Published on : Friday, July 26, 2013
Norbord Inc. has reported EBITDA of $102 million in the second quarter of 2013, compared to $31 million in the same quarter last year and $111 million in the first quarter of 2013. North American operations generated EBITDA of $92 million in the quarter versus $26 million last year and $106 million in the prior quarter. European operations generated EBITDA of $12 million in the quarter versus $9 million last year and $10 million in the prior quarter.
Norbord recorded $53 million of earnings in the second quarter of 2013 compared to $6 million in the same quarter last year and $67 million in the prior quarter.
“In North America, we experienced a significant OSB price correction in the second quarter,” said Barrie Shineton, President and CEO. “Although prices were expected to adjust after reaching record levels in the first quarter, I was surprised by the degree of the correction. OSB prices are now recovering and I believe this trend will continue as the fundamentals supporting US new home construction remain very strong.”
“In Europe, panel demand and prices, particularly for OSB and particleboard, improved again this quarter and are reflected in our financial results. And, we are beginning to see early signs of a fundamental turnaround in UK housing. This is encouraging as the UK continues to be Norbord’s most important European market.”
June year-to-date US housing starts and permits were both 24% higher than the same period last year. Single family starts were 20% better. Other key housing metrics, including home prices, existing home sales and the inventory of foreclosed homes, continued to improve. The consensus forecast of US housing economists remains at 1.0 million starts for 2013, a 28% increase over last year.
Second quarter European panel prices were 6% higher than the same quarter last year and 2% better than the prior quarter.