Norbord earns $27 million, 50 cents per share, in third quarter

TORONTO – Norbord Inc. (TSX:NBD) says it recorded $27 million in earnings during third quarter, or 50 cents per diluted share _ virtually unchanged from a gain of $27 million and 59 cents per share in the same quarter last year.

Earnings in the latest quarter include a $9 million one-time non-recurring income tax recovery.

In North America, Norbord says third quarter shipments of oriented strand board (OSB) rose 11 per cent year-over-year due to improved mill operating performance and the ramp-up of the Jefferson, Texas mill.

Norbord’s OSB mills produced at approximately 80% of installed capacity, compared to 75% in the prior quarter and 70% in the same quarter last year.

Excluding the two mothballed mills in Huguley, Ala., and Val-d’Or, Que., Norbord produced at approximately 100 per cent of capacity. It does not currently expect to restart its curtailed mills in 2014.

In Europe, panel shipments were flat year-over-year. Total shipments, including flat-pack furniture, were three per cent lower than the same quarter last year reflecting the usual summer slowdown.

“I am pleased with our third quarter result in spite of the volatile OSB pricing we’ve experienced in North America this year,” said president and CEO Barrie Shineton.

“OSB prices bottomed in September and we are now seeing a gradual, positive improvement that I believe will continue into the fourth quarter. Demand from our customers remains strong, their inventories are lean and Norbord has a healthy four-week order file.”