Jeld-Wen expects net revenue growth in 2018
In its revenues for the 4Q of 2017, Jeld-Wen reported slow growth of 0.3%; expects net revenue growth of 8% to 11% in 2018.
Jeld-Wen reported that revenues for the fourth quarter of 2017 grew just 0.3% to USD 976 million, compared to USD 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.”
The company recently 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 EUR 110 million (USD 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 USD 18.9 million, or 3.3, to USD 550.3 million in the fourth quarter of 2017. In Europe, net revenues grew USD 19.9 million, or 7.8%, to USD 276.4 million, and in Australasia, net revenues increased USD 1.9 million, or 1.3%, to USD 149.2 million.
For the year, net revenue increased USD 97.1 million, or 2.6%, in 2017 to USD 3.764 billion, compared to USD 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% to 11%.