Jeld-Wen updates financial outlook

Window and door manufacturer Jeld-Wen has revised its sales expectations for the 2021 fiscal year.

The Charlotte, N.C.-based company said that it now expects full year 2021 revenue growth in the range of 10% to 12% compared to the previous range of 12% to 14%.

The lowered forecast is being attributed to lower volume from the impact of labor constraints, supply chain disruptions, and mandated operating limitations. 

Additionally, the company now expects full year 2021 adjusted EBITDA in the range of $470 million to $490 million, compared to the previous range of $510 million to $535 million.

"Demand remains strong in all of our end markets, demonstrated by year-over-year growth in orders and backlog in each segment and a record book-to-bill ratio in North America for the third quarter," said Gary Michel,” Jeld-Wen president and CEO. "Our ability to meet this high level of demand is affected by labor constraints, supply chain disruptions, and operating limitations in certain markets due to mandated COVID-19 lockdowns and adverse weather events.”

Jeld-Wen reported that it expects the majority of the change in the full year 2021 outlook to be realized in the third quarter and expects fourth quarter year-over-year margin expansion.

“I'm pleased with how our team has applied our business operating system, the JELD-WEN Excellence Model (JEM), to overcome these external headwinds and produce tangible customer benefits and maintain industry-leading service levels,” Michel noted. “Our commercial excellence initiatives are also demonstrating results, as price realization remains strong and additional pricing actions are now in place to continue to offset accelerating cost inflation."    

Jeld-Wen will release its third quarter 2021 results on Nov. 1. 

For its second quarter, Jeld-Wen reported revenue jumped 25.5% to $1.25 billion from revenue of $992.3 million for the same period a year ago.

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.