Norbord Inc., the world’s largest producer of oriented strand board (OSB), reported Adjusted EBITDA of USD 36 million in the second quarter of 2019, a sharp drop compared to USD 273 million in the second quarter of 2018.
The decrease was primarily due to lower North American OSB prices.
North American operations generated Adjusted EBITDA of USD 18 million compared to USD 256 million in the same quarter last year.
European operations delivered Adjusted EBITDA of USD 21 million, unchanged versus same quarter last year.
Norbord recorded an Adjusted loss of USD 8 million in the second quarter of 2019, compared to Adjusted earnings of USD 167 million in the second quarter of 2018.
“US homebuilding demand continued to be held back by affordability concerns and persistent recordbreaking wet weather,” said Peter Wijnbergen, Norbord’s President and CEO. “For the third quarter in a row, we took extensive downtime across our North American mills which negatively impacted our production volumes and manufacturing costs. We also made the difficult decision to indefinitely curtail our 100 Mile House, BC mill starting in August as the mill is no longer viable due to a lack of wood supply at economic prices.”
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