Costs rise for Jeld-Wen in Q3
Jeld-Wen reported net revenues of $1.14 billion for the third quarter 2018, up nearly 15% from third quarter 2017 revenues of $991.3 million.
The window and door manufacturer attributed some of the increase by 17% contribution from recent acquisitions. Core revenue, which excludes the impact of foreign exchange and acquisitions completed in the last 12 months, was unchanged during the quarter.
The Charlotte, N.C.-based company also posted a third quarter net income of $28.9 million, compared to net income of $51.3 million in the same quarter last year – a decrease of $22.4 million or nearly 44%. The decrease in net income was primarily due to higher expenses during the quarter including $76.5 million in litigation fees, Jeld-Wen said.
“Volumes were unfavorably impacted by the lingering effects of prior service issues in our U.S. windows and Northern European businesses, resulting in operational inefficiencies impacting our profitability,” said Gary Michel, Jeld-Wen president and CEO. “While we have corrected these service issues, the impact on our volumes is expected to persist in the fourth quarter.”
In North America, revenues increased $96.3 million, or 16.8%, to $668.2 million, due to contributions from recent acquisitions, while core revenues were unchanged. Net revenues in Europe increased $27.8 million, or 10.5%, to $292.9 million, due to a 13% contribution from recent acquisitions. Australasia operations produced net revenues of $175.9 million, up 14%.
The window and door manufacturer attributed some of the increase by 17% contribution from recent acquisitions. Core revenue, which excludes the impact of foreign exchange and acquisitions completed in the last 12 months, was unchanged during the quarter.
The Charlotte, N.C.-based company also posted a third quarter net income of $28.9 million, compared to net income of $51.3 million in the same quarter last year – a decrease of $22.4 million or nearly 44%. The decrease in net income was primarily due to higher expenses during the quarter including $76.5 million in litigation fees, Jeld-Wen said.
“Volumes were unfavorably impacted by the lingering effects of prior service issues in our U.S. windows and Northern European businesses, resulting in operational inefficiencies impacting our profitability,” said Gary Michel, Jeld-Wen president and CEO. “While we have corrected these service issues, the impact on our volumes is expected to persist in the fourth quarter.”
In North America, revenues increased $96.3 million, or 16.8%, to $668.2 million, due to contributions from recent acquisitions, while core revenues were unchanged. Net revenues in Europe increased $27.8 million, or 10.5%, to $292.9 million, due to a 13% contribution from recent acquisitions. Australasia operations produced net revenues of $175.9 million, up 14%.