TORONTO — Norbord Inc. cut its dividend due to the uncertainty caused by the pandemic as it reported a profit in its first quarter, boosted by higher oriented strand board prices and lower raw material and energy prices.
The company says it will pay a quarterly dividend of five cents Cdn per share, down from 20 cents Cdn.
The lower payment to shareholders came as Norbord, which reports its financial results in U.S. dollars, says its first-quarter profit amounted to US$20 million or 25 cents per share. That compared with a profit of US$1 million or a penny per share in the first quarter of 2019.
Sales totalled US$467 million, down from US$476 million in the same period a year ago.
On an adjusted basis, Norbord says it earned US$21 million or 26 cents per share in the first three months of the year compared with an adjusted loss of US$2 million or two cents per share in the first quarter of last year.
Analysts on average had expected an adjusted profit of 20 cents per share according to financial markets data firm Refinitiv.
This report by The Canadian Press was first published May 6, 2020.
Companies in this story: (TSX:OSB)
The Canadian Press