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 The information posted on this section of the website was accurate at the time of posting but may have been superseded by subsequent disclosures.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

US$ millions, unless otherwise noted Three months ended Six months ended
2nd Qtr
2018
2nd Qtr
2017
Jun 30
2018
Jul 1
2017
Sales and Earnings
Sales $707 $536 $1,283 $1,003
Operating income 236 135 375 208
Adjusted EBITDA(1) 273 165 443 268
Earnings 174 97 269 146
Adjusted earnings (1) 167 95 263 145
Per common share
Earnings, basic $2.01 $1.13 $3.11 $1.70
Earnings, diluted $2.00 $1.12 $3.09 $1.69
Adjusted earnings, basic(1) $1.93 $1.10 $3.04 $1.69
Adjusted earnings, diluted(1) $1.92 $1.10 $3.02 $1.67
Dividends declared(2) $0.60 $0.30 $1.20 $0.40
Select Balance Sheet Data
Operating working capital $212 $181 $212 $181
Total working capital 481 187 481 187
Total assets 2,250 1,772 2,250 1,772
Long-term debt 549 547 549 547
Net debt, for financial covenant purposes(1) 276 567 276 567
Shareholders’ equity 1,206 784 1,206 784
Net debt to total capitalization, market basis(1) 8% 20% 8% 20%
Net debt to total capitalization, book basis(1) 16% 36% 16% 36%
Shipments (MMsf-3/8″)
North America 1,674 1,536 3,195 2,967
Europe 445 474 906 953
Indicative Average OSB Price
North Central ($/Msf-7/16″) $426 $330 $398 $312
South East ($/Msf-7/16″) $419 $320 $375 $306
Western Canada ($/Msf-7/16″) $403 $324 $381 $294
Europe (€/m3)(3) € 298 € 230 € 286 € 228
Key Performance Metrics
Return on capital employed (ROCE)(1) 65% 44% 55% 37%
Return on equity (ROE)(1) 58% 51% 48% 41%
Cash provided by operating activities $250 $144 $254 $183
Cash provided by operating activities, per share(1) $2.89 $1.67 $2.94 $2.13
(1) Non-IFRS measure; see the Non-IFRS Financial Measures section in Norbord’s Q2 2018 Management’s Discussion and Analysis (MD&A) dated August 1, 2018 for a quantitative reconciliation of these non-IFRS measure to the most directly comparable IFRS measure

(2) Dividends declared per share stated in Canadian dollars.

(3) European indicative average OSB price represents the gross delivered price to the largest continental market.