(Reuters) - Canadian wood panels maker Norbord Inc’s NBD.TO second-quarter profit rose six-fold on a U.S. housing market recovery and improved prices for oriented strand board.
Groundbreaking on new U.S. homes rose in June to its fastest pace in over three years, lending a helping hand to an economy that has shown worrisome signs of cooling.
“We are finally seeing a more sustainable U.S. housing market recovery and this is flowing through to our bottom line,” Norbord’s Chief Executive Barrie Shineton said in a statement.
Norbord’s rival Tembec Inc (TMB.TO) is due to report results later in the day.
Oriented strand board (OSB), similar to plywood but cheaper, is commonly used to sheath roofs, walls and floors.
North Central benchmark OSB prices rose 36 percent to average $235 per thousand square feet in the quarter from the year-ago period.
Norbord’s April-June profit rose to $6 million, or 14 cents per share, from $1 million, or 3 cents per share, a year earlier.
Sales rose 13 percent to $272 million.
The company’s shares, which have risen more than 70 percent so far in 2012, closed at C$13.97 on Wednesday on the Toronto Stock Exchange.
Reporting by Ankur Banerjee in Bangalore; Editing by Don Sebastian