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 The information posted on this section of the website was accurate at the time of posting but may have been superseded by subsequent disclosures.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 Year ended
4th Qtr
2016
4th Qtr
2015
Dec 31
2016
Dec 31
2015
Sales and Earnings
Sales $482 $415 $1,766 $1,509
Operating income (loss) 87 33 280 31
Adjusted EBITDA(1) 114 57 383 122
Earnings (loss) 61 13 183 (56)
Adjusted earnings (loss)(1) 55 16 175 (14)
Per common share
Earnings (loss), basic and diluted(2) $.71 $0.15 $2.14 $(0.66)
Adjusted earnings (loss), basic and diluted(1,3) $0.64 $0.19 $2.04 $(0.17)
Dividends declared(4) $0.10 $0.10 $0.40 $0.70
Select Balance Sheet Data
Operating working capital $118 $125 $118 $125
Total working capital 278 134 278 134
Total assets 1,799 1,635 1,799 1,635
Long-term debt(5) 746 745 746 745
Net debt, for financial covenant purposes(1) 619 751 619 751
Shareholders’ equity 650 519 650 519
Net debt to total capitalization, market basis(1) 25% 32% 25% 32%
Net debt to total capitalization, book basis(1) 41% 51% 41% 51%
Shipments (MMsf-3/8″)
North America 1,601 1,459 5,888 5,497
Europe 447 425 1,779 1,740
Indicative Average OSB Price
Average OSB price – North Central ($/Msf-7/16″) $285 $242 $269 $209
Average OSB price – South East ($/Msf-7/16″) $263 $221 $245 $187
Average OSB price – Western Canada ($/Msf-7/16″) $236 $204 $234 $169
Average OSB price – Europe (€/m3)(6) €230 €226 €233 €224
Key Performance Metrics
Return on capital employed (ROCE)(1) 30% 15% 27% 9%
Return on equity (ROE)(1) 33% 11% 30% (2)%
Cash provided by (used for) operating activities $130 $56 $313 $24
Cash provided by (used for) operating activities, per share(1) $1.52 $0.66 $3.64 $0.28
(1) Non-IFRS measure; see the Non-IFRS Financial Measures section in Norbord’s 2016 Management’s Discussion and Analysis dated February 2, 2017 for a quantitative reconciliation of these non-IFRS measure to the most directly comparable IFRS measure.
(2) Basic and diluted earnings (loss) per share are the same except diluted earnings per share for 2016 is $2.13.
(3) Basic and diluted Adjusted earnings (loss) per share are the same except diluted Adjusted earnings per share for 2016 is $2.03.
(4) Dividends declared per share stated in Canadian dollars.
(5) Includes current and non-current long-term debt.
(6) European indicative average OSB price represents the gross delivered price to the largest continental market.