TORONTO, July 6, 2020 /PRNewswire/ - Norbord Inc.
(TSX: OSB) (NYSE: OSB) today announced an update regarding the
second quarter 2020 capacity utilization of its North American
oriented strand board (OSB) and European panel mills.
On March 25, in response to the
significant market uncertainty from the COVID-19 pandemic, Norbord
announced adjustments to its operating configuration to match
production with reduced demand for its products.
On May 6, as part of its first
quarter 2020 results, Norbord announced that it had reduced its
operating mill capacity by approximately 35% for the month of
April, but that there were early signs of improvement across
various end markets for the Company's products.
During the balance of the second quarter, market demand improved
sufficiently to allow the Company to substantially resume
production across its North American and European mills. As a
result, in the second quarter of 2020, Norbord's North American
mills produced at approximately 74% of available capacity
(excluding the Chambord, Quebec
mill), down from 79% in the first quarter of 2020, and its European
mills produced at approximately 70% of stated capacity, down from
93% in the first quarter of 2020. The Company's UK operations were
significantly impacted by the government-mandated lockdown of key
UK customers during the first half of the second quarter.
Given the uncertainty around the depth and duration of the
economic impact of COVID-19, the Company will continue to use the
flexible operating strategy employed during the early stage of the
pandemic to adjust operating schedules as necessary.
Norbord will release its second quarter 2020 results on
August 5, 2020 and does not intend to
provide further interim operational updates unless there is a
significant change in the Company's operating strategy.
Norbord Profile
Norbord Inc. is a leading global manufacturer of wood-based
panels and the world's largest producer of oriented strand board.
In addition to OSB, Norbord manufactures particleboard, medium
density fibreboard and related value-added products. Norbord has
assets of approximately $1.9 billion
and employs approximately 2,400 people at 17 plant locations in
the United States, Canada and Europe. Norbord is a publicly traded company
listed on the Toronto Stock Exchange and New York Stock Exchange
under the symbol "OSB".
This news release contains forward-looking statements, as
defined by applicable securities legislation, including statements
related to our strategy, projects, plans, future financial or
operating performance and other statements that express
management's expectations or estimates of future performance.
Often, but not always, forward-looking statements can be identified
by the use of words such as "set up," "on track," "expect,"
"estimate," "forecast," "target," "outlook," "schedule,"
"represent," "continue," "intend," "should," "would," "could,"
"will," "can," "might," "may," and other expressions which are
predictions of or indicate future events, trends or prospects and
which do not relate to historical matters identify forward-looking
statements. Forward-looking statements involve known and unknown
risks, uncertainties and other factors which may cause the actual
results, performance or achievements of Norbord to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking statements.
Although Norbord believes it has a reasonable basis for
making these forward-looking statements, readers are cautioned not
to place undue reliance on such forward-looking information. By its
nature, forward-looking information involves numerous assumptions,
inherent risks and uncertainties, both general and specific, which
contribute to the possibility that the predictions, forecasts and
other forward-looking statements will not occur. These factors
include, but are not limited to: (1) developments related to
COVID-19 or any other plague, epidemic, pandemic, outbreak of
infectious disease or any other public health crisis, including
health and safety measures instituted to protect the Company's
employees, government-imposed restrictions or other restrictions
that may apply to the Company's employees and/or operations
(including quarantine), the impact on customer demand, supply and
distribution and other factors; (2) assumptions in connection with
the economic and financial conditions in the US, Europe, Canada and globally; (3) risks inherent to
product concentration and cyclicality; (4) effects of competition
and product pricing pressures; (5) risks inherent to customer
dependence; (6) effects of variations in the price and availability
of manufacturing inputs, including continued access to fibre
resources at competitive prices and the impact of third-party
certification standards; (7) availability of transportation
services, including truck and rail services, and port facilities;
(8) various events that could disrupt operations, including
natural, man-made or catastrophic events and ongoing relations with
employees; (9) impact of changes to, or non-compliance with,
environmental or other regulations; (10) government restrictions,
standards or regulations intended to reduce greenhouse gas
emissions; (11) impact of weather and climate change on Norbord's
operations or the operations or demand of its suppliers and
customers; (12) impact of any product liability claims in excess of
insurance coverage;(13) risks inherent to a capital intensive
industry; (14) impact of future outcomes of tax exposures; (15)
potential future changes in tax laws, including tax rates; (16)
effects of currency exposures and exchange rate fluctuations; (17)
future operating costs; (18) availability of financing, bank lines,
securitization programs and/or other means of liquidity; (19)
impact of future cross-border trade rulings or agreements; (20)
implementation of important strategic initiatives and
identification, completion and integration of acquisitions; (21)
ability to implement new or upgraded information technology
infrastructure; (22) impact of information technology service
disruptions or failures; and (23) changes in government policy and
regulation.
The above list of important factors affecting forward-looking
information is not exhaustive. Additional factors are noted
elsewhere, and reference should be made to the other risks
discussed in filings with Canadian and US securities regulatory
authorities. Except as required by applicable law, Norbord does not
undertake to update any forward-looking statements, whether written
or oral, that may be made from time to time by, or on behalf of,
the Company, whether as a result of new information, future events
or otherwise, or to publicly update or revise the above list of
factors affecting this information. See the "Forward-Looking
Statements" section in the February 4,
2020 Annual Information Form and the cautionary statement
contained in the "Forward-Looking Statements" section
of the 2019 Management's Discussion and Analysis
dated February 4, 2020 and Q1 2020
Management's Discussion and Analysis dated May 5, 2020.
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SOURCE Norbord Inc.