Norbord Inc. reported adjusted EBITDA of $138 million for the full-year 2019 compared to $724 million in 2018 on significantly lower realized North American oriented strand board (OSB) prices and shipment volumes, as well as lower European panel prices.
For the full-year 2019, Norbord recorded an adjusted loss of $30 million or $0.37 per share (basic and diluted) versus Adjusted earnings of $412 million or $4.74 per diluted share ($4.76 per basic share) in 2018.
“2019 was a challenging year for Norbord,” said Peter Wijnbergen, Norbord’s President and CEO. “Our financial results were disappointing relative to our record performance in 2018, as the slowdown in US housing starts through most of 2019 decreased North American OSB demand and a slowing of German industrial production put downward pressure on European panel prices. In the face of these challenges, we focused on reducing both costs and production, by indefinitely curtailing operations at our 100 Mile House, British Columbia mill and Line 1 at our Cordele, Georgia mill.”
For the 4Q 2019, Norbord recorded adjusted EBITDA of $27 million versus $33 million in the 3Q 2019 and $70 million in the 4Q 2018. The quarter-over-quarter decline was primarily due to lower shipment volumes attributed to higher downtime, partially offset by modestly higher North American OSB prices.
Source: Lesprom Network