Apr 30, 2013. /Lesprom Network/. Norbord Inc. reported EBITDA of $111 million in the 1Q 2013, a $90 million improvement over the 1Q 2012 and a $41 million improvement over the prior quarter. North American operations generated EBITDA of $106 million in the 1Q 2013 versus $14 million and $67 million in the 1Q and 4Q 2012, respectively. European operations generated EBITDA of $10 million in the 1Q 2013 versus $11 million and $9 million in the 1Q and 4Q 2012, respectively, as the company said in a press release received by Lesprom Network.

Norbord recorded $67 million of earnings ($1.26 per share diluted) in the 1Q 2013 compared to break-even in the 1Q 2012 and $38 million ( $0.76 per share diluted) in the 4Q 2012.

"Our strong 1Q results reflect a broad-based US housing recovery that is accelerating," said Barrie Shineton, President and CEO. "Average North American OSB prices climbed to their highest level in nine years during what is normally the weakest season of the year. We are working hard to bring our Jefferson, Texas mill back up by mid-year in spite of persistent equipment delays and the challenge of recruiting a new workforce. While we will likely see increasing market volatility, I believe improving OSB demand will continue to outstrip supply for at least the rest of this year."

"In Europe, our panel business delivered another quarter of strong numbers in spite of uncertainty in the Eurozone economies. OSB demand in particular is strengthening and we continue to run all our panel mills full out."

"The variable dividend policy we are announcing today reflects the improvement in our operating cash flow over the past year. Norbord now has strong liquidity and is deleveraging quickly with our net debt to total capitalization moving towards the bottom of our target range. We expect to continue delivering significant free cash flow in the near term as the US housing recovery supports increasing demand for OSB."

In North America, OSB shipment volumes increased 4% year-over-year and decreased 3% versus the prior quarter. The quarter-over-quarter decrease is due to scheduled annual maintenance shuts and fewer fiscal days in the 1Q.

Norbord's OSB mills produced at approximately 70% of capacity, up 5% versus the 1Q 2012 and unchanged from the 4Q 2012.

In Europe, shipments were 3% lower than the same quarter last year due to lower retail furniture sales over the holiday period, but shipments increased by 5% over the prior quarter. Norbord's European panel mills produced at approximately 100% of capacity in the quarter, compared to 95% in the same quarter last year and 90% in the prior quarter.

Norbord Inc. is an international producer of wood-based panels with assets of $1 billion. Norbord is one of the world's largest producers of oriented strand board (OSB). In addition to OSB, Norbord manufactures particleboard, medium density fibreboard and related value-added products.