Norbord Inc. reported Adjusted EBITDA of $84 million for the 2Q 2020 compared to $75 million in the 1Q 2020 and $36 million in the 2Q 2019. The quarter-over-quarter increase was primarily due to lower manufacturing costs, partially offset by lower shipment volumes, while the year-over-year increase was primarily due to higher realized North American oriented strand board (OSB) prices, as well as lower manufacturing costs, partially offset by lower shipment volumes.
North American operations generated Adjusted EBITDA of $84 million compared to $68 million in the 1Q 2020 and $18 million in the 2Q 2019, and European operations delivered Adjusted EBITDA of $2 million compared to $10 million in the prior quarter and $21 million in the same quarter last year.
“The 2Q 2020 started slowly as it overlapped with the significant pullback in economic activity that occurred during the early stages of the COVID-19 pandemic. However, we ultimately saw improving demand through the quarter that led to better than expected results. Our Adjusted EBITDA represented our best performance in seven quarters, more than doubling from year-ago levels and improving 12% from the prior quarter,” said Peter Wijnbergen, Norbord’s President & CEO.
Norbord recorded Adjusted earnings of $31 million or $0.38 per share (basic and diluted) versus Adjusted earnings of $21 million or $0.26 per share (basic and diluted) in the 1Q 2020 and an Adjusted loss of $8 million or $0.10 per share (basic and diluted) in the 2Q 2019. Earnings in the current quarter include a $16 million non-cash impairment loss related to idle production assets at the Grande Prairie, Alberta mill.
Norbord Inc. is a leading global manufacturer of wood-based panels and the world’s largest producer of oriented strand board (OSB). In addition to OSB, Norbord manufactures particleboard, medium density fibreboard and related value-added products.
