July 29, 2011 / 10:23 AM / in 6 years

CORRECTED-UPDATE 1-Norbord Q2 profit falls on weak demand for wood panels

(Corrects headline and paragraph 1 to show the company posted a lower second-quarter profit. Also corrects paragraph 4 to show the company had posted a profit a year ago)

July 29 (Reuters) - Canadian wood panels maker Norbord Inc posted a huge drop in second-quarter profit, hurt by weak oriented strand board (OSB) prices and declining home construction activity in the U.S.

OSBs, similar to plywood but cheaper, are commonly used to sheath roofs, walls and floors.

“I expect our European business to continue to deliver solid results for the remainder of the year,” Chief Executive Barrie Shineton said in a statement.

April-June profit was $1 million, or 3 cents a share, versus earnings of $33 million, or 76 cents a share, a year ago.

Revenue fell 19 percent to $241 million.

The CEO said he was cautious about North American OSB prices amidst declining U.S. housing numbers in the second quarter. (Reporting by Gowri Jayakumar in Bangalore; Editing by Joyjeet Das)

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