Louisiana-Pacific Corporation (NYSE:LPX) Q2 2022 Earnings Conference Call August 9, 2022 11:00 AM ET
Company Participants
Aaron Howald - Vice President, Investor Relations & Business Development
Brad Southern - Chief Executive Officer
Alan Haughie - Chief Financial Officer
Conference Call Participants
Ketan Mamtora - BMO
Susan Maklari - Goldman Sachs
Sean Steuart - TD Securities
Mark Weintraub - Seaport
Michael Roxland - Truist
Kurt Yinger - D.A. Davidson
Paul Quinn - RBC Capital
Mark Weintraub - Seaport
George Staphos - Bank of America
Aaron Howald
[Starts Abruptly] and other mterials. Slides two and three of the earnings presentation provide notices and detail regarding non-GAAP financial metrics and forward-looking statements. The appendix of the presentation also contains reconciliations that are further supplemented by this morning's 8-K filing. Rather than reading those statements, I incorporate them herein by reference.
And with that, I'll turn the call over to Brad.
Brad Southern
Thanks, Aaron. Good morning and welcome to LP's earnings call for the second quarter of 2022. LP's ongoing transformation continues to deliver results with another very strong quarter of growth and value creation. We face ongoing inflationary pressures for raw materials and freight, but as Alan will discuss later, LP's growth more than offset these cost headwinds in the quarter.
While we are watching inflation, mortgage rates, the housing market and the broader economy very closely, so far we have seen a few signs of reduced demand for LP's products. This is especially true of demand for a more specialized and higher value-added offerings.
Siding Solutions grew at 24% year-over-year to hit $356 million in sales, which is another quarterly record. Commodity OSB prices fell steeply through the quarter, but LP's portfolio with specialty Structural Solutions products significantly improved price realization and margin for the OSB segment. As a result, we've somewhat outperformed our algorithmic guidance for OSB revenue.
Structural Solutions volume increased by 28% to reach 53% of total volume in the second quarter. Through the first half of 2022, LP has delivered over 1 billion square feet of Structural Solutions products. Logistics challenges we faced earlier this year, especially in British Columbia, have eased somewhat, helping our operations team minimize logistics-related downtime.
I will give a more detailed capital allocation update in a moment, but LP remains committed to returning cash to shareholders via dividends and share repurchases. In fact LP returned almost $500 million to shareholders in Q2 and we have spent a little under $200 million, so far in Q3 on buybacks. And LP's Board of Directors approved another quarterly dividend of $0.22 per share as you may have seen in Friday's press release.