Norbord recorded $53 million of earnings ($0.99 per share diluted) in the 2Q 2013 compared to $6 million ($0.14 per share diluted) in the same quarter last year and $67 million ($1.26 per share diluted) in the prior quarter.
"In North America, we experienced a significant OSB price correction in the 2Q," said Barrie Shineton, President and CEO. "Although prices were expected to adjust after reaching record levels in the 1Q, I was surprised by the degree of the correction. OSB prices are now recovering and I believe this trend will continue as the fundamentals supporting US new home construction remain very strong."
"In Europe, panel demand and prices, particularly for OSB and particleboard, improved again this quarter and are reflected in our financial results. And, we are beginning to see early signs of a fundamental turnaround in UK housing. This is encouraging as the UK continues to be Norbord's most important European market."
In North America, 2Q OSB shipment volumes were flat year-over-year but increased 7% quarter-over-quarter due to improved mill operating performance and fewer scheduled annual maintenance shuts. Norbord's OSB mills produced at approximately 75% of installed capacity, unchanged from a year ago and up 5% versus the prior quarter. Excluding the three mothballed mills, Norbord produced at 105% of stated capacity compared to 95% a year ago and in the prior quarter.
In Europe, shipments were 6% higher than the same quarter last year and 2% higher than the prior quarter as panel demand improved. Norbord's European panel mills produced at approximately 100% of capacity in both the first and second quarters of 2013, compared to 95% in the same quarter last year.
Norbord is one of the world's largest producers of oriented strand board (OSB). In addition to OSB, Norbord manufactures particleboard, medium density fibreboard (MDF) and related value-added products.