Norbord Inc.Posted Adjusted Loss of $9 Million in Third Quarter

SEATTLE (Scrap Monster): Norbord Inc. announced results for third quarter of 2019. The company reported adjusted EBITDA of $33 million during the quarter. This compares with $36 million in the prior quarter and $211 million in the corresponding third quarter in 2018. The quarter-on-quarter decline is mainly on account of the lower prices and shipment volume of panels in Europe. Meantime, lower North American OSB prices contributed to the year-on-year decline.

Norbord’s adjusted loss increased from $8 million or $0.10 per share in second quarter to $9 million or $0.11 per share in third quarter of 2019. The company had reported adjusted earnings of $123 million or $1.41 per diluted share in the third quarter of 2018.

North American OSB shipments increased 4% over the previous quarter. In Europe, seasonal demand slowdown resulted in shipment declines by 7% and 6% when compared with the prior quarter and the year-before quarter respectively. The capital investments totalled $33 million in the third quarter.

Peter Wijnbergen, Norbord’s President and CEO noted that the company has started to see improvement in Q3, recovering from the recent negative impacts caused by affordability concerns and extremely bad weather conditions on U.S. housing starts. However, the improvement in housing fundamentals has not yet produced significant recovery in OSB prices, he added.