Jeld-Wen Experiences Revenue Growth, Impacts of InflationMay 3rd, 2022 by Travis Rains
Jeld-Wen reports seven consecutive quarters of core revenue growth along with a 7.2% increase in net revenue from the same time last year. However, the company noted in its first-quarter results for 2022 a $26 million decrease in net income from one year prior, primarily resulting from inflation.
Net revenue increased by 7.2% to $1,171.0 million from $1,092.4 million at the same time last year. According to the report, a 10% core revenue growth, driven by price realization, spurred the increase in net revenue.
The first quarter saw a net loss of $0.5 million compared to a net income of $25.5 million during the same period last year. According to the company, inflation was the primary factor in the $26.0 million decrease. Adjusted net income also decreased 49.1% to $14.2 million from $27.9 million in the same period last year.
“I am proud of our dedicated associates who delivered another solid quarter of core revenue growth across each of our segments,” says Gary S. Michel, chair and CEO. “Our improved execution and customer-centric solutions enabled us to capitalize on solid customer demand. Despite our strong core revenue growth, material increases in raw material, freight and labor inflation had a significant impact on our earnings.”
First-quarter figures for North America looked even better with an $82.7 million, or 12.9%, increase in net revenue to $722.3 million. The jump results from a 13% increase in core revenue, which increased due to price.
“As we head into the second quarter, we remain laser-focused on driving above market growth through the introduction of innovative and margin accretive new products and services and additional strategic margin expansion opportunities,” Michel continues. “Given our strong order books, end market demand and initiatives in progress to drive profitable growth, we remain confident in our ability to deliver our 2022 and long-term financial commitments.”