United States of America
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report: July 29, 2008
Commission File Number 1-7107
LOUISIANA-PACIFIC CORPORATION
(Exact name of registrant as specified in its charter)
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DELAWARE |
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1-7107 |
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93-0609074 |
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(State or other jurisdiction of |
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Commission File |
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(IRS Employer Identification No.) |
414 Union Street, Suite 2000, Nashville, TN 37219
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (615) 986-5600
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition.
The information in this Form 8-K and Exhibit 99.1, attached hereto, is furnished in accordance with SEC Release No. 33-8216. The information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.
On July 29, 2008 Louisiana - Pacific Corporation issued a press release announcing financial results for the fiscal quarter ended June 30, 2008, a copy of which is attached hereto as Exhibit 99.1.
Item 9.01 Financial Statements, Pro Forma Financial Statements and Exhibits.
(d) Exhibits.
99.1 Press release issued by Louisiana - Pacific Corporation on July 29, 2008 regarding First Quarter ended June 30, 2008 results.
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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LOUISIANA-PACIFIC CORPORATION |
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By: |
/s/ CURTIS M. STEVENS |
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Curtis M. Stevens |
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Executive Vice President and Chief |
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Financial Officer |
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(Principal Financial Officer) |
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Date: July 29, 2008 |
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3
Exhibit 99.1
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NEWS RELEASE |
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Release No. 117-07-07 |
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414 Union Street, Suite 2000 |
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Contact: |
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Nashville, TN 37219-1711 |
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Mary Cohn (Media Relations) |
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615.986.5600 |
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615-986-5886 |
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Fax: 615.986.5666 |
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Mike Kinney / Becky Barckley (Investor Relations) |
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615-986-5600 |
FOR RELEASE AT 8:00 A.M. (ET) TUESDAY, JULY 29, 2008
LP Reports Second Quarter 2008 Results
Louisiana-Pacific Corporation (LP) (NYSE: LPX) reported today a second quarter net loss of $81 million, or $0.79 per diluted share, on sales from continuing operations of $387 million. In the second quarter of 2007, LP’s net loss was $23 million, or $0.22 per diluted share, on sales from continuing operations of $461 million. For the first six months of 2008, LP reported a net loss of $127 million, or $1.24 per diluted share, on sales from continuing operations of $736 million compared to net loss of $61 million, or $0.58 per diluted share, on sales from continuing operations of $856 million for the first six months of 2007.
For the second quarter of 2008, loss from continuing operations was $79 million, or $0.77 per diluted share. In the second quarter of 2007, LP’s loss from continuing operations was $16 million, or $0.15 per diluted share. For the first six months 2008, loss from continuing operations was $125 million, or $1.22 per diluted share. For the first six months of 2007, income from continuing operations was $52 million, or $0.50 per diluted share. Results for the first six months of 2008 included other net operating charges totaling $66.1 million ($40.5 million after tax, or $0.39 per diluted share) and other than temporary impairment on investments of $2.5 million ($1.5 million after tax, or $0.01 per diluted share). Results for the first six months of 2007 include other net operating credits totaling $19.2 million ($11.8 million
1
after tax, or $0.11 per diluted share) and loss on impairment of long-lived assets of $5.2 million ($3.2 million after tax, or $0.03 per diluted share).
“Ongoing turmoil in the market caused demand for most of our products significantly lower than the same quarter last year, with new housing starts declining more than 30%,” said Chief Executive Officer Rick Frost. “In response, LP took significant curtailments in the quarter to match supply with orders. These shutdowns, coupled with significantly higher raw materials costs, put downward pressure on our margins. We did see improved operating results compared to the first quarter due to seasonal activity but these were more than offset by several non-operating charges, the largest of which was the settlements reached in the OSB antitrust case,” Frost concluded.
At 11:00 a.m. ET (8:00 a.m. PT) today, LP will host a webcast on its second quarter 2008 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.
2
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES
FINANCIAL AND QUARTERLY DATA
(Dollar amounts in millions, except per share amounts) (Unaudited)
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Quarter Ended |
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Six Months Ended |
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June 30, |
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June 30, |
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2008 |
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2007 |
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2008 |
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2007 |
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Net sales |
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$ |
387.0 |
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$ |
461.2 |
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$ |
736.4 |
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$ |
855.8 |
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Income (loss) before income taxes and equity in earnings of unconsolidated affiliates |
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$ |
(133.0 |
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$ |
(21.6 |
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$ |
(208.5 |
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$ |
(85.6 |
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Income (loss) from continuing operations excluding (gain) loss on sale or impairment of long-lived assets and other operating credits and charges, net |
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$ |
(35.3 |
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$ |
(27.6 |
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$ |
(83.4 |
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$ |
(60.2 |
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Income (loss) from continuing operations |
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$ |
(79.4 |
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$ |
(15.6 |
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$ |
(125.3 |
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$ |
(51.6 |
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Net income (loss) |
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$ |
(80.8 |
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$ |
(23.3 |
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$ |
(127.2 |
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$ |
(60.6 |
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Net income (loss) per share - basic and diluted |
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$ |
(0.79 |
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$ |
(0.22 |
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$ |
(1.24 |
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$ |
(0.58 |
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Average shares outstanding (in millions) |
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Basic and diluted |
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102.9 |
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104.2 |
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102.9 |
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104.1 |
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Calculation of income (loss) from continuing operations excluding (gain) loss on sale or impairment of long-lived assets and other operating credits and charges, net:
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Income (loss) from continuing operations |
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$ |
(79.4 |
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$ |
(15.6 |
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$ |
(125.3 |
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$ |
(51.6 |
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Other than temporary investment impairment |
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1.7 |
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— |
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2.5 |
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— |
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(Gain) loss on sale or impairment of long-lived assets |
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0.1 |
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(0.3 |
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(0.3 |
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5.2 |
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Other operating credits and charges, net |
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70.1 |
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(19.2 |
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66.1 |
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(19.2 |
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71.9 |
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(19.5 |
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68.3 |
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(14.0 |
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Provision (benefit) for income taxes on above items |
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(27.8 |
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7.5 |
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(26.4 |
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5.4 |
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44.1 |
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(12.0 |
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41.9 |
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(8.6 |
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$ |
(35.3 |
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$ |
(27.6 |
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$ |
(83.4 |
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$ |
(60.2 |
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Per share - basic |
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$ |
(0.34 |
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$ |
(0.26 |
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$ |
(0.81 |
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$ |
(0.58 |
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Per share - diluted |
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$ |
(0.34 |
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$ |
(0.26 |
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$ |
(0.81 |
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$ |
(0.58 |
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3
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES
(Dollar amounts in millions, except per share amounts) (Unaudited)
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Quarter Ended June 30, |
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Six Months Ended June 30, |
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2008 |
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2007 |
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2008 |
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2007 |
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Net sales |
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$ |
387.0 |
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$ |
461.2 |
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$ |
736.4 |
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$ |
855.8 |
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Operating costs and expenses: |
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Cost of sales |
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375.0 |
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437.6 |
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747.8 |
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829.3 |
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Depreciation, amortization and cost of timber harvested |
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26.8 |
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27.4 |
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53.4 |
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55.9 |
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Selling and administrative |
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39.1 |
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38.3 |
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79.2 |
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78.5 |
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(Gain) loss on sale or impairment of long-lived assets |
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0.1 |
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(0.3 |
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(0.3 |
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5.2 |
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Other operating credits and charges, net |
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70.1 |
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(19.2 |
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66.1 |
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(19.2 |
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Total operating costs and expenses |
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511.1 |
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483.8 |
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946.2 |
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949.7 |
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Income (loss) from operations |
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(124.1 |
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(22.6 |
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(209.8 |
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(93.9 |
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Non-operating income (expense): |
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Foreign currency exchange gain (loss) |
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(5.1 |
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(12.7 |
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4.3 |
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(15.5 |
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Other than temporary investment impairment |
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(1.7 |
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— |
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(2.5 |
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— |
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Interest expense, net of capitalized interest |
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(12.7 |
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(9.7 |
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(23.9 |
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(20.0 |
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Investment income |
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10.6 |
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23.4 |
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23.4 |
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43.8 |
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Total non-operating income (expense) |
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(8.9 |
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1.0 |
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1.3 |
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8.3 |
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Income (loss) before taxes and equity in earnings of unconsolidated affliates |
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(133.0 |
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(21.6 |
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(208.5 |
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(85.6 |
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Provision (benefit) for income taxes |
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(56.8 |
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(10.9 |
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(92.7 |
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(42.2 |
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Equity in loss (earnings) of unconsolidated affliates |
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3.2 |
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4.9 |
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9.5 |
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8.2 |
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Income (loss) from continuing operations |
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(79.4 |
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(15.6 |
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(125.3 |
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(51.6 |
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Discontinued operations: |
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Loss from discontinued operations before income taxes |
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(2.3 |
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(12.6 |
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(3.1 |
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(14.8 |
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Income tax benefit |
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(0.9 |
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(4.9 |
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(1.2 |
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(5.8 |
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Loss from discontinued operations |
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(1.4 |
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(7.7 |
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(1.9 |
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(9.0 |
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Net income (loss) |
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$ |
(80.8 |
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$ |
(23.3 |
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$ |
(127.2 |
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$ |
(60.6 |
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Net income (loss) per share of common stock (basic): |
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Income (loss) from continuing operations |
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$ |
(0.77 |
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$ |
(0.15 |
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$ |
(1.22 |
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$ |
(0.50 |
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Loss from discontinued operations |
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(0.02 |
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(0.07 |
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(0.02 |
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(0.08 |
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Net income (loss) per share - basic |
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$ |
(0.79 |
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$ |
(0.22 |
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$ |
(1.24 |
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$ |
(0.58 |
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Net income (loss) per share of common stock (diluted): |
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Income (loss) from continuing operations |
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$ |
(0.77 |
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$ |
(0.15 |
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$ |
(1.22 |
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$ |
(0.50 |
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Loss from discontinued operations |
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(0.02 |
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(0.07 |
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(0.02 |
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(0.08 |
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Net income (loss) per share - diluted |
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$ |
(0.79 |
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$ |
(0.22 |
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$ |
(1.24 |
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$ |
(0.58 |
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Average shares of stock outstanding - basic |
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102.9 |
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104.2 |
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102.9 |
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104.1 |
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Average shares of stock outstanding - diluted |
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102.9 |
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104.2 |
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102.9 |
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104.1 |
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4
CONDENSED CONSOLIDATED BALANCE SHEETS
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES
(Dollar amounts in millions) (Unaudited)
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June 30, 2008 |
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December 31, 2007 |
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ASSETS |
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Cash and cash equivalents |
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$ |
169.4 |
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$ |
352.1 |
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Short-term investments |
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163.4 |
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180.1 |
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Receivables, net |
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264.2 |
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243.1 |
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Inventories |
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206.8 |
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212.1 |
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Prepaid expenses and other current assets |
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9.6 |
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7.6 |
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Deferred income taxes |
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17.8 |
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0.5 |
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Current portion of notes receivable from asset sales |
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20.0 |
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74.4 |
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Current assets of discontinued operations |
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3.5 |
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6.0 |
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Total current assets |
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854.7 |
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1,075.9 |
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Timber and timberlands |
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59.2 |
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64.1 |
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Property, plant and equipment |
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2,368.3 |
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2,257.7 |
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Accumulated depreciation |
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(1,228.0 |
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(1,180.9 |
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Net property, plant and equipment |
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1,140.3 |
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1,076.8 |
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Goodwill |
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277.8 |
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273.5 |
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Notes receivable from asset sales |
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258.6 |
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258.6 |
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Restricted cash |
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73.2 |
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61.2 |
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Long-term investments |
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105.8 |
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152.9 |
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Investments in and advances to affiliates |
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193.4 |
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198.2 |
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Other assets |
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58.0 |
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63.1 |
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Long-term assets of discontinued operations |
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5.0 |
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5.0 |
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Total assets |
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$ |
3,026.0 |
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$ |
3,229.3 |
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LIABILITIES AND EQUITY |
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Current portion of long-term debt |
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$ |
123.6 |
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$ |
127.6 |
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Short-term notes payable |
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33.4 |
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45.2 |
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Accounts payable and accrued liabilities |
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195.8 |
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222.1 |
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Current portion of limited recourse notes payable |
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20.0 |
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73.5 |
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Current portion of deferred tax liabilities |
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4.4 |
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4.4 |
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Current portion of contingency reserves |
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67.8 |
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15.8 |
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Total current liabilities |
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445.0 |
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488.6 |
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Long-term debt, excluding current portion: |
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Limited recourse notes payable |
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253.3 |
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253.3 |
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Other long-term debt |
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244.5 |
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232.5 |
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Total long-term debt, excluding current portion |
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497.8 |
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485.8 |
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Deferred income taxes |
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308.2 |
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340.0 |
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||
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Other long-term liabilities |
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84.2 |
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79.6 |
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Minority interest |
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18.6 |
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— |
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Contingency reserves, excluding current portion |
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21.9 |
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15.8 |
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Commitments and contingencies |
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Stockholders’ equity: |
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Common stock |
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116.9 |
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116.9 |
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Additional paid-in capital |
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438.1 |
|
439.0 |
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Retained earnings |
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1,471.9 |
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1,630.1 |
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Treasury stock |
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(297.3 |
) |
(302.0 |
) |
||
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Accumulated comprehensive loss |
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(79.3 |
) |
(64.5 |
) |
||
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Total stockholders’ equity |
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1,650.3 |
|
1,819.5 |
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Total liabilities and equity |
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$ |
3,026.0 |
|
$ |
3,229.3 |
|
5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES
(Dollar amounts in millions) (Unaudited)
|
|
|
Six Months Ended June 30, |
|
||||
|
|
|
2008 |
|
2007 |
|
||
|
|
|
|
|
|
|
||
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
||
|
Net income (loss) |
|
$ |
(127.2 |
) |
$ |
(60.6 |
) |
|
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |
|
|
|
|
|
||
|
Depreciation, amortization and cost of timber harvested |
|
53.4 |
|
57.7 |
|
||
|
(Earnings) losses of unconsolidated affiliates |
|
9.5 |
|
8.2 |
|
||
|
(Gain) loss on sale or impairment of long-lived assets |
|
(0.3 |
) |
14.2 |
|
||
|
Stock based compensation expense related to stock plans |
|
4.9 |
|
3.3 |
|
||
|
Other operating charges and credits, net |
|
72.2 |
|
— |
|
||
|
Exchange (gain) loss on remeasurement |
|
(9.1 |
) |
19.1 |
|
||
|
Cash settlement of contingencies |
|
(9.6 |
) |
(6.9 |
) |
||
|
Pension (payments) expense, net |
|
6.2 |
|
(2.1 |
) |
||
|
Other adjustments |
|
4.1 |
|
(6.1 |
) |
||
|
Increase in receivables |
|
(23.5 |
) |
(20.2 |
) |
||
|
(Increase) decrease in inventories |
|
11.0 |
|
(0.7 |
) |
||
|
Increase in prepaid expenses |
|
(1.6 |
) |
(1.9 |
) |
||
|
Decrease in accounts payable and accrued liabilities |
|
(6.7 |
) |
(14.4 |
) |
||
|
Increase (decrease) in deferred income taxes |
|
(38.4 |
) |
0.5 |
|
||
|
Net cash used in operating activities |
|
(55.1 |
) |
(9.9 |
) |
||
|
|
|
|
|
|
|
||
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
||
|
Property, plant, and equipment additions |
|
(75.9 |
) |
(132.3 |
) |
||
|
Purchase of a business |
|
(44.6 |
) |
— |
|
||
|
Investments in and advances to joint ventures |
|
(4.2 |
) |
(4.9 |
) |
||
|
Receipt of proceeds from notes receivable |
|
54.4 |
|
— |
|
||
|
Cash paid for purchase of investments |
|
(172.9 |
) |
(1,538.1 |
) |
||
|
Proceeds from sales of investments |
|
209.3 |
|
1,669.4 |
|
||
|
(Increase) decrease in restricted cash under letter of credit requirements |
|
(12.0 |
) |
(10.8 |
) |
||
|
Other investing activites, net |
|
1.1 |
|
2.0 |
|
||
|
Net cash used in investing activities |
|
(44.8 |
) |
(14.7 |
) |
||
|
|
|
|
|
|
|
||
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
||
|
Borrowings of long-term debt |
|
12.0 |
|
13.0 |
|
||
|
Repayment of debt |
|
(53.6 |
) |
(0.2 |
) |
||
|
Net borrowings (payments) under revolving credit agreements |
|
(11.8 |
) |
29.6 |
|
||
|
Sale of common stock under equity plans |
|
— |
|
2.7 |
|
||
|
Payment of cash dividends |
|
(31.0 |
) |
(31.4 |
) |
||
|
Net cash provided by (used in) financing activities |
|
(84.4 |
) |
13.7 |
|
||
|
|
|
|
|
|
|
||
|
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS |
|
1.6 |
|
0.9 |
|
||
|
|
|
|
|
|
|
||
|
Net decrease in cash and cash equivalents |
|
(182.7 |
) |
(10.0 |
) |
||
|
Cash and cash equivalents at beginning of period |
|
352.1 |
|
265.7 |
|
||
|
|
|
|
|
|
|
||
|
Cash and cash equivalents at end of period |
|
$ |
169.4 |
|
$ |
255.7 |
|
6
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES
SELECTED SEGMENT INFORMATION
(Dollar amounts in millions) (Unaudited)
|
|
|
Quarter Ended June 30, |
|
Six Months Ended June 30, |
|
||||||||
|
Dollar amounts in millions |
|
2008 |
|
2007 |
|
2008 |
|
2007 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net sales: |
|
|
|
|
|
|
|
|
|
||||
|
OSB |
|
$ |
163.5 |
|
$ |
223.3 |
|
$ |
318.4 |
|
$ |
412.2 |
|
|
Siding |
|
123.6 |
|
131.0 |
|
230.7 |
|
235.1 |
|
||||
|
Engineered Wood Products |
|
65.3 |
|
85.7 |
|
125.8 |
|
165.9 |
|
||||
|
Other |
|
36.0 |
|
23.9 |
|
64.7 |
|
47.6 |
|
||||
|
Less: Intersegment sales |
|
(1.4 |
) |
(2.7 |
) |
(3.2 |
) |
(5.0 |
) |
||||
|
|
|
$ |
387.0 |
|
$ |
461.2 |
|
$ |
736.4 |
|
$ |
855.8 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Operating profit (loss): |
|
|
|
|
|
|
|
|
|
||||
|
OSB |
|
$ |
(34.5 |
) |
$ |
(44.6 |
) |
$ |
(96.6 |
) |
$ |
(109.1 |
) |
|
Siding |
|
8.9 |
|
17.2 |
|
9.2 |
|
26.6 |
|
||||
|
Engineered Wood Products |
|
(9.2 |
) |
3.9 |
|
(17.3 |
) |
10.3 |
|
||||
|
Other |
|
(0.2 |
) |
(2.7 |
) |
(2.6 |
) |
(0.6 |
) |
||||
|
Other operating credits and charges, net |
|
(70.1 |
) |
19.2 |
|
(66.1 |
) |
19.2 |
|
||||
|
Gain (loss) on sales of and impairment of long-lived assets |
|
(0.1 |
) |
0.3 |
|
0.3 |
|
(5.2 |
) |
||||
|
General corporate and other expenses, net |
|
(22.1 |
) |
(20.8 |
) |
(46.2 |
) |
(43.3 |
) |
||||
|
Foreign currency gain (losses) |
|
(5.1 |
) |
(12.7 |
) |
4.3 |
|
(15.5 |
) |
||||
|
Other than temporary investment impairment |
|
(1.7 |
) |
— |
|
(2.5 |
) |
— |
|
||||
|
Investment income |
|
10.6 |
|
23.4 |
|
23.4 |
|
43.8 |
|
||||
|
Interest expense, net of capitalized interest |
|
(12.7 |
) |
(9.7 |
) |
(23.9 |
) |
(20.0 |
) |
||||
|
Income from operations before taxes |
|
(136.2 |
) |
(26.5 |
) |
(218.0 |
) |
(93.8 |
) |
||||
|
Provision (benefit) for income taxes |
|
(56.8 |
) |
(10.9 |
) |
(92.7 |
) |
(42.2 |
) |
||||
|
Income (loss) from continuing operations |
|
$ |
(79.4 |
) |
$ |
(15.6 |
) |
$ |
(125.3 |
) |
$ |
(51.6 |
) |
7
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. The major components of “Other operating credits and charges, net” and “(Gain) loss on sale or impairment of long lived assets” in the Consolidated Statements Of Income for the quarter and six month period ended June 30 are described below:
In the first quarter of 2007, LP recorded a charge of $5.0 million to reduce the carrying value of a sawmill mill located in Quebec to the estimated sales price less selling costs.
In the second quarter of 2007, LP recorded a gain of $17.7 million associated with proceeds received associated with a favorable verdict on a legal suit associated with our insurance on hardboard siding and a gain of $1.5 million associated with a settlement with the Canadian government on the reduction of certain of LP’s timber licenses in British Columbia.
In the first quarter of 2008, LP recorded a net gain of $4.0 associated with product related warranty reserves and insurance settlements associated with LP hardboard class action suit and other associated hardboard siding liabilities.
In the second quarter of 2008, LP recorded a loss of $15.6 million associated with product related warranty reserves in connection with LP’s hardboard class action suit; a loss of $48 million associated with LP’s settlement of a product related anti-trust litigation matter; a loss of $5.3 million associated with a facility explosion and a loss of $1.2 million associated with a contractor default on a construction project.
3. During the second quarter of 2008, LP recorded other comprehensive losses of $12.8 million ($7.8 million after-tax) as a reduction to shareholders’ equity associated with LP’s auction rate security holdings due to further temporary declines in the estimated fair value. For the six month period ended June 30, 2008, LP recorded other comprehensive losses of $25.5 million ($15.6 million after-tax) as a reduction to shareholders’ equity associated with LP’s auction rate security holdings due to further temporary declines in the estimated fair value.
4. Income Taxes
|
|
|
Quarter Ended June 30, |
|
Six Months Ended June 30, |
|
||||||||
|
|
|
2008 |
|
2007 |
|
2008 |
|
2007 |
|
||||
|
Pre-tax income (loss) from continuing operations |
|
$ |
(136.2 |
) |
$ |
(26.5 |
) |
$ |
(218.0 |
) |
$ |
(93.8 |
) |
|
Pre-tax loss from discontinued operations |
|
(2.3 |
) |
(12.6 |
) |
(3.1 |
) |
(14.8 |
) |
||||
|
|
|
(138.5 |
) |
(39.1 |
) |
(221.1 |
) |
(108.6 |
) |
||||
|
Total tax (provision) benefit |
|
57.7 |
|
15.8 |
|
93.9 |
|
48.0 |
|
||||
|
Net income (loss) |
|
$ |
(80.8 |
) |
$ |
(23.3 |
) |
$ |
(127.2 |
) |
$ |
(60.6 |
) |
Accounting standards require that income tax expense for interim periods be determined by applying the estimated annual effective income tax rate, by income component, to year-to-date income or loss at the end of each quarter, then adding or subtracting the impact of any changes in reserve requirements or statutory tax rate changes, if any. Each quarter the income tax accrual is adjusted to the latest estimate and the difference from the previously accrued year-to-date balance is adjusted to the current quarter.
For the six months ended June 30, 2008, the primary differences between the U.S. statutory rate of 35% and the effective rate on continuing operations relates to the company’s foreign debt structure and state income taxes. For the six months ended June 30, 2007, the primary differences between the U.S. statutory rate of 35% and the effective rate on continuing operations relates to the company’s foreign debt structure, state income taxes and the favorable resolution of an outstanding state tax contingency.
The components and associated effective income tax rates applied to each period are as follows:
8
|
|
|
Quarter Ended June 30, |
|
||||||||
|
|
|
2008 |
|
2007 |
|
||||||
|
|
|
Tax Benefit |
|
Tax Rate |
|
Tax Benefit |
|
Tax Rate |
|
||
|
Continuing operations |
|
$ |
(56.8 |
) |
42 |
% |
$ |
(10.9 |
) |
41 |
% |
|
Discontinued operations |
|
(0.9 |
) |
39 |
% |
(4.9 |
) |
39 |
% |
||
|
|
|
$ |
(57.7 |
) |
42 |
% |
$ |
(15.8 |
) |
40 |
% |
|
|
|
Six Months Ended June 30, |
|
||||||||
|
|
|
2008 |
|
2007 |
|
||||||
|
|
|
Tax Benefit |
|
Tax Rate |
|
Tax Benefit |
|
Tax Rate |
|
||
|
Continuing operations |
|
$ |
(92.7 |
) |
43 |
% |
$ |
(42.2 |
) |
45 |
% |
|
Discontinued operations |
|
(1.2 |
) |
39 |
% |
(5.8 |
) |
39 |
% |
||
|
|
|
$ |
(93.9 |
) |
42 |
% |
$ |
(48.0 |
) |
44 |
% |
9
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES
SUMMARY OF PRODUCTION VOLUMES
|
|
|
Quarter Ended June 30 |
|
|
|||||
|
|
|
2008 |
|
2007 |
|
2008 |
|
2007 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Oriented strand board, million square feet 3/8” basis (1) |
|
1,029 |
|
1,458 |
|
2,096 |
|
2,808 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Oriented strand board, million square feet 3/8” basis (produced by wood-based siding mills) |
|
54 |
|
72 |
|
167 |
|
114 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Wood-based siding, million square feet 3/8” basis |
|
223 |
|
247 |
|
435 |
|
489 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineered I-Joist, million lineal feet (1) |
|
22 |
|
36 |
|
41 |
|
71 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Laminated veneer lumber (LVL), thousand cubic feet |
|
1,628 |
|
2,165 |
|
3,144 |
|
4,331 |
|
(1) Includes volumes produced by joint venture operations or under exclusive sales arrangements and sold to LP.
10