Norbord Inc. reported Adjusted EBITDA of $170 million for the 1Q 2018 versus $103 million in the 1Q 2017 and $204 million in the 4Q 2017. The year-over-year improvement is primarily due to higher North American oriented strand board (OSB) prices and shipment volumes, as well as higher European panel prices. The quarter-over-quarter decrease is due to lower North American OSB price realizations and shipment volumes, as the company says in the press release received by Lesprom Network.
Norbord recorded Adjusted earnings of $96 million or $1.10 per diluted share in the 1Q 2018 versus $50 million or $0.58 per share in the 1Q 2017 and $123 million or $1.41 per diluted share in the 4Q 2017. 1Q 2018 sales up to $576 million from $467 million.
“Our 1Q Adjusted EBITDA result is 65% higher than this time last year and reflects the continued improvement in new home construction activity and other OSB end uses,” said Peter Wijnbergen, Norbord’s President and CEO. “Our mills ran slower in what was a particularly harsh winter, impacting costs; however, the additional production from our recently restarted Huguley, Alabama mill helped mitigate this headwind. At the same time, North American benchmark OSB prices have been unseasonably strong due to steady demand, continued low apparent inventory levels and supply constraints stemming from weather-related logistics challenges, particularly in the west.”
Norbord Inc. is a leading global manufacturer of wood-based panels and the world’s largest producer of oriented strand board (OSB).
