Norbord’s European division reports “best results ever” in Q23 August 2018
Norbord’s European operations recorded a more than doubling of EBITDA year-over-year in Q2 to US$21m, reflecting robust markets.
The company said the performance was its best result ever in local currency terms, as “robust demand growth in our key markets supported strong prices”.
In local currency terms, average panel prices were up 27% versus the same quarter last year and up 5% from the prior quarter.
In Europe, Norbord's shipments were 6% lower than the same quarter last year and 3% lower than the prior quarter due to shipment timing. The European mills produced at 89% of stated capacity in the quarter compared to 105% in the same quarter last year and 86% in the prior quarter.
Capacity utilization increased quarter-over-quarter due to improved productivity, but decreased year-over-year due to the restated annual production capacity to reflect the new OSB continuous press line at the Inverness, Scotland mill that was substantially completed in the fourth quarter of 2017.
Production from the expanded Inverness mill will not significantly increase until 2019 when the new finishing line installation and commissioning are complete.
The original two press lines were demolished during the second quarter of 2018 and a new finishing end will be installed during the second half of 2018.
Total capital spending to-date for the project is US$142m. The project cost is expected to total $145 million, 7% above the US$135m budget due to significant fluctuations in the relative values of the Pound Sterling, Euro and US dollar currencies over the two-year life of the project.
Group wide, including all world operations, Norbord recorded adjusted EBITDA of US$273m.