Investors

Norbord’s business strategy is focused entirely on the wood panels sector – in particular OSB – in North America and Europe. Our strategy is composed of the following six key components:

  1. Develop world class safety culture.
  2. Pursue growth in OSB.
  3. Own high-quality assets with low-cost positions.
  4. Maintain a margin-focused operating culture.
  5. Focus on growth customers.
  6. Allocate capital with discipline.

Norbord is of the view that the successful execution of this strategy will provide real value for our shareholders over the cycle. The information posted on this section of the website was accurate at the time of posting but may have been superseded by subsequent disclosures.

Summary of Financial Performance

(all amounts have been restated for the Merger, except where indicated)
US$ millions, unless otherwise noted
Three months ended Six months ended
2nd Qtr
2016
2nd Qtr
2015
Jun 25
2016
Jun 27
2015
Key Performance Metrics
Return on capital employed (ROCE) 26% 5% 23% 5%
Return on equity (ROE) 31% -9% 24% -9%
Cash provided by (used for) operating activities $83 $(3) $86 $(55)
Cash provided by (used for) operating activities, per share $0.97 $(0.04) $1.01 $(0.64)
Sales and Earnings
Sales $447 $365 $831 $716
Operating income (loss) 67 (4) 106 (10)
Adjusted EBITDA 94 19 155 35
Earnings (loss) 44 (23) 67 (60)
Adjusted earnings (loss) 42 (12) 62 (26)
Per common share
Earnings (loss), basic and diluted $.51 $(0.27) $0.78 $(0.70)
Adjusted earnings (loss), basic and diluted $0.49 $(0.14) $0.73 $(0.30)
Dividends declared(1) $0.10 $0.25 $0.20 $0.50
Select Balance Sheet Data
Operating working capital $163 $151 $163 $151
Total working capital 174 163 174 163
Total assets 1,654 1,670 1,654 1,670
Net debt, for financial covenant purposes(2) 751 749 751 749
Shareholders’ equity 553 547 553 547
Shipments (MMsf-3/8″)
North America 1,487 1,375 2,824 2,629
Europe 459 438 894 862
Indicative Average OSB
Average OSB price – North Central ($/Msf-7/16″) $264 $193 $245 $193
Average OSB price – South East ($/Msf-7/16″) $245 $174 $230 $175
Average OSB price – Western Canada ($/Msf-7/16″) $242 $152 $217 $156
Average OSB price – Europe (€/m3)(3) €237 €218 €234 €224
Net debt to total capitalization
Net debt to total capitalization, market basis(2) 31% 30% 31% 30%
Net debt to total capitalization, book basis(2) 48% 50% 48% 50%
(1)  Dividends declared per share stated in Canadian dollars.
(2)  2014 and Q1-2015 figures have not been restated for the Merger as financial covenants pre-Merger were based on Norbord on a standalone basis.
(3)  European indicative average OSB price represents the gross delivered price to the largest Continental market.