Louisiana-Pacific Names New CEO - Analyst Blog
March 15 2012 - 9:00AM
Zacks
Louisiana-Pacific Corporation (LPX) has
announced the promotion of Curt Stevens to the post of chief
executive officer (CEO), effective from May 4, 2012. Stevens will
succeed Rick Frost who is retiring on May 31, 2012. Until now,
Stevens was serving as company’s executive vice president and chief
operating officer.
Stevens, who is also a board of director in Quanex
Building Products Corp. (NX), has been with
Louisiana-Pacific since 1997 and has held senior management
positions. Frost, who has served as the CEO for 7 years, will now
assist Stevens for a few days to prepare him for his duties till he
retires.
Louisiana-Pacific expects his leadership qualities and his
experience in financial and operational matters to boost the future
performance of the company.
However, Louisiana-Pacific has been posting losses since several
quarters owing to the downturn in the housing industry combined
with an overall weak economic condition, high unemployment rates,
reduced credit availability, rising interest rates and lack of
incentives like tax-credit for homebuyers. The fiscal year 2011
also showed losses, attributable to sluggish demand for building
products due to seasonality and inventory reduction actions taken
by the company’s customers at year's end.
Besides, the housing market has become extremely aggressive and
new homes are facing tough competition from housing alternatives,
including resale homes, foreclosed homes, short sale homes and
rental housing.
Though Frost is hopeful about the recovery in the North American
housing market in 2012 in the near term, we expect the process to
be slow. We thus maintain a Zacks #3 Rank on Louisiana-Pacific,
which translates into a short-term Hold rating.
LOUISIANA PAC (LPX): Free Stock Analysis Report
QUANEX BLDG PRD (NX): Free Stock Analysis Report
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