Norbord implements tight cost-cutting measures

Toronto-based Norbord Inc will not pay out any management bonuses, nor commit any capital expenditure beyond essential outlays, as part of its cost-cutting measures to ride out the poor OSB market, ceo Barrie Shineton wrote in a letter to shareholders. On April 23, Norbord reported a loss of US$31m in the first quarter of 2008 because of the continued weakness in North American OSB prices. Describing the additional "aggressive" action Norbord has taken this year to reduce costs, Mr Shineton said the company had eliminated all management bonus payments in North America and moved to further cut back corporate overheads. Capital expenditures have been limited to only those projects required for environmental compliance and essential maintenance.