Building materials manufacturer Louisiana-Pacific on Tuesday posted a second-quarter loss of $19.5 million, a year after it eked out a small profit. Sales fell 5 percent during the quarter to $493 million, with shipments of the company's core oriented strand board products rising 11 percent but prices falling 15 percent.
"The continued weakness in OSB pricing in the quarter, we believe, was caused by the reduction in demand due to very wet weather in the middle of the country, including Texas," said CEO Curt Stevens. "With the distribution channel relatively full coming out of the first quarter, re-ordering was at a slower pace than anticipated."
Stevens said the second-half outlook for housing starsts is promising. In mid-morning trading, shares of LP (Ticker: LPX) were down slightly to $15.61.
Executives at oil refiner and marketer Delek US Holdings said the company's Q2 profit came in at $48.3 million, down from $54.9 million in the year-earlier period. Revenues slipped to $1.69 billion from $2.37 billion as oil prices and operating income fell to $79.8 million from $106 million.
Chairman, President and CEO Uzi Yemin said the company's Texas refinery put up strong numbers after a March expansion project and that their Arkansas refinery now has access to crude oil from an Exxon pipeline that that company recently reversed. Delek's 360-store retail business saw its fuel margin slip to 15.3 cents from 19.3 cents, which cut its contribution margin 14 percent to $14.3 million.
Looking ahead, Yemin said Delek's capital spending needs will drop off in the second half, "which should create the potential for increased free cash flow from our operations." At about 11:15 a.m., shares of the company (Ticker: DK) were changing hands at $34.64, up 0.6 percent on the day.
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