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 The information posted on this section of the website was accurate at the time of posting but may have been superseded by subsequent disclosures.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
2018		 4th Qtr
2017		 Dec 31
2018		 Dec 31
2017
Sales and Earnings
Sales $501 $596 $2,424 $2,177
Operating (loss) income (46) 172 504 549
Adjusted EBITDA(1) 70 204 724 672
(Loss) Earnings (28) 160 371 436
Adjusted earnings (1) 26 123 412 389
Per Common Share
(Loss) Earnings, basic $(0.32) $1.85 $4.29 $5.06
(Loss) Earnings, diluted $(0.32) $1.84 $4.27 $5.03
Adjusted earnings, basic(1) $0.30 $1.42 $4.76 $4.51
Adjusted earnings, diluted(1) $0.30 $1.41 $4.74 $4.49
Dividends declared(2) $0.60 $0.60 $6.30 $1.50
Select Balance Sheet Data
Operating working capital(1) $88 $127 $88 $127
Total working capital(1) 188 295 188 295
Total assets 1,942 2,103 1,942 2,103
Long-term debt 550 548 550 548
Net debt, for financial covenant purposes(1) 435 333 435 333
Shareholders’ equity 823 1,019 823 1,019
Net debt to total capitalization, market basis(1) 13% 11% 13% 11%
Net debt to total capitalization, book basis(1) 28% 21% 28% 21%
Shipments (MMsf-3/8″)
North America 1,602 1,562 6,484 6,066
Europe 452 440 1,825 1,867
Indicative Average OSB Price
North Central ($/Msf-7/16″) $243 $379 $351 $353
South East ($/Msf-7/16″) $203 $355 $315 $330
Western Canada ($/Msf-7/16″) $184 $328 $307 $326
Europe (€/m3)(3) € 299 € 262 € 294 € 239
Key Performance Metrics
Return on capital employed (ROCE)(1) 17% 52% 47% 45%
Return on equity (ROE)(1) 10% 51% 42% 47%
Cash provided by operating activities $126 $222 $608 $608
Cash provided by operating activities, per share(1) $1.46 $2.57 $7.03 $7.05
(1) Non-IFRS measure; see the Non-IFRS Financial Measures section in Norbord’s 2018 Management’s Discussion and Analysis (MD&A) dated January 31, 2019 for a quantitative reconciliation of the non-IFRS Measures 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.