Wood-based panels producer Norbord has posted its first annual profits since 2006.
The company reported net profits of US$17m last year, compared to a net loss of US$58m in 2009.
Net sales reached US$892m (2009: US$718m).
“After a lower start in the first quarter, 2010 turned out to be a much better year for Norbord,” said president and CEO Barrie Shineton.
“North American OSB prices improved, particularly in the second quarter when they peaked at almost US$400. Panel demand was stronger, allowing our North American mills to operate more of their capacity and our European mills to run flat out.”
North American OSB prices rose 34% on the year, while European prices increased by 25%.
Norbord said its European operations had an “excellent year”, generating more than double the cash flow of 2009.
The company predicts overall OSB demand in 2011 will be similar to 2010, with small changes in either supply or demand likely to result in ongoing price volatility.
“It’s my view that the general economic news will improve and unemployment levels will fall throughout this year, leading to better new home construction activity and improving OSB demand and prices in the second half,” said Mr Shineton.