Norbord CEO Barrie Shineton said the company’s European division, comprising the Inverness (OSB), Cowie (MDF and chipboard), South Molton (chipboard and further processing) and Genk, Belgium (OSB) mills recorded earnings before interest, tax, depreciation and amortisation (EBITDA) of £6.4m.
Norbord said panel markets remained steady in Europe, despite continuing macroeconomic uncertainty. The continued strength of the euro versus the pound meant UK customers were substituting more expensive imported panels with UK manufactured product.
Average panel prices increased 2% year-on-year in the first quarter and 5% compared to the previous quarter. The average European OSB price was €265/m3 (gross delivered price to the largest Continental market). OSB and chipboard markets were strong and MDF markets remain stable.
“Sterling remained in a range versus the Euro that continues to support Norbord’s primarily UK-based manufacturing,” it said.
In Europe, shipments were 3% lower than the same quarter last year due to lower retail furniture sales over the holiday period, but shipments increased by 5% over the prior quarter.
Norbord’s European panel mills produced at approximately 100% of capacity in the quarter, compared to 95% in the same quarter last year and 90% in the prior quarter.
“We have extended order files for all our panel products and OSB markets, in particular, are stengthening,” added Mr Shineton.
“Barring any significant currency swings, I expect continued steady performance from our European business.”
