Jul 29, 2014. /Lesprom Network/. Norbord Inc. reported EBITDA of $33 million in the 2Q 2014 compared to $27 million in the 1Q 2014 and $102 million in the 2Q 2013. The year-over-year change is due to the exceptional North American OSB prices in the first half of 2013, as the company said in the press release received by Lesprom Network.

North American operations generated EBITDA of $24 million in the quarter versus $17 million in the prior quarter and $92 million in the same quarter last year. European operations generated EBITDA of $12 million in the second quarters of both 2014 and 2013 versus $13 million in the prior quarter.

"In North America, homebuilding activity continues to improve. But the pace has been held back by labour availability and a lack of entry-level buyers and OSB prices have been disappointing," said Peter Wijnbergen, President and CEO. "However, we are not discouraged. We always expected it would take time for OSB demand growth to absorb the additional capacity that has been ramping up since early 2013. At Norbord, demand from our key customers in all core segments - new home construction, home improvement and industrial - continues to grow, driving 10% higher shipments so far this year. At the same time, our OSB cash production costs are declining due to improved productivity and lower raw material usages."

Norbord recorded earnings of $11 million in the 2Q 2014 compared to $7 million in the prior quarter and $53 million in the second quarter of 2013.