Norbord Inc. has recorded break-even earnings in the first quarter of 2012, compared to a loss of $9 million in the fourth quarter of 2011.

“Our first quarter results are evidence that business is getting better,” said Barrie Shineton, President and CEO. “Our EBITDA improvement reflects a 7% quarter-over-quarter increase in North American benchmark OSB prices as well as continuing strong results from our European operations. I am particularly pleased with our Margin Improvement Program, which delivered another $7 million in gains from reduced raw material usages and record plant productivity.”

“This more positive trend should continue through the remainder of 2012. In North America, US economic news is improving and housing starts appear to be making a slow comeback. In Europe, our business is holding up better than expected and I now believe we will have another solid year.”

Val-d’Or, Quebec mill operations to be “suspended indefinitely”

Norbord has announced that effective July 2012, production at its Val-d’Or, Quebec mill will be suspended indefinitely. Approximately 120 employees are affected by this decision. Prior to this announcement, the mill had been operating in a partially curtailed mode for the last five years.

Debt Refinancing

Norbord continues to explore a range of attractive debt market refinancing options related to the July 1, 2012 bond maturity and expects to announce an outcome in the coming weeks. In addition, Norbord still has the option to repay half the bond maturity from its revolving bank lines and the other half from a standby lending commitment from its largest shareholder, Brookfield Asset Management.

Source: Norbord (read full release)