Highlights for Q2 include a 61% increase in sales from the previous quarter, to US$3.779bn. Earnings increased to US$1,488m, or 39% of sales, from US$665m in the previous quarter. Adjusted EBITDA increased to US$2.16bn from US$1.008bn in Q1.
The company said that the contribution of a full three months from its OSB operations from the Norbord acquisition, higher plywood pricing and recovery of plywood shipment volumes from the weather-related railcar shortages experienced in the previous quarter positively impacted adjusted EBITDA for the quarter.
The integration of the Norbord business is still in the early stages and remains a company focus. It says it remains on track to achieve targeted annual synergies of US$61m over the next 12-18 months.
“The most significant uses for our lumber and OSB products are residential construction, repair and remodelling, and industrial applications,” said the company. “Low mortgage rates, low volumes of homes available for resale, favourable demographics, increasing acceptance of remote working and the underlying housing construction deficit due to several years of underbuilding appear to be positively influencing the demand for new housing in North America. An aging housing stock and repair and renovation spending should also continue to drive lumber, plywood and OSB demand.
“Our balance sheet remains strong and well equipped to face potential volatility that may exist in our markets over the coming quarters and to support capital expenditure plans and returning capital to shareholders.”
