Jeld-Wen closing two window plants
Jeld-Wen announced it is closing window manufacturing facilities in Vista, California, and Hawkins, Wisconsin.
In a press release, the Charlotte, North Carolina-based window and door manufacturer said the move is “a further step in Jeld-Wen’s transformation journey to strengthen the foundation of the company and position itself for long-term, profitable growth.”
In February, the company reported that fourth quarter revenues from continuing operations decreased more than 13% to $1.02 billion compared to the prior fourth quarter. Jeld-Wen also posted a net loss from continuing operations of $22.6 million marking a massive swing from a net income of nearly $30 for the same period a year ago.
Due to the closures, Jeld-Wen said it expects to incur one-time costs of approximately $45 million and generate annual pre-tax income improvements of at least $11 million.
The Vista, California, site manufactures composite windows, which are marketed and sold under the brand name Auraline, and has approximately 110 associates. The Auraline line will be discontinued.
According to Jeld-Wen “multiple market factors have made it prohibitive to competitively sustain the composite windows product line.
Orders placed within 90 days of April 11 will be accepted and fulfilled.
Jeld-Wen expects to incur one-time costs in 2024 of approximately $21 million related to the Vista closure. After, Jeld-Wen is forecasting an annual pre-tax income improvement of at least $4 million.
The Hawkins, Wisconsin, site manufactures wood windows and employs approximately 340 associates.
This site will be consolidated production into the wood windows manufacturing facility in Rantoul, Illinois.
One-time costs related to this site consolidation are estimated at approximately $24 million, most of which should be incurred in 2024. Annual pre-tax income improvement, after completion of the plant closing, is expected to be at least $7 million.
Jeld-Wen said it will address updates about the closures during its quarterly earnings call scheduled for May 7. Overall Jeld-Wen operates facilities in 15 countries in North America and Europe and employs approximately 18,000 associates.
