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. I am confident, however, that we will demonstrate further improvement in execution through the continued deployment of JEM (JELD-WEN Excellence Model) as we progress toward our long-term strategic and financial goals.”

That was the message from Gary S. Michel, president and CEO of JELD-WEN, following the release of the financial results for JELD-WEN Holding Inc. for the three and six months ended June 29, 2019.

Net revenues for the second quarter decreased 4.6% year-over-year to $1.119 billion. Adjusted EBITDA for the second quarter decreased by $6.5 million year-over-year to $127.6 million, according to the financial statement. Amid those decreases, a bright spot was that cash flow from operations for the six months ended June 29, 2019 improved $50.9 million year-over-year to $42.6 million. Another positive for the future is the company’s JEM model.

I am pleased with the progress we’ve made on cost productivity initiatives, footprint rationalization and modernization projects and the disciplined deployment of our business operating system, the JELD-WEN Excellence Model or JEM. 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 Michel.

Net revenues for the three months ended June 29, 2019 decreased $53.5 million, or 4.6%, to $1.119 billion, compared to $1.172 billion for the same period last year. The decrease in net revenues was driven by a 3% decline in core revenues and a 3% adverse impact from foreign exchange, partially offset by a 1% positive impact from acquisitions, according to the company.

Net income was $22.4 million, compared to net income of $34.7 million in the same quarter last year, a decrease of $12.4 million. The decrease in net income was primarily due to lower gross margin on reduced volumes and the impact of acquisition costs.

In North America net revenues decreased $4.8 million or 0.7% to $668.4 million, due to a 3.0% decline in core revenues. Core revenues declined due to a volume/mix headwind of 6%, partially offset by a 3% benefit from pricing.

The company’s updated outlook for revenue growth in 2019 is now approximately flat versus 2018, compared to its previous outlook of 1% to 5% growth.

Our engaged associates are driving improved execution that can be seen across the organization and expect to deliver productivity in every market environment. I am confident that our investments in innovation and initiatives to grow our market share, coupled with the ongoing improvement in our productivity, will lead to substantial increases in revenue, profitability, and free cash flow,” said Michel.

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