Norbord reported Adjusted EBITDA of USD 165 million (30.8% margin vs 21% in 2Q2016) for 2Q2017, 75.5% higher y-o-y. The company explains the improvement primarily with higher North American oriented strand board (OSB) prices and shipment volumes.
For the 6 months period of 2017 the company’s net sales accounted for USD 1,003 million, generating USD 268 million Adjusted EBITDA.
Peter Wijnbergen, Norbord’s President and CEO, commented:
“Our second quarter Adjusted EBITDA result is our best since 2004. The improved operational performance of our North American mills resulted in lower manufacturing costs and higher shipments this quarter. OSB demand remains strong as US housing starts continue to recover and benchmark OSB prices are currently at multi-year highs.
In Europe, our financial performance is nearly back in line with its long-term quarterly trend despite the currency translation headwind from the weaker Pound Sterling and the negative impact of higher resin prices. Demand from our key UK and German markets remains strong and we expect the improvement in our European business to continue. Our project to modernize and expand the Inverness, Scotland OSB mill to serve this rapidly growing customer demand is well advanced and remains on track to begin production later this year.”
Earlier Norbord resumed production at its OSB mill in Canada.
The company is an international producer of wood-based panels with assets of around USD 1.8 billion, employing approximately 2,600 people at 17 plant locations in the United States, Europe and Canada. Norbord is one of the world’s largest producers of oriented strand board (OSB). In addition to OSB, Norbord manufactures particleboard, medium density fibreboard (MDF) and related value-added products.