The company reported earnings before tax, depreciation and amortization (EBITDA) of US$31m. That compares with US$10m in the same period in 2011 and US$21m in the first quarter .

Norbord’s North American operations returned second quarter EBITDA of US$26m, against break even last year, while its European business reported US$9m against US$13m.

Total sales for the three months were $272m, against US$241m the year before. That took turnover for the first half to US$525m, compared with $494m.

The improvement in American home building played a significant role in the company’s upturn, said chief executive Barrie Shineton.

"We are finally seeing a more sustainable US housing recovery and this is flowing through to our bottom line, " he said.

"All the indicators in US housing are positive," chief financial officer Robin Lampard told TTJ last week. "Latest forecasts for starts this year are 760,000. That’s someway off the 2m peak and the 1.5m average , but signicantly up from the lowpoint of 500,000. And signs are that we’re going to see healthy continuity in the market, with permits up around 29%."

She added that the housing improvement was attributed to better affordability and consumers "learning to work their way round the tough credit sector".

"Home buyers are finally learning how to get that mortgage in today’s difficult market," she said.

Norbord’s figures were also lifted by the north central OSB benchmark price, which was 36% ahead of second quarter 2011 levels, at $235/Msf.

Another key factor in its performance was reduced North American panel capacity. Manufacturers were not yet bringing moth-balled capacity back on line, and, in fact, Norbord has now indefinitely shut its Val-d’Or mill in Quebec, following the mothballing of plants in Alabama and Texas.

"The industry view is that current capacity could support 850,000 housing starts, so we have some way to go before we start opening plants again," said Ms.

In Europe, Norbord is experiencing greater uncertainty, with the Euro crisis and double dip recession in a number of countries denting market confidence. But, while its second quarter shipments from European mills were 4% down, year to date figures were comparable with 2011 and, although OSB prices were off their peak, MDF and particleboard were 3% up on last year.

"Our European outlook is more cautious," said Ms. "But we expect improvement in North America to be sustained."