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About Louisiana-Pacific Corporation

Specializing in floors, walls, and roofs, Louisiana-Pacific (LP) might just have you surrounded. The building materials company makes specialized wood products such as oriented strand board (a lower-cost version of plywood), siding, and laminated lumber and related products. Its offerings are used in new home and manufactured housing construction, as well as repair and remodeling, and for sheds and other outdoor structures. The company sells its products to distributors, dealers, professional lumberyards, and retail home centers. It has production facilities throughout North and South America, but generates most of its revenue in US.


LP operates through four segments: Siding, Oriented Strand Board (OSB), Engineered Wood Products (EWP), and South America.

Siding segment accounts for more than 40% of revenue and consists of LP SmartSide Strand and Fiber trim and siding, LP CanExel prefinished siding, and LP Outdoor Building Solutions products for premium outdoor buildings.

OSB segment accounts for about a third, makes and distributes OSB structural panel products including LP TechShield radiant barrier, LP WeatherLogic weather-resistant sheathing, LP TopNotch sub-flooring, LP Legacy premium sub-flooring, and LP FlameBlock fire-rated sheathing.

EWP segment generates more than 15% of revenue, comprised of LP SolidStart I-Joist (I-Joist), Laminated Veneer Lumber (LVL), and Laminated Strand Lumber (LSL) and other related products.

The company's South America segment, which manufactures and distributes OSB and siding products across that continent and in select export markets, accounts for about 5% of sales.

Geographic Reach

Nashville, Tennessee-based LP operates about two dozen production facilities in the US and Canada. It also owns two facilities in Chile, and one in Brazil. The US is LP's largest market, accounting for about 70% of its sales. Canada is second with a quarter of sales, and South America accounts for the rest.

Sales and Marketing

LP markets its products to a variety of customers. Its primary customer segments include local, regional, and state wholesale distributors; two-step distributors, which supply smaller contractors and retailers; building materials dealers; retail home centers serving professional builders and remodelers, as well as DIY customers; and makers of sheds and other prefabricated structures.

The company's top 10 customers account for some 40% of sales.

LP's advertising costs amounted to $28 million, $21 million and $19 million in 2019, 2018 and 2017, respectively.

Financial Performance

LP's revenue has bounced up and down in a narrow range for the past five years with a high of $2.8 billion in 2018 and a low of $1.9 billion in 2015. Net income hit a high in 2018, but is down more than 100% in 2019.

LP recorded a $518 million or 18% decrease in net sales to $2.3 billion in 2019, from $2.8 billion in 2018, primarily due to $416 million of reduced OSB prices and reductions in OSB shipments across all North American segments.

The company recorded a net loss of $5 million during 2019 compared to net income of $395 million during the prior year.

Cash at the end of 2019 was $195 million, a decrease of $697 million from the prior year. Cash from operations contributed $159 million to the coffers, while investing activities used $137 million, mainly on additions of property, plant, and equipment. Financing activities used $717 million primarily for purchase of common stock


LP has certainly benefited from demand growth as it continues to displace alternative siding materials such as vinyl, wood, fiber cement, and other materials. LP consistently grown its Siding segment above the underlying market growth rates, and this segment is less sensitive to new housing market cyclicality as over 50% of its demand comes from other markets, including sheds, retail, and repair and remodeling.

Through its sales efforts, LP target customers by channel and focus on providing them with a broad array of traditional and specialty building products coupled with quality service. LP continue to grow its Structural Solutions line of high value-add OSB products to provide more stable margins. LP strategically located facilities in the U.S., Canada, Chile, and Brazil allow them to be closer to their customers and more responsive to their changing needs. LP prioritize high-quality service and continue to build on its reputation for on-time shipments. In addition, LP continually seek to identify new specialty building solutions and markets where it can utilize its core competencies in the design, manufacturing, and marketing of building products.

LP believe that its investments in South America should help them continue to satisfy the growing demand for wood-based residential construction in this region. Continued investments as a market leader in this region should allow them to capitalize on demand while diversifying its revenue mix and market cyclicality.

Mergers and Acquisitions

In 2019, LP acquired Prefinished Staining Products, Inc. (PSPI), a prefinished siding company located in Green Bay, Wisconsin. The prefinished Siding market is expected to grow significantly over the next five years. Acquiring PSPI provides LP with the facilities, capability, and expertise to enter this market and drive growth in its Siding business. In addition, LP will continue to utilize its existing prefinished providers and partner to help grow their business as well as the LP SmartSide brand. PSPI will operate as part of LP's Siding business.

Louisiana-Pacific Corporation

414 Union St Ste 2000
Nashville, TN 37219-1711
Phone: 1 (615) 986-5600

Firm Stats

Employer Type: Publicly Owned
Stock Symbol: LPX
Stock Exchange: , NYSE
EVP and CFO: Sallie B. Bailey
Chairman: E. Gary Cook
CEO: W. Bradley Southern
Employees (This Location): 150
Employees (All Locations): 4,800

Major Office Locations

Nashville, TN

Other Locations

Hanceville, AL
Selma, AL
Thomasville, AL
Hayden, ID
Schaumburg, IL
Middlebury, IN
New Limerick, ME
Two Harbors, MN
North Wilkesboro, NC
Roxboro, NC
Wilmington, NC
Binghamton, NY
Portland, OR
Goodlettsville, TN
Nashville, TN
Carthage, TX
Jasper, TX
Vancouver, WA
Hayward, WI
Santiago, Chile
Bois-Franc, Canada
Chambord, Canada
Chester, Canada
Dawson Creek, Canada
Fort St. John, Canada
Golden, Canada
Malakwa, Canada
Minitonas, Canada
Swan River, Canada