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 The information posted on this section of the website was accurate at the time of posting but may have been superseded by subsequent disclosures.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 Year ended
1st Qtr
2016
1st Qtr
2015
Dec 31
2015
Dec 31
2014
Key Performance Metrics
Return on capital employed (ROCE) 18% 4% 9% 8%
Return on equity (ROE) 16% -10% -2% -2%
Cash provided by (used for) operating activities $3 $(52) $24 $16
Cash provided by (used for) operating activities, per share $0.04 $(0.61) $0.28 $0.19
Sales and Earnings
Sales $384 $351 $1,509 $1,601
Operating income (loss) 39 (6) 31 30
Adjusted EBITDA 61 16 122 115
Earnings (loss) 23 (37) (56) (39)
Adjusted earnings (loss) 20 (14) (14) (17)
Per common share
Earnings (loss), basic and diluted $.27 $(0.43) $(0.66) $0.46
Adjusted earnings (loss), basic and diluted $0.23 $(0.16) $(0.17) $(0.20)
Dividends declared(1) $0.10 $0.25 $0.70 $2.40
Select Balance Sheet Data
Operating working capital $172 $146 $125 $106
Total working capital 185 196 134 200
Total assets 1,670 1,738 1,633 1,802
Net debt, for financial covenant purposes(2) 749 442 751 418
Shareholders’ equity 527 566 519 659
Shipments (MMsf-3/8″)
North America 1,337 1,254 5,497 5,266
Europe 435 424 1,740 1,663
Indicative Average OSB
Average OSB price – North Central ($/Msf-7/16″) $226 $193 $209 $218
Average OSB price – South East ($/Msf-7/16″) $215 $175 $187 $188
Average OSB price – Western Canada ($/Msf-7/16″) $191 $159 $169 $196
Average OSB price – Europe (€/m3)(3) €230 €232 €224 €262
Net debt to total capitalization
Net debt to total capitalization, market basis(2) 32% 29% 32% 26%
Net debt to total capitalization, book basis(2) 50% 53% 51% 51%
(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.