Note: Financial references in US dollars unless otherwise indicated.
Adjusted earnings more than doubled from 2016 to $4.49 per diluted share Adjusted EBITDA increased 75% year-over-year to $672 million Record production at nine mills Commenced operations at both Huguley, Alabama and Inverness, Scotland mills Matched best-ever safety performance with OSHA total recordable injury rate of 0.74 Declared quarterly dividend of C $0.60 per share for shareholders of record on March 1, 2018
TORONTO, Feb. 2, 2018 /PRNewswire/ – Norbord Inc. (TSX and NYSE: OSB) today reported Adjusted EBITDA of $204 million for the fourth quarter of 2017 versus $200 million in the prior quarter and $115 million in the fourth quarter of 2016. For the full-year 2017, Norbord recorded Adjusted EBITDA of $672 million compared to $385 million in 2016 on higher North American OSB prices and shipment volumes. North American operations generated Adjusted EBITDA of $638 million compared to $352 million in the prior year and European operations delivered Adjusted EBITDA of $41 million, in line with the prior year.
“2017 was an outstanding year for Norbord and we delivered record Adjusted EBITDA of $672 million,” said Peter Wijnbergen, Norbord’s President and CEO. “US housing starts continued to improve, led by stronger growth in the single-family segment, driving increased North American OSB demand and prices. Our European business had another solid year due to record sales volume and improved prices for all our panel products across our key markets.”
“Norbord’s mills in both North America and Europe continued to deliver strong operational results, with nine of our 15 operating mills setting annual production records in 2017. We matched our best-ever safety performance, even as we completed two complex strategic capital projects at our mills in Huguley, Alabama and Inverness, Scotland. Finally, the strong operating cash flow we generated this year and the long-term debt we permanently repaid significantly strengthened our balance sheet, while reinvesting more than $250 million in our mills and returning $101 million in dividends to our shareholders.”
“Looking ahead, we have great momentum as we enter 2018. Demand in all our core markets remains strong. In North America, we expect new home construction activity and other OSB end uses to support further demand growth, keeping pace with the additional industry supply that is being brought back online. Meanwhile, our European business is poised for improved earnings next year as OSB