Norbord Inc. reported Adjusted EBITDA of $42 million in the 1Q 2019 compared to $70 million in the 4Q 2018 and $170 million in the 1Q 2018. The decrease versus both comparative periods was primarily due to lower North American oriented strand board (OSB) prices, as the company said in the press release received by Lesprom Network.
“The pace of US housing construction began to decelerate in the second half of last year and this trend carried over into the 1Q,” said Peter Wijnbergen, Norbord’s President and CEO. “Further, the seasonally slowest time of year was exacerbated by unusually wet weather in many of our North American operating regions. Combined, these factors led to very disappointing market conditions and prompted us to take extensive downtime across our North American mills. This negatively impacted our production volumes and manufacturing costs.”
Norbord recorded an Adjusted loss of $2 million or $0.02 per share (basic and diluted) in the 1Q 2019 compared to Adjusted earnings of $26 million or $0.30 per share (basic and diluted) in the 4Q 2018 and $96 million or $1.10 per diluted share ($1.11 per basic share) in the 1Q 2018.
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.