Norbord Inc. NBD-T

says cost cutting and production curtailments resulted in a smaller fourth-quarter loss last year for the Toronto-based wood panel maker.

The loss in the final three months of 2009 was $11-million (U.S.), 63 per cent below the $30-million loss reported in the fourth quarter of 2008.

That equates to a loss of 25 cents per share in the most recent quarter, down from a loss of $1.88 per share reported by Norbord in the fourth quarter of 2008.

Norbord says demand for oriented-strand board, a type of wood panel used in construction, improved in the fourth quarter and prices began to recover from last summer. But average prices remained lower than in late 2008.

Sales in the final quarter of 2009 were $196-million, up from $191-million in the comparable period of 2008.

Annual sales, however, were down 23 per cent last year – falling to $718-million from $943-million in 2008.

Last year’s loss was $58-million or $1.35 per share, compared with $115-million or $7.62 in 2008.