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:
- Develop world class safety culture.
- Pursue growth in OSB.
- Own high-quality assets with low-cost positions.
- Maintain a margin-focused operating culture.
- Focus on growth customers.
- 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 The information posted on this section of the website was accurate at the time of posting but may have been superseded by subsequent disclosures.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 | $88 | $127 | $88 | $127 |
Total working capital | 188 | 295 | 188 | 295 |
Total assets | 1,942 | 2,103 | 1,942 | 2,103 |
Long-term debt | 550 | 548 | 550 | 548 |
Net debt, for financial covenant purposes(1) | 435 | 333 | 435 | 333 |
Shareholders’ equity | 823 | 1,019 | 823 | 1,019 |
Net debt to total capitalization, market basis(1) | 13% | 11% | 13% | 11% |
Net debt to total capitalization, book basis(1) | 28% | 21% | 28% | 21% |
Shipments (MMsf-3/8″) | ||||
North America | 1,602 | 1,562 | 6,484 | 6,066 |
Europe | 452 | 440 | 1,825 | 1,867 |
Indicative Average OSB Price | ||||
North Central ($/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. |