Norbord Inc. has posted a net loss of $11 million for the full year of 2011, compared to a net earning of $13 million in 2010.

“Our 2011 financial results are disappointing in absolute terms,” said Barrie Shineton, President and CEO. “However, I am pleased that Norbord’s operations in both North America and Europe performed exceptionally well this year. We achieved $25 million of margin improvement gains, reflecting an outstanding effort across our company in reducing manufacturing costs and increasing mill productivity. In North America, these gains allowed us to maintain positive EBITDA despite a 15% drop in OSB prices. In Europe, our business held up surprisingly well in the face of increasing economic uncertainty. We increased shipments by 10% and stronger product pricing offset sharply higher raw material costs.”

“Early indicators suggest some upside in both demand and price in North America as we move into the first quarter of 2012. The OSB supply chain is lean and less capacity appeared to be available at the end of last year. And, I believe our European business will continue to perform well, in spite of the evolving sovereign debt crisis that continues to dominate media headlines.”

Norbord Inc. is an international producer of wood-based panels with assets of $1 billion, employing approximately 2,000 people at 13 plant locations in the United States, Europe and Canada. Norbord is one of the world’s largest producers of oriented strand board (OSB). In addition to OSB, Norbord manufactures particleboard, medium density fibreboard (MDF) and related value-added products.

Source: Norbord (read full release)