Profits down at Jeld-Wen
Soft construction demand impacts Q2 for window and door manufacturer.
Jeld-Wen Holding Inc., the window and door manufacturer, reported second quarter 2019 net revenues of $1.119 million – a 4.6% drop from net revenue of $1.172 billion for the same period a year ago.
The Charlotte, N.C.-based company also reported a second quarter net income of $22.4 million, down 34% compared to net income of $34.7 million in the same quarter last year
The decrease in net income was primarily due to lower gross margin on reduced volumes and the impact of acquisition costs, the company said.
North America net revenues decreased 0.7% to $668.4 million while sales in Europe fell 5.7% to $300.4 million. Sales in Australasia fell 16.8% to $150.2 million.
The bottom line: Sales drop 4.6% to $1.172 billion as profits fall 34% to $34.7 million.
What the CEO said: “Against a backdrop of soft demand, we expanded adjusted EBITDA margins in North America and Australasia in the second quarter, demonstrating the power of what can be achieved through the execution of JEM,” said Gary Michel, president and CEO. “I am disappointed with our revenue results in the quarter, driven by the sharp deterioration we saw in the Australasia market late in the quarter and the demand softness in North America new construction.”
Company info: Jeld-Wen’s full second quarter 2019 report can be read here.
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