Nashville-based Louisiana-Pacific suspended its quarterly payout to shareholders today. The building-materials producer says its 15 cents-per-share dividend will remain suspended until the housing market improves.
For the first six months of this year, the company reported $127 million in losses. That’s double the losses for the same period last year.
Officials say the move is one of several initiatives the company is taking to conserve its cash reserves.
Still, stock analyst Steven Chercover says the company is on strong financial footing compared to others in the industry.
“They have a better balance sheet than almost any company in my space. They still have net cash. So, they’ve got some maturities this year and they will repay them, and eventually the cycle will turn and they’ll be profitable again.”
The move is expected to save the company $62 million annually.
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