Norbord Inc. (TSE:NBD), the third-largest North American maker of wood sheathing used to build homes, rose to the highest in more than three weeks after reporting better-than-expected profit in its fiscal first quarter.
The shares advanced to C$29.98, the highest intraday price since April 7, and were trading at C$28.82, up 6 percent, at 2:13 p.m. in Toronto.
Net income dropped to $7 million, 13 cents per diluted share, in the period ended March 29, compared to $67 million, or $1.26 per diluted share, in the year-earlier period, the Toronto, Ontario-based company said in a statement today.
The result, however, beat the average estimate of 8 analysts who were predicting a breakeven profit.
The company ascribed the drop to the severe winter weather that held back the construction of new homes in North America.
Norbord said demand in Europe remained strong, reflecting improving housing markets in the United Kingdom and Germany.
The company said it doesn't expect to restart its idled mill in Val-d'Or, Quebec, this year but will continue to monitor market conditions.