The Canadian Press - ONLINE EDITION

Toronto-based Norbord Inc. reports lower Q2 earnings of $11 million

  • Print

TORONTO - Norbord Inc. (TSX:NBD) reported a profit of $11 million in its latest quarter, down from $53 million a year ago, as sales fell compared with the same quarter last year.

The Toronto-based company earned 20 per diluted share in the quarter, compared with 99 cents per diluted share, in the same quarter last year.

The company, which makes wood panels for the home building market, said sales fell to $311 million compared with $365 million year-over-year.

"In North America, homebuilding activity continues to improve," president and CEO Peter Wijnbergen said in a statement on Tuesday.

"But the pace has been held back by labour availability and a lack of entry-level buyers and OSB prices have been disappointing," he said referring to prices for oriented strand board, wood panels that are used in home construction.

Norbord said it has begun rebuilding the press line at its mill in Huguley, Ala., to prepare it for a restart, but has not set a date for a return to operations. Norbord said it will restart the plant only when there's sufficient demand from customers.

The company also said it doesn't currently expect to restart its mill in Val-d'Or, Que., this year, but will continue to monitor market conditions.

Norbord noted that the crisis in the Ukraine has hurt demand in Eastern Europe and some production of oriented strand board has been redirected into its markets in Western Europe.

Norbord's shipments in Europe were three per cent lower than the same quarter last year.

Norbord has 13 plants in the United States, Europe and Canada.

RBC Dominion Securities analyst Paul Quinn said the results were higher than expected.

"Management remains optimistic on the U.S. housing recovery in 2014, despite the slow start, and expects stable demand and pricing for the next few months," Quinn said in a note to clients.

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

Sanders gives other candidates a reality check

View more like this

Photo Store Gallery

  • Down the Hatch- A pelican swallows a fresh fish that it caught on the Red River near Lockport, Manitoba. Wednesday morning- May 01, 2013   (JOE BRYKSA / WINNIPEG FREE PRESS)
  • Horses enjoy a beautiful September morning east of Neepawa, Manitoba  - Standup Photo– Sept 04, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)

View More Gallery Photos

Poll

Do you think e-cigarettes should be banned by the school division?

View Results

Ads by Google