The OSB, chipboard and MDF producer saw its main North American operations record earnings before interest, tax, depreciation and amortisation (EBITDA) of US$92m (2012: US$26m) in Q2, while the European business generated EBITDA of US$12m (2012: US$9m).
The profits for the North American business were marginally down on Q1, due to a significant OSB price correction.
“Although prices were expected to adjust after reaching record levels in the first quarter, I was surprised by the degree of the correction,” said CEO Barrie Shineton.
“OSB prices are now recovering and I believe this trend will continue as the fundamentals supporting US new home construction remain very strong.”
The European business, where the UK is the largest market for Norbord, saw panel demand and prices improve over the previous quarter.
“And, we are beginning to see early signs of a fundamental turnaround in UK housing,” added Mr Shineton.
OSB prices reached a nine-year high in Q1, peaking at US$430 per 1,000ft2, before moving steadily downwards across all regions in Q2. But prices were still close to 50% higher than a year ago.
Q2 European panel prices were 6% higher than a year ago and 2% better than the previous quarter. OSB and chipboard performed strongest, with prices up 8% and 5% respectively over the same quarter last year.
North American volumes were flat year-on-year but rose 7% from the previous quarter, with Norbord producing at 105% of stated capacity (excluding mothballed mills). The Jefferson OSB mill, mothballed since 2009, has been restarted because of the improved market.
European volumes were 6% higher than a year ago and 2% higher than the previous quarter as panel demand improved. Capacity utilisation improved to 100%.
