Jeld-Wen blows the doors off Q2 earnings
Window and door manufacturer Jeld-Wen reported second quarter revenue jumped 25.5% to $1.25 billion from revenue of $992.3 million for the same period a year ago.
The Charlotte, N.C.-based company attributed the increase in revenue to 19% core revenue growth and a 6% positive impact from foreign exchange.
Sales in North America increased 21.7% to to $740.1 million, due to a 21% increase in core revenue. In Europe, net revenue increased or 33.7% to $349.7 million.
Net income for the second quarter soared to $60.7 million compared to a net income of $23.1 million for the second quarter 2020.
Jeld-Wen said the increase in net income was primarily due to higher gross profit from increased volume/mix, positive price/cost realization and operational improvements.
The company also reported that it will commence the divestiture of its Towanda, Pa. operations, which provides wood fiber composite building products that include the MiraTEC exterior trim and Extira product lines.
Jeld-Wen plans to work with a court-appointed special master to complete sale. The manufacturer also said that it has decided not to appeal the decision by the U.S. Court of Appeals for the Fourth Circuit, which upheld the district court's divestiture ruling in the litigation between the company and Steves and Sons, Inc.
Jeld-Wen plans to work with a court-appointed special master to complete the sale. The manufacturer also said that it has decided not to appeal the decision by the U.S. Court of Appeals for the Fourth Circuit, which upheld the district court's divestiture ruling in the litigation between the company and Steves and Sons, Inc.
In its second quarter financial report, Jeld-Wen said, “the litigation lacks merit and denies that the company engaged in any wrongdoing. However, following a thorough review, Jeld-Wen has concluded at this time that it is in the best interest of the company and its stakeholders to commence a process for the divestiture of its Towanda, PA operations and certain related assets.”
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The Bottom Line: While sales jump 25.5% to $1.25 billion as profits rise nearly 163% to $60.7 million.
What the CEO said: "Jeld-Wen's multi-faceted growth platform and rigorous deployment of our business operating system, the JELD-WEN Excellence Model (JEM), are driving consistent growth and profitability improvement across the enterprise," said Gary Michel, president and CEO of Jeld-Wen. "Our associates delivered broad-based core revenue growth through profitable share gain and disciplined pricing, driving gross margin expansion in a challenging inflationary environment. Supportive residential new construction and repair and remodel activity, and continued execution of our playbook will drive sustained improvements in revenue, earnings, and free cash flow."
Company info: The full second quarter 2021 financial report from Jeld-Wen can be read here.