Jeld-Wen profits fall in Q2
Window and door manufacturer Jeld-Wen reported net revenues from continuing operations of $1.13 billion for the second quarter 2023.
The latest financial report from the Charlotte, N.C.-based manufacturer is a 4.5% decrease from net revenues of $1.18 billion in the second quarter of 2022.
Jeld-Wen said the decline was driven by a 4% in core revenue, which was impacted by an 11% drop in volume. Core revenue was partially offset by a 7% increase in prices.
Additionally, Jeld-Wen posted a net income from continuing operations of $22.5 million for the quarter. This is a 35.7% decline compared to a net income of $35 million for the second quarter last year.
On July 2, Jeld-Wen completed the sale of its Australasian division for $446 million. Earlier this month, the company repaid $450 million of senior notes funded by the sale.
The sale of the Australasian division was first announced this past April.
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The Bottom Line: Income at Jeld-Wen falls 35.7% to $22.5 million for the quarter as sales sag by 4.5%.
What the CEO said: "While our end markets remained dynamic with volume declining in line with our expectations, we achieved year-over-year improvements in both margin and cash flow,” said Jeld-Wen CEO William Christensen. “In addition, we remained focused on delivering on our commitments including closing the sale of our Australasia business in early July. This important milestone allows us to focus on our core businesses and strengthen our balance sheet."
Looking ahead, Christensen said, "For the remainder of 2023, we expect continued macroeconomic uncertainty and weak demand across our markets that we are mitigating with ongoing cost reductions.”
Company Info: Click here to read the full second quarter 2023 financial report from Jeld-Wen.
