Norbord reports loss as US housing market worsens

(In U.S. dollars unless noted)

TORONTO, Oct 24 (Reuters) - Norbord Inc (NBD.TO) reported a small third-quarter loss on Wednesday on worsening market conditions in the United States, where it does the majority of its business.

Norbord, which makes products such as oriented strand board (OSB), which is used in construction, reported a loss of $1 million, or nil cents per share, compared to a year earlier profit of $7 million, or 5 cents a share.

The company said it does not expect near-term relief from housing market pressures in North America.

"Without question, the North American OSB industry is facing a period of prolonged weakness due to the combination of much lower U.S. housing starts, tighter mortgage lending conditions and the addition of new OSB capacity to the market," said Chief Executive Barrie Shineton in a statement.

"Still, we believe the long term fundamentals that support North American housing and OSB demand remain positive."

The company said its business in Europe will help to offset the decline in the North American markets.

Norbord also manufactures particleboard, medium density fiberboard, hardwood plywood and related products. ($1=$0.97 Canadian)