Jeld-Wen says Q3 was a tough quarter
While announcing preliminary financial results for the third quarter 2019, Jeld-Wen reports that its net revenues are down 3.9% to $1.09 billion.
The Charlotte, N.C.-based window and door manufacturer also said it is forecasting an adjusted EBITDA of $106 million to $110 million, compared to $132.6 million in the same period a year ago
Jeld-Wen third quarter results were lower than expected in North America and Australasia, primarily related to reduced demand in residential new construction channels, and the impact of continued erratic order patterns in North America windows retail channel, the company said.
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The bottom line: Jeld-Wen expects to see a big falloff in earnings as sales sag in the third quarter.
What the CEO said: “I am disappointed in our preliminary results for the third quarter, primarily driven by soft demand in North America and further deterioration in housing activity in Australasia,” said Gary Michel, president and CEO of Jeld-Wen. “Profitability was impacted by the lower volumes as well as manufacturing inefficiencies in our North America windows business, caused by continued erratic ordering activity in the retail channel, where we were unable to adjust our cost structure within the quarter to support the unexpected demand patterns. We delivered core margin expansion in Europe driven by positive price and productivity, partially offsetting the North America and Australasia performance.”
Michel also said that the company is working on improving operational inefficiencies in its North America windows business.
“I recently visited several of these facilities and believe we have the right processes and controls in place to improve performance. Additionally, we are also working with our retail customers to normalize their orders and support their demand patterns. As a result of these actions, I believe that the majority of the impact from these issues was in the third quarter and we will see sequential operational performance improvements in the fourth quarter.”
Michel noted that the issues impacting Jeld-Wen in its third quarter are proof that the company has work ahead of itself, including reducing cost structure
“I believe the issues that impacted our third quarter results underscore the urgency to continue to implement our strategy, reduce our cost structure and eliminating “complexity” in its operations.
Company info: The full third quarter preliminary report from Jeld-Wen can be accessed here. The company will provide a full third quarter update on Nov. 6.
The Charlotte, N.C.-based window and door manufacturer also said it is forecasting an adjusted EBITDA of $106 million to $110 million, compared to $132.6 million in the same period a year ago
Jeld-Wen third quarter results were lower than expected in North America and Australasia, primarily related to reduced demand in residential new construction channels, and the impact of continued erratic order patterns in North America windows retail channel, the company said.
###
The bottom line: Jeld-Wen expects to see a big falloff in earnings as sales sag in the third quarter.
What the CEO said: “I am disappointed in our preliminary results for the third quarter, primarily driven by soft demand in North America and further deterioration in housing activity in Australasia,” said Gary Michel, president and CEO of Jeld-Wen. “Profitability was impacted by the lower volumes as well as manufacturing inefficiencies in our North America windows business, caused by continued erratic ordering activity in the retail channel, where we were unable to adjust our cost structure within the quarter to support the unexpected demand patterns. We delivered core margin expansion in Europe driven by positive price and productivity, partially offsetting the North America and Australasia performance.”
Michel also said that the company is working on improving operational inefficiencies in its North America windows business.
“I recently visited several of these facilities and believe we have the right processes and controls in place to improve performance. Additionally, we are also working with our retail customers to normalize their orders and support their demand patterns. As a result of these actions, I believe that the majority of the impact from these issues was in the third quarter and we will see sequential operational performance improvements in the fourth quarter.”
Michel noted that the issues impacting Jeld-Wen in its third quarter are proof that the company has work ahead of itself, including reducing cost structure
“I believe the issues that impacted our third quarter results underscore the urgency to continue to implement our strategy, reduce our cost structure and eliminating “complexity” in its operations.
Company info: The full third quarter preliminary report from Jeld-Wen can be accessed here. The company will provide a full third quarter update on Nov. 6.