Norbord posts net quarterly loss of $7 million

Norbord Inc. has posted a net loss of $7 million in its third quarter. In comparison, Norbord recorded earnings of $37 million or $0.85 per share in the prior quarter and a loss of $7 million or $0.16 per share in the same quarter last year.

"I'm pleased that we were able to adjust quickly to the OSB price correction in Q3 as demand stalled when the home buyer tax incentives expired and new home market activity slowed," said Barrie Shineton, President and CEO. "By limiting our exposure to the new home construction segment, we increased both production and shipment volumes overall versus the same period last year. In the UK, we continued to benefit from the jump in construction activity that carried over from last quarter and supported strong panel pricing, particularly OSB."

"Our 2010 results will be much improved over the prior year. Our balance sheet is in good shape and we have strong liquidity. We expect markets to have no real momentum until later in 2011 when improvements in both new home construction and total OSB demand should be apparent."

Norbord's operating North American OSB mills ran at approximately 90% of their capacity in the third quarter compared to 100% in the prior quarter and 85% in the same quarter last year. Norbord's two indefinitely closed mills in Texas and Alabama have not operated since the first quarter of 2009 and represent 20% of the Company's North American OSB capacity. All of Norbord's European mills operated at full capacity again this quarter versus 100% in the prior quarter and 75% in the same quarter last year. As market and economic conditions warrant, Norbord expects to curtail production when necessary to conserve cash, manage inventory and maximize operating results.

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Norbord reports third quarter 2010 results (Norbord)