Q4 profits slide at JELD-WEN

JELD-WEN Holdings, Inc. reported fourth quarter 2017 net revenues increased 0.3% to $976 million from fourth quarter 2016 net revenues of $973.2 million a year ago.

The increase was driven by a 4% contribution from recent acquisitions and 2% due to the favorable impact of foreign exchange but was partially offset by a decrease in core revenues of 6%, JELD-WEN said.

In its North American operations, net revenues decreased $18.9 million, or by 3.3%, to $550.3 million during the quarter due to a decrease in core revenues of 7%, partially offset by a 4% contribution from recent acquisitions. In Europe, JELD-WEN revenues increased 7.8% to $276.4 million.

The Charlotte, N.C.-based door and window manufacturer closed its acquisition of Domoferm – a European provider of steel doors, steel door frames, and fire doors for commercial and residential markets based in Gänserndorf, Austria. Domoferm has 1,000 employees at four manufacturing sites in Austria, Germany, and the Czech Republic. The acquisition is expected to add annual revenues of more than $135 million.

For the full year, JELD-WEN’s net revenues increased 2.6% to $3.76 billion compared to $3.68 billion in 2016.

JELD-WEN also reported a net loss of $93.7 million, compared to net income of $258.2 million in the same quarter last year, a drop of $351.9 million. The company said it had $98 million in charges related to the Tax Cuts and Jobs Act along with $23 million in debt extinguishment costs related to fourth quarter debt refinancing.

For all of 2017, JELD-WEN reported that its net income decreased $366.4 million to $10.8 million, compared to a net income of $377.2 million in 2016. Approximately $98 million of the negative swing was due to the Tax Act and debt extinguishment costs.

“Looking forward into 2018, we are well positioned for core revenue growth, supported by constructive end market demand and our continued investments in new products and innovation," said Mark Beck, JELD-WEN president and CEO.