Jeld-Wen swings to Q1 profit
Window and door manufacturer Jeld-Wen posted first quarter 2023 revenue of $1.22 billion.
This marks 4.4% growth from sales of $1.17 billion for the same period a year ago.
The Charlotte, North Carolina-based company said sales received a lift from core growth including a 10% rise in prices.
Additionally, Jeld-Wen’s net income was $15.1 million in the first quarter compared to net loss of $0.5 million in the first quarter last year.
North American net revenue increased 6.3% to $768.0 million, driven by a 7% increase in core revenue.
In Europe net revenue decreased 3.3% to $312.5 million due to a 6% adverse impact from foreign exchange, slightly offset by a +3% increase in core revenue.
Revenue from Jeld-Wen’s Australasia division increased 13.3%, to $142.1 million, due to a 20% increase in core revenue, partially offset by a 7% adverse impact from foreign exchange, the company said.
Last month, Jeld-Wen announced it was selling its Australasia business to Platinum Equity in a $461 million deal before tax and subject to certain adjustments.
Jeld-Wen said that it intends to use the majority of the proceeds from the transaction to pay down debt.
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The Bottom Line: Jeld-Wen swings from a first quarter 2022 loss to a first quarter 2023 profit of $15.1 million.
What the CEO said: "We made progress in the first quarter to simplify and strengthen JELD-WEN which, combined with more favorable than expected market conditions, resulted in improved financial performance," said Jeld-Wen CEO William Christensen. "During this time of weaker demand, our associates carefully controlled costs while continuing to deliver on our customers' expectations.”
"Driven by our solid first quarter results, ongoing cost reduction activities and the move of our Australasia segment to discontinued operations, we are raising our 2023 guidance on the remaining business,” Christensen added. However, with the continued macro-economic uncertainty in North America and Europe, we are taking a pragmatic view of the market and our financial outlook for the year."
Christensen was appointed CEO of Jeld-Wen in December 2022.
Company Info: Jeld-Wen’s full first quarter 2023 financial report is available here.
