CANADA – Norbord Inc. reported EBITDA of USD33 million in the second quarter of 2014 compared to USD27 million in the first quarter of 2014 and USD102 million in the second quarter of 2013.

The year-over-year change is due to the exceptional North American OSB prices in the first half of 2013. North American operations generated EBITDA of USD24 million in the quarter versus USD17 million in the prior quarter and USD92 million in the same quarter last year. European operations generated EBITDA of USD12 million in the second quarters of both 2014 and 2013 versus USD13 million in the prior quarter.

“In North America, homebuilding activity continues to improve. But the pace has been held back by labor availability and a lack of entry-level buyers and OSB prices have been disappointing,” said Peter Wijnbergen, President and CEO. “However, we are not discouraged. We always expected it would take time for OSB demand growth to absorb the additional capacity that has been ramping up since early 2013.

Norbord explained that demand from their key customers in all core segments – new home construction, home improvement and industrial – continues to grow, driving 10% higher shipments so far this year. At the same time, their OSB cash production costs are declining due to improved productivity and lower raw material usages.

“European panel markets were a bit slower in the second quarter, reflecting a pullback from a particularly robust first quarter. Our business there performed well once again and our panel mills are operating at record production levels. I expect we will continue to generate solid results through the second half of the year.” Added Peter Wijnbergen, President and CEO.