Norbord's European division delivers three-year profits high

The division, which comprises three UK panel mills and a factory in Belgium, generated EBITDA of US$13m (2013: US$10m).

"Panel demand is strengthening and our mills ran very well, supporting almost 10% higher shipments than the same quarter a year ago," said Norbord president and CEO Peter Wijnbergen. "I expect this trend of improved performance to continue throughout the remainder of the year as our core markets recover."

Norbord's European panel mills achieved a quarterly production record - producing at approximately 110% of stated capacity during the first quarter (2013: 100%).

Group-wide, Norbord reported EBITDA of US$27m, down from US$111m a year ago, although last year's quarterly figure was heavily influenced by exceptional OSB prices that were the highest for 10 years.

Severe weather across North America in January and February delayed housebuilding, resulting in weaker OSB demand and prices.
But Norbord says homebuilding is now taking hold, leading to stronger OSB consumption.

The North Central benchmark OSB prices averaged US$219 per thousand square feet in the first quarter, compared to US$417msf a year ago.

In Europe, first quarter panel prices held firm and unchanged compared with the previous quarter and 4% higher than a year ago.

Norbord is very optimistic about long-term market growth potential in Europe and is assessing its options to expand OSB capacity.