Jul 25, 2005. /Lesprom Network/. Norbord Inc. reported continued strong financial performance with annualized return on equity of 45% in the quarter and 58% year-to-date. The company recorded second quarter earnings of $67 million compared to earnings of $127 million during second quarter 2004. Earnings for the six months were $151 million compared with $208 million in the same period last year. "Our continued focus on optimizing the performance of our existing assets and containing costs through margin improvement initiatives has led to another quarter of strong results," said Barrie Shineton, President and CEO of Norbord Inc. "Return on equity of 45% represents an excellent return to shareholders. We continue to believe that 2005 will be a good year for Norbord." Norbord re-purchased approximately 2.1 million shares valued at $18 million under the normal course issuer bid during the quarter. Since November 2004, the company has re-purchased a total of 5.7 million shares valued at $54 million. The company recorded second quarter earnings per share of $0.45 (excluding impact of preferred share redemption) compared to $0.84 during second quarter 2004. Year-to-date, earnings per share were $1.00 (excluding impact of preferred share redemption) compared to $1.38 during the same period last year. During the second quarter, Norbord generated cash flow from operating activities of $98 million, or $0.67 per common share. Capital spending amounted to $30 million in the second quarter, including $10 million for the Cordele expansion project. Annualized return on equity was 45% and net debt was $356 million. The margin improvement program delivered $8 million year-to-date relative to 2004, measured at constant prices and exchange rates. OSB production increased 3% in the second quarter and 7% year-to-date on a like-for-like basis over the same period last year. Including acquisitions, OSB production increased 9% in the second quarter and 16% year-to-date compared to 2004. Fundamentals continue to support a robust housing market in North America, which led to strong demand for OSB. North Central OSB prices averaged $297 during the second quarter compared to $364 in the previous quarter and $437 in the second quarter of 2004. While prices have softened, they remained at 25% above the five-year average North Central price during the quarter. The Norbord Inc. Board of Directors declared a quarterly dividend of CAD 0.10 per common share, payable on September 21, 2005 to shareholders of record on September 1, 2005. Norbord Inc. is an international producer of wood-based panels with assets of $1.3 billion. It employs approximately 2,900 people at 16 plant locations in the United States, Europe and Canada. Norbord Inc is one of the world's largest producers of oriented strand board (OSB). In addition to OSB, it manufactures particleboard, medium density fiberboard (MDF), hardwood plywood, I-joists and related value-added products.