Wood-based panels producer Norbord Inc. (NBD.TO) reported Friday a narrower loss for the fourth quarter, as the company curtailed a considerable production capacity and reduced overhead costs. The results reflect a weak building material products market and a decline in manufacturing input prices. Looking ahead, Norbord anticipates a more positive building materials market outlook, particularly in Europe. For the fourth quarter, the Ontario, Canada-based company's loss narrowed to US$11 million or US$0.25 per share from US$30 million or US$1.88 per share in the previous year.
Net sales for the quarter increased to US$196 million from US$191 million a year ago. The company noted that both North American and European operations generated improved results in the fourth quarter.
Norbord produces oriented strand board or OSB and manufactures particleboard, medium density fibreboard or MDF and related value-added products.
For the quarter, the company noted that North Central benchmark OSB prices averaged US$172 per Msf, up US$2 per Msf from the prior-year quarter. South East prices were US$154 per Msf, an increase of US$17 per Msf from the year-ago quarter. According to the company, the increase OSB prices was due to weather-related log shortages and low distribution chain inventories.
For the full year, the company's loss narrowed to US$58 million or US$1.35 per share from US$115 million or US$7.62 per share in the prior year. Net sales for the year declined to US$718 million from US$943 million in the preceding year. Barrie Shineton, president and chief executive officer said, "As expected, markets for our building material products were weak again this year as the historic collapse in both US and UK housing activity and the fallout from the global financial market breakdown continued through most of 2009." Norbord said its North American OSB mills operated at approximately 60% of capacity in both the fourth quarter and the full year, compared to 80% of capacity last year and it operated at nearly 80% of its European capacity throughout the year. According to the company, its Margin Improvement Program helped to improve its competitive position throughout the year, and generated savings of US$29 million in 2009 and more than US$136 million over the past five years. The company added that its European mills will benefit from economic recovery within the UK. Norbord said it closed two of its OSB mills for an indefinite period of time and reduced production at six other mills to conserve cash. Accordingly, the company has curtailed 40% of its OSB capacity in North America and 20% of panel capacity in Europe throughout the year. The company noted that the full benefit of its decision to indefinitely curtail two OSB mills will have a positive impact on 2010 results. "These efforts, along with our initiatives to lower overhead costs and a dramatic decline in manufacturing input prices, had a positive impact on our financial performance," the company added. Further, Norbord said it has reduced overhead costs by 30% since 2007 by eliminating bonus payments, reducing headcount and cutting most consulting and travel expenses. NBD.TO closed Thursday's regular trading at C$16.55. In the past 52 weeks, the shares have been trading in a range of C$5.60-C$21.80 on the Toronto Stock Exchange.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.