TORONTO (Reuters) - Norbord Inc NBD.TO reported on Wednesday a first-quarter loss that almost doubled from the previous year as severance charges and a weak U.S. housing market sapped demand for its key wood product.
Norbord, which makes such products as oriented strand board used in construction, reported a loss of $31 million, or 21 cents a share, in the first quarter. That compares with a loss of $16 million, or 11 cents a share, in the same quarter a year earlier.
The company said the results included a $4 million pre-tax charge, or 2 cents per share, related to severance for the closure of the particleboard line at Genk, Belgium.
Revenue was $234 million, down 10.3 percent from $261 million.
The company said North American OSB prices dropped to its lowest level in more than a decade during the quarter, but expected prices to stabilize in the second and third quarters. However, it said the “industry will remain under considerable pressure in 2008 and 2009.”
Reporting by Scott Anderson