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 The information posted on this section of the website was accurate at the time of posting but may have been superseded by subsequent disclosures.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 Nine months ended
3rd Qtr
2018		 3rd Qtr
2017		 Sep 29
2018		 Sep 30
2017
Sales and Earnings
Sales $640 $578 $1,923 $1,581
Operating income 175 169 550 377
Adjusted EBITDA(1) 211 200 654 468
Earnings 130 130 399 276
Adjusted earnings (1) 123 121 386 266
Per common share
Earnings, basic $1.50 $1.51 $4.61 $3.21
Earnings, diluted $1.49 $1.50 $4.58 $3.18
Adjusted earnings, basic(1) $1.42 $1.40 $4.46 $3.09
Adjusted earnings, diluted(1) $1.41 $1.39 $4.43 $3.07
Dividends declared(2) $4.50 $0.50 $5.70 $0.90
Select Balance Sheet Data
Operating working capital $173 $156 $173 $156
Total working capital 321 245 321 245
Total assets 2,130 1,951 2,130 1,951
Long-term debt 549 548 549 548
Net debt, for financial covenant purposes(1) 377 449 377 449
Shareholders’ equity 1,042 898 1,042 898
Net debt to total capitalization, market basis(1) 10% 15% 10% 15%
Net debt to total capitalization, book basis(1) 23% 28% 23% 28%
Shipments (MMsf-3/8″)
North America 1,687 1,537 4,882 4,504
Europe 467 474 1,373 1,427
Indicative Average OSB Price
North Central ($/Msf-7/16″) $363 $409 $386 $344
South East ($/Msf-7/16″) $305 $354 $352 $322
Western Canada ($/Msf-7/16″) $281 $388 $348 $326
Europe (€/m3)(3) € 305 € 233 € 293 € 243
Key Performance Metrics
Return on capital employed (ROCE)(1) 51% 52% 54% 42%
Return on equity (ROE)(1) 44% 58% 50% 46%
Cash provided by operating activities $228 $203 $482 $386
Cash provided by operating activities, per share(1) $2.63 $2.36 $5.57 $4.48
(1) Non-IFRS measure; see the Non-IFRS Financial Measures section in Norbord’s Q2 2018 Management’s Discussion and Analysis (MD&A) dated October 31, 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.