Louisiana-Pacific says 3Q loss shrinks to $12.5M

NASHVILLE, Tenn. (AP) — Wood-products maker Louisiana-Pacific Corp. said Tuesday its loss narrowed in the third quarter but sales dropped almost 21 percent as weakness in home building continued.

The company posted a loss of $12.5 million, or 12 cents per share, compared with a loss of $111.1 million, or $1.08 per share, a year earlier. Revenue fell to $308.8 million from $389.6 million.

Analysts surveyed by Thomson Reuters on average were expecting a loss of 19 cents per share on revenue of $304.1 million.

CEO Rick Frost said the housing market is still depressed, but the company saw seasonal improvement in demand "and a few encouraging signs that the housing market is beginning to recover."

However, the fourth quarter is usually a weak period for demand. The company said its goal for the rest of 2009 will be to conserve cash. During the third quarter, it raised $132.3 million by offering shares, and used most of it to retire notes due in 2017. The move will save it $17 million a year in interest, the company said.

Shares of Louisiana-Pacific gained 9 cents to $5.26 in afternoon trading.