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 The information posted on this section of the website was accurate at the time of posting but may have been superseded by subsequent disclosures.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
2019
4th Qtr
2018
Dec 31
2019
Dec 31
2018
Sales and Earnings
Sales $373 $501 $1,731 $2,424
Operating (loss) income (8) (46) (16) 504
Adjusted EBITDA(1) 27 70 138 724
(Loss) Earnings (12) (28) (42) 371
Adjusted (loss) earnings (1) (11) 26 (30) 412
Per Common Share
(Loss) Earnings, basic $(0.15) $(0.32) $(0.51) $4.29
(Loss) Earnings, diluted $(0.15) $(0.32) $(0.51) $4.27
Adjusted (loss) earnings, basic(1) $(0.13) $0.30 $(0.37) $4.76
Adjusted (loss) earnings, diluted(1) $(0.13) $0.30 $(0.37) $4.74
Dividends declared(2) $0.20 $0.60 $1.40 $6.30
Select Balance Sheet Data
Operating working capital(1) $120 $88 $120 $88
Total working capital(1) 202 188 202 188
Total assets 1,921 1,942 1,921 1,942
Long-term debt(3) 657 550 657 550
Net debt, for financial covenant purposes(1) 655 435 655 435
Shareholders’ equity 704 823 704 823
Net debt to total capitalization, market basis(1) 24% 13% 24% 13%
Net debt to total capitalization, book basis(1) 40% 28% 40% 28%
Shipments (MMsf-3/8″)
North America 1,335 1,602 6,145 6,484
Europe 396 452 1,831 1,825
Indicative Average OSB Price
North Central ($/Msf-7/16″) $223 $243 $210 $351
South East ($/Msf-7/16″) $199 $203 $187 $315
Western Canada ($/Msf-7/16″) $190 $184 $166 $307
Europe (€/m3)(4) € 247 € 299 € 274 € 294
Key Performance Metrics
Return on capital employed (ROCE)(1) 7% 17% 9% 47%
Return on equity (ROE)(1) (6)% 10% (4)% 42%
Cash  provided by (used for) operating activities $28 $126 $19 $608
Cash  provided by (used for) operating activities, per share(1) $0.34 $1.46 $(0.23) $7.03
(1) Non-IFRS measure; see the Non-IFRS Financial Measures section in Norbord’s Q4-2019 Management’s Discussion and Analysis (MD&A) dated February 4, 2020 for a quantitative reconciliation of the non-IFRS measures to the most directly comparable IFRS measures.

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

(3) Includes current and non-current long-term debt.

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