CANADA - Norbord Inc., one of the largest global OSB manufacturers, reported adjusted EBITDA of USD18 million in the second quarter of 2015 compared to USD 46 million in the second quarter of 2014.
The year-over-year change is primarily due to lower North American oriented strand board (OSB) prices. North American operations generated adjusted EBITDA of USD 11 million in the quarter, compared to USD 37 million in the same quarter last year. European operations delivered adjusted EBITDA of USD 10 million in the quarter compared to USD 12 million in the same quarter last year.
“The poor North American OSB demand/capacity ratio continued to impact OSB prices in the second quarter,” said Peter Wijnbergen, Norbord President and CEO. “We curtailed production at several mills in response to the slower than expected rebound in new home construction demand. However, the May and June US housing data was encouraging, we are starting to see a pick-up in export orders and our sales to home improvement and industrial customers continue to grow. All this supports our belief that the OSB market dynamic will gradually improve in the coming quarters. In the meantime, our manufacturing costs continue to decline as we focus on our controllables and benefit from lower resin prices and the weaker Canadian dollar. ”
Norbord Results April - June
Million USD
Source: Quarterly Report
Norbord Results January - June
Million USD
Source: Quarterly Report
