Louisiana-Pacific: Low prices and falling demand continue to impact OSB business

Louisiana-Pacific reported lackluster second-quarter results as lumber markets faced persistent pressure amid a stagnant housing market. Net sales plunged 46% year over year as demand for wood products remained hampered across LP’s markets. While all four segments reported double-digit revenue declines in the quarter, LP’s oriented strand board, or OSB, business was hit the hardest as softening demand weighed heavily on selling prices. Louisiana-Pacific faces a difficult second half of the year as lumber prices remain well below pandemic-era highs and rising interest rates continue to constrain housing markets. Nevertheless, we maintain ...