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LP: OSB division again increases over-proportionally

13.05.2021 − 

In the first quarter, the OSB business division of Louisiana-Pacific generated total turnover to the amount of US$539m. The preceding year’s figure was thus exceeded by 145%. As in the previous quarters, the significant increase was largely due to higher average prices. According to Louisiana-Pacific, these prices boosted the business division’s turnover by US$333m. Deliveries of OSB, in contrast, declined by 7% to a volume of 858m sqft (basis 3/8’’). A 13% decline to 456m sqft in the case of standard OSB could be only partially offset by increased deliveries of the higher-quality assortments consolidated under the name structural solutions (+2% to 402m sqft). The considerable turnover growth also had a clearly positive effect on the development of results. Despite higher transport costs, the business unit’s adjusted EBITDA increased tenfold to US$354m.

The growth in turnover and results recorded since mid-2020 has continued in the current period. Due to the positive development in the second half of the year, turnover generated with OSB rose by more than 50% to US$1.220bn for the entire year. Adjusted EBITDA increased many times over to US$519m, albeit from a comparatively low initial value. In the first half of the year, turnover had increased by just 4% to US$424m, and adjusted EBITDA had amounted to US$81m.

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