Norbord Inc. (OSB) swung to a net profit for the year ended Dec. 31, 2016. The company has made a net profit of $183 million, or $ 2.13 a share in the year, against a net loss of $56 million, or $0.66 a share in the last year. On an adjusted basis, net profit for the year was $175 million, when compared with net loss $14 million in the last year period.
Revenue during the year grew 17.03 percent to $1,766 million from $1,509 million in the previous year. Gross margin for the year expanded 1316 basis points over the previous year to 21.97 percent. Total expenses were 84.14 percent of annual revenues, down from 97.95 percent for the last year. This has led to an improvement of 1380 basis points in operating margin to 15.86 percent.
Operating income for the year was $280 million, compared with $31 million in the previous year.
"2016 was an excellent year for Norbord and we more than tripled our Adjusted EBITDA over the prior year," said Peter Wijnbergen, Norbord’s president and chief executive officer. "US housing starts continued their steady recovery, driving increased North American OSB demand and prices. The fourth quarter of 2016 marked our eighth consecutive quarter of improved results as the seasonal slowdown in construction-related demand was less pronounced than usual. Channel inventories remain lean and demand in all our core markets remains strong, setting us up well as we enter 2017."
Operating cash flow improves significantlyNorbord has generated cash of $313 million from operating activities during the year, up 1,204.17 percent or $289 million, when compared with the last year. The company has spent $94 million cash to meet investing activities during the year as against cash outgo of $68 million in the last year.
The company has spent $52 million cash to carry out financing activities during the year as against cash outgo of $27 million in the last year period.
Cash and cash equivalents stood at $161 million as on Dec. 31, 2016, up 1,688.89 percent or $152 million from $9 million on Dec. 31, 2015.
Debt comes down marginally
Norbord has recorded a decline in total debt over the last one year. It stood at $746 million as on Dec. 31, 2016, down 3.74 percent or $29 million from $775 million on Dec. 31, 2015. Short-term debt stood at $200 million as on Dec. 31, 2016.
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