Jeld-Wen Q4 profits slump
Door and window manufacturer challenged by operational inefficiencies and global headwinds.
Jeld-Wen reported fourth quarter 2019 revenues fell 2.1% to $1.069 billion from fourth quarter 2018 revenues of $1.092 billion.
For the full year, revenues slipped 1.3% of $4.29 billion $4.35 billion.
The Charlotte, N.C.-based door and window manufacturer reported a fourth quarter net income of $7.8 million, plummeting nearly 80% from a net income of $38.1 million for the same period a year ago.
Jeld-Wen’s full year 2019 net income fell 55.6% to $63 million from a net income of $141.9 million in the prior year.
During the quarter, North American revenues increased 3.1% to $642.4 million but revenues in Europe fell 3.8%, to $290.4 million. In Jeld-Wen’s Australasia market, revenues decreased 18.7% to $135.7 million during the period.
The Bottom Line: Jeld-Wen fourth quarter profits fall nearly 80% to $7.8 million while its net income for the year drops 55.6% to $63 million.
What the CEO said: “2019 was a pivotal year as we advanced deployment of the Jeld-Wen Excellence Model (JEM) across the enterprise and delivered positive productivity, even as we faced significant market headwinds in residential new construction demand in our North America and Australasia segments,” said Gary Michel, Jeld-Wen president and CEO.
“Our fourth quarter results were challenged by continued market demand headwinds in Australasia and operational inefficiencies in our North America segment. While I am pleased that we sequentially improved our North America performance from the third quarter, I’m disappointed that we did not return to margin expansion,” Michel added.
Company info: The full fourth quarter 2019 and year-end report from Jeld-Wen can be read here.
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