repayment of long-term debt (53.9) (49.5)
Sale of common stock under equity
plans 9.2 -
Increase in restricted cash under
LOCs (99.4) -
Other financing activities, net 0.6 (9.8)
---------------- ----------------
Net cash used in financing
activities (174.3) (82.2)
---------------- ----------------
EFFECT OF EXCHANGE RATE ON CASH: 1.2 -
---------------- ----------------
Net increase in cash and cash
equivalents 244.5 38.6
Cash and cash equivalents at
beginning of period 137.3 61.6
---------------- ----------------
Cash and cash equivalents at end of
period $381.8 $100.2
================ ================
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES
SELECTED SEGMENT INFORMATION
(Dollar amounts in millions) (Unaudited)
Quarter Ended Nine Months Ended
September 30, September 30,
------------------- -------------------
2003 2002 2003 2002
--------- --------- --------- ---------
Net sales:
OSB $403.2 $173.0 $826.7 $556.6
Composite Wood Products 121.7 90.0 311.2 278.1
Plastic Building Products 56.3 47.0 156.5 120.8
Engineered Wood Products 82.2 81.6 219.6 202.9
Pulp - 0.6 - 1.3
Other 23.8 36.7 76.2 120.7
Less: Intersegment sales (12.4) (13.6) (23.8) (43.6)
--------- --------- --------- ---------
$674.8 $415.3 $1,566.4 $1,236.8
========= ========= ========= =========
Operating profit (loss):
OSB $197.8 $8.0 $248.7 $56.1
Composite Wood Products 23.3 9.6 43.5 38.0
Plastic Building Products 4.0 3.4 13.2 5.4
Engineered Wood Products (1.6) 2.6 (3.7) 6.9
Pulp - 1.1 - (2.2)
Other (1.7) 1.4 0.6 6.8
Other operating credits and
charges, net (5.7) (2.6) (31.1) (2.2)
Gain (loss) on sale or
impairment of long-lived
assets 22.5 38.8 64.2 43.0
General corporate and other
expenses, net (26.2) (20.2) (71.2) (63.3)
Gain (loss) on early
extinguishment of debt (1.5) - (1.5) -
Interest income (expense), net (13.9) (15.6) (43.3) (48.1)
--------- --------- --------- ---------
Income (loss) before taxes,
minority interest and equity
in earnings of unconsolidated
affliates $197.0 $26.5 $219.4 $40.4
========= ========= ========= =========
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES
NOTES TO FINANCIAL DATA
(Dollar amounts in millions, except per share amounts) (Unaudited)
1. Results of operations for interim periods are not necessarily
indicative of results to be expected for an entire year.
2. On May 8, 2002, LP announced that its board of directors had
approved a plan to sell selected businesses and assets in order to
significantly reduce LP's current debt. As revised in May 2003, the
plan involves divesting LP's plywood, industrial panels, timber and
timberlands, wholesale and distribution businesses and certain
lumber mills. In accordance with Statement of Financial Accounting
Standards (SFAS) No. 144, "Accounting for the Impairment or
Disposal of Long-Lived Assets," LP is required to account for the
businesses sold or anticipated to be sold within one year as
discontinued operations. Additionally, as a result of the planned
divestitures, LP was required to modify its segment reporting under
SFAS No. 131, "Disclosures about Segments of Enterprise and Related
Information."
3. Other Operating Charges and Credits, Net:
The major components of "Other operating charges and credits, net"
in the Condensed Consolidated Statements Of Income for the quarter
and nine months ended September 30 are reflected in the table below
and are described in the paragraphs following the tables:
Quarter Ended September 30, 2003 2002
------------------- -------------------
Pre-tax After tax Pre-tax After tax
--------- --------- --------- ---------
Additions to legal contingency
reserves $- $- $(2.0) $(1.2)
Loss on energy contract (5.0) (3.1) - -
Severance charges (0.7) (0.4) (0.6) (0.4)
--------- --------- --------- ---------
$(5.7) $(3.5) $(2.6) $(1.6)
========= ========= ========= =========
Nine Months Ended
September 30, 2003 2002
------------------- -------------------
Pre-tax After tax Pre-tax After tax
--------- --------- --------- ---------
Insurance recoveries $- $- $1.9 $1.2
Additions to product related
contingency reserves (6.7) (4.1) - -
Additions to environmental
contingency reserves (2.7) (1.7) - -
Additions to legal contingency
reserves - - (2.0) (1.2)
Loss on energy contract (5.0) (3.1) - -
Loss related to assets and
liabilities transferred
under contractual arrangement (16.0) (9.8) - -
Severance charges (0.7) (0.4) (2.1) (1.3)
--------- --------- --------- ---------
$(31.1) $(19.1) $(2.2) $(1.3)
========= ========= ========= =========
In the first quarter of 2002, LP recorded a net gain of $1.9
million ($1.2 million after taxes, or $0.01 per diluted share) from
business interruption insurance recoveries related to incidents at
facilities that occurred in past years.
In the second quarter of 2002, LP recorded a loss of $1.5 million
($0.9 million after tax, or $.01 per diluted share) on severance
accrued as part of the divestiture plan.
In the third quarter of 2002, LP recorded a loss of $0.6 million
($0.4 million after taxes, or $.00 per diluted share) on severance
recorded as part of the divesture plan and a loss of $2.0 million
($1.2 million after taxes, or $.01 per diluted share) due to
increase in litigation reserves.
In the second quarter of 2003, LP recorded a loss of $16.0 million
($9.8 million after taxes, or $0.09 per diluted share) related to
assets and liabilities transferred under contractual arrangement
due to the increase in a valuation allowance associated with notes
receivable from Samoa Pacific; a loss of $6.7 million ($4.1
million after taxes, or $0.04 per diluted share) from increases in
product related contingency reserves associated with the National
OSB class action settlement and a loss of $2.7 million ($1.7
million after taxes, or $0.01 per diluted share) associated with
environmental reserves at our Ketchikan Pulp Company operations.
In the third quarter of 2003, LP recorded a loss a loss of $5.0
million ($3.1 million after taxes, or $0.03 per diluted share)
related to an energy contract associated with Samoa Pacific and a
loss of $0.7 million ($0.4 million after taxes, or $.00 per
diluted share) on severance recorded as part of the divesture
plan.
4. Gain (Loss) on Sale or Impairment of Long-Lived Assets:
The major components of "Gain (loss) on sale or impairment of
long-lived assets" in the Condensed Consolidated Statements Of
Income for the quarter and nine months ended September 30 are
reflected in the tables below and are described in the paragraphs
following the tables:
Quarter Ended September 30, 2003 2002
------------------- -------------------
Pre-tax After tax Pre-tax After tax
--------- --------- --------- ---------
Gain on sales of timber $22.1 $13.5 $57.6 $35.3
Gain on other long-lived
assets 0.4 0.2 (0.5) (0.3)
Impairment charges on fixed
assets - - (18.3) (11.2)
--------- --------- --------- ---------
$22.5 $13.8 $38.8 $23.8
========= ========= ========= =========
Nine months ended
September 30, 2003 2002
------------------- -------------------
Pre-tax After tax Pre-tax After tax
--------- --------- --------- ---------
Gain on sales of timber $63.9 $39.2 $57.6 $35.3
Gain on other long-lived
assets 0.3 0.2 6.6 4.0
Impairment charges on fixed
assets - - (21.2) (13.0)
--------- --------- --------- ---------
$64.2 $39.4 $43.0 $26.4
========= ========= ========= =========
In the first quarter of 2002, LP recorded a loss of $1.6 million
($1.0 million after taxes, or $0.01 per diluted share) associated
with impairment charges on assets held.
In the second quarter of 2002, LP recorded a loss of $1.3 million
($0.8 million after taxes, or $0.01 per diluted share) associated
with impairment charges on assets held and a gain of $7.1 million
($4.3 million after taxes, or $0.04 per share) on the sale of
certain assets.
In the third quarter of 2002, LP recorded a loss of $18.3 million
($11.2 million, or $0.11 per diluted share) associated with an
impairment charge of $16.7 million of the purchase price of Forex
allocated to a timber license associated with an OSB project in
Quebec that LP announced cancellation of in September of 2002 as
well as other associated assets; a gain of $57.6 million ($35.3
million, or $0.34 per diluted share) on the sale of various
timberlands and a loss of $0.5 million on the sales of other
assets.
In the first quarter of 2003, LP recorded a gain of $12.5 million
($7.7 million after taxes, or $0.07 per diluted share) associated
with the sale of a portion of LP's timberlands as part of LP's
divestiture plan.
In the second quarter of 2003, LP recorded a gain of $29.3 million
($18.0 million after taxes, or $0.17 per diluted share) associated
with the sale of a portion of LP's timberlands as part of LP's
divestiture plan and a loss of $0.1 million ($0.1 million after
taxes, or $0.01 per diluted share) associated with the sale of
certain other assets.
In the third quarter of 2003, LP recorded a gain of $22.1 million
($13.5 million after taxes, or $0.13 per diluted share) associated
with the sale of a portion of LP's timberlands as part of LP's
divestiture plan and a gain of $0.4 million ($0.2 million after
taxes, or $0.00 per diluted share) associated with the sale of
certain other assets.
5. Income Taxes
Quarter Ended Nine months ended
September 30, September 30,
------------------- -------------------
2003 2002 2003 2002
--------- --------- --------- ---------
Continuing operations $197.7 $27.6 $219.7 $43.6
Discontinued operations 23.6 (23.5) (19.6) (66.3)
Cumulative effect of change in
accounting principle - - 0.2 (6.3)
--------- --------- --------- ---------
221.3 4.1 200.3 (29.0)
Total tax provision (benefit) 96.8 0.8 91.5 (9.6)
--------- --------- --------- ---------
Net income (loss) $124.5 $3.3 $108.8 $(19.4)
========= ========= ========= =========
Accounting standards require that the estimated effective income
tax rate (based upon estimated annual amounts of taxable income and
expense) by income component for the year be applied to year-to-
date income or loss at the end of each quarter. The primary
difference between the statutory rate (38%) on continuing
operations and the calculated rate relates to permanent difference
associated with certain inter-company debt which is denominated in
Canadian dollars. The components and associated estimated effective
income tax rates applied to each period are as follows:
Quarter Ended September 30,
-------------------------------------------
2003 2002
--------------------- ---------------------
Tax Tax Rate Tax Tax Rate
Provision Provision
---------- ---------- ---------- ----------
Continuing operations $87.8 44% $9.8 36%
Discontinued operations 9.0 38% (9.0) 38%
---------- ----------
$96.8 44% $0.8 20%
========== ==========
Nine Months Ended September 30,
-------------------------------------------
2003 2002
--------------------- ---------------------
Tax Tax Rate Tax Tax Rate
Provision Provision
---------- ---------- ---------- ----------
Continuing operations $98.9 45% $18.2 42%
Discontinued operations (7.5) 38% (25.3) 38%
Cumulative effect of
accounting change 0.1 38% (2.5) 40%
---------- ----------
$91.5 46% $(9.6) 33%
========== ==========
6. Cumulative Effect of Change in Accounting Principles:
LP adopted Statement of Financial Accounting Standards No. 143,
"Accounting for Asset Retirement Obligations," as of January 1,
2003. This statement addresses the retirement of long-lived assets
and the associated retirement costs. Under this statement, we will
record both an initial asset and a liability for the present value
of estimated costs of legal obligations associated with the
retirement of long-lived assets. These initial assets will be
depreciated over the expected useful life of the asset. Upon
adoption of this statement, we changed our accounting for landfill
closures, reforestation obligations associated with certain timber
licenses in Canada and other assets. Implementation of this
standard resulted in income of $0.2 million (or $0.1 million after
taxes) recorded as a "cumulative effect of change in accounting
principle" as of January 1, 2003.
LP adopted Statement of Financial Accounting Standards No. 142,
"Goodwill and other Intangible Assets," as of January 1, 2002. As
of January 1, 2002, LP discontinued amortization of goodwill. LP
has determined that $6.3 million of goodwill recorded in the
Engineered Wood Products business was impaired as of January 1,
2002, and this amount is recorded net of income tax effects as a
"cumulative effect of change in accounting principle" as of
January 1, 2002.
LOUISIANA-PACIFIC CORPORATION
SUMMARY OF PRODUCTION VOLUMES
Quarter Ended Nine Months Ended
September 30, September 30,
----------------- -----------------
2003 2002 2003 2002
-------- -------- -------- --------
Oriented strand board, million
square feet 3/8" basis 1,452 1,191 4,039 3,914
Wood-based siding, million square
feet 3/8" basis 183 203 599 592
Engineered I-Joist, million lineal
feet 24 24 66 65
Laminated veneer lumber (LVL),
thousand cubic feet 2,593 2,116 7,349 6,409
Composite Decking, thousand lineal
feet 6,943 6,660 23,387 15,109
Vinyl Siding, squares 759 708 2,061 1,913
CONTACT: Louisiana-Pacific Corporation David Dugan, 503-821-5285 (Media Relations) Bill Hebert, 503-821-5100 (Investor Relations)
SOURCE: Louisiana-Pacific Corporation