Jeld-Wen Reports Slow Growth in 2017’s Fourth Quarter

February 23rd, 2018 by Editor

Jeld-Wen reported this week that revenues for the fourth quarter of 2017 grew just 0.3 percent to $976 million, compared to $973.2 million for the same period in 2016.

“Jeld-Wen completed 2017 by delivering another consecutive quarter of earnings growth and margin improvement,” said Mark Beck, president and chief executive officer. “Strong execution and margin improvement in most of our portfolio was offset by continued operational headwinds in specific product lines. Our recent acquisitions continue to perform ahead of plan. We remain enthusiastic about our pipeline and our ability to create value through strategic M&A.”

Last week, the company completed its acquisition of the Domoferm Group, a European provider of steel doors, steel door frames, and fire doors for commercial and residential markets. Jeld-Wen expects the acquisition to add approximately €110 million ($135.3 million) in annual revenue. Terms of the deal, which was announced in October 2017, were not disclosed.

In North America, net revenues decreased $18.9 million, or 3.3, to $550.3 million in the fourth quarter of 2017. In Europe, net revenues grew $19.9 million, or 7.8 percent, to $276.4 million, and in Australasia, net revenues increased $1.9 million, or 1.3 percent, to $149.2 million.

For the year, net revenue increased $97.1 million, or 2.6 percent, in 2017 to $3.764 billion, compared to $3.667 billion in 2016. The company says core revenues were unchanged for the full year, as favorable pricing in all three reporting segments was offset by reduced volumes in North America and lower window revenues.

Looking ahead to 2018, Jeld-Wen expects net revenue growth of 8 percent to 11 percent.

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