Norbord has reported third quarter earnings before interest, taxes, depreciation and amortisation (EBITDA) of C$30m, driven by record OSB production in America and strong panel prices in Europe.
EBITDA in quarter three was up by C$13m from quarter two, with Norbord recording a much-improved loss of C$1m, up from a C$15m loss in the previous quarter.
According to the firm, prices across its European product range “remained strong”, with panel prices up by 15%, and OSB production in North America increased by 10% year-on-year, putting it in a “strong position” to benefit from a recovery in US housing starts.
“Norbord’s business is heavily weighted towards OSB – a cyclical commodity,” said president and chief executive officer Barrie Shineton in a letter to shareholders.
“Our strategy remains to serve us well. Our management team is innovative, motivated and committed. Norbord is very well positioned to benefit when the housing market recovers.”
Mr Shineton added that the company would be focusing on improving the performance of its OSB business in the coming quarters, particularly the facility at Cordele in Georgia, as well as focusing on growth customers, reducing capital expenditures and improving profit margins.
