TORONTO – Norbord Inc. (TSX:NBD) says lower prices for orient-strand board wood panels amid soft demand from the U.S. house-construction sector depressed its third-quarter net sales and drove down its profit.
The Toronto-based company, which reports in U.S. currency, had only $5 million of net income, or nine cents per share, in its third quarter — including a $5-million non-recurring income tax recovery.
That’s a dramatic fall from the year-earlier quarter when Norbord’s net income was $27 million or 50 cents per share, including a $9 million non-recurring income tax recovery.
Excluding taxes and other items, Norbord’s adjusted profit was $15 million — down $30 million from $45 million in earnings before interest, taxes, depreciation and amortization (EBITDA).
Norbord’s sales dropped to $302 million from $311 million a year earlier even though volume increased both in Europe and North America, which is its biggest market.
Analysts had estimated $25 million of EBITDA, eight cents per share of net income and $297 million of revenue, according to data compiled by Thomson Reuters.