Improved first quarter results from Norbord
By Norbord Inc.
April 30, 2013, Toronto, Ont. – Norbord Inc. released the results of its 2013 first quarter, reporting improvements over its previous quarters.
Norbord reported EBITDA of $111 million, a $90 million improvement over the first quarter of 2012 and a $41 million improvement over the prior quarter.
North American operations generated EBITDA of $106 million in the first quarter of 2013 versus $14 million and $67 million in the first and fourth quarters of 2012. European operations generated EBITDA of $10 million in the first quarter of 2013 versus $11 million and $9 million in the first and fourth quarters of 2012.
The company recorded $67 million of earnings ($1.26 per share diluted) in the first quarter of 2013 compared to break-even in the first quarter of 2012 and $38 million ($0.76 per share diluted) in the fourth quarter of 2012.
The board of directors has approved a new variable dividend policy which targets the pay-out to shareholders of a portion of expected future free cash flow through the cycle. For 2013, the dividend is targeted at CA $0.60 per share per quarter, which amounts to an annualized dividend of CA $2.40 per share. Norbord’s liquidity is improving, with cash of $158 million on the balance sheet and undrawn bank and securitization lines of $342 million at quarter-end. The Company’s balance sheet is deleveraging quickly with net debt of just $285 million, representing 37 per cent of total capitalization, and rapidly approaching the bottom of the Company’s target range over the cycle.
In response to increased customer demand for OSB (oriented strand board), Norbord continues to staff up and prepare its curtailed mill in Jefferson, Texas for restart by mid-2013. The mill has been mothballed since the first quarter of 2009 and represents nine per cent of the Company’s 4.4 billion square feet (3/8-inch basis) of North American OSB capacity.
Norbord will continue to monitor market conditions, but does not currently expect to restart its curtailed mills in Huguley, Alabama or Val-d’Or, Quebec in 2013.
To see the full release visit, www.norbord.com.