Panel producer Norbord recorded a C$7m group loss during the third quarter but said it had managed to adjust quickly to an OSB price correction in North America.
The company said demand stalled in the third quarter when the homebuyer tax incentives expired and new home market activity slowed.
North American operations generated EBITDA of C$4m, down from C$63m in the previous quarter, while European operations recorded EBITDA of C$10m, the same level as the second quarter.
“By limiting our exposure to the new home construction segment, we increased both production and shipment volumes overall versus the same period last year,” said Norbord CEO Barrie Shineton.
“In the UK, we continued to benefit from the jump in construction activity that carried over from the last quarter and supported strong panel pricing, particularly OSB.”
European OSB prices improved 9% quarter-on-quarter and by 37% year-on-year. Chipboard and MDF prices rose by 3% and 8% respectively over the same periods.
Norbord expects its 2010 results to be “much improved” over 2009.
“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,” said Mr Shineton.
